Should I ask to have a termination clause in my contract?

Generally, termination provisions are drafted by the employer with the specific purpose of limiting its termination payments in the event of dismissal. They are not designed to protect or enhance the employee’s termination entitlements, but usually the opposite.  

In most cases, these clauses are designed to limit the employee’s entitlement to the minimum statutory requirements or slightly just above the minimum.  

When entering a new employment relationship, parties generally don’t want to think about the worst-case scenario – termination. It’s the last thing you would want to think about.  

However, it is prudent to review the fine print and find out the contract stipulations regarding your entitlements in the event of termination. Once you sign on the dotted line, you may be stuck with those provisions.  

These clauses may not be take it or leave it and it is worthwhile to negotiate, not just compensation terms, but also improved termination entitlements.  

If the contract is silent about termination, this is not a bad thing. Normally, this is more favourable to the employee. By default, the common law standards pertaining to severance will automatically apply, which is significantly more generous than employment standards act requirements.   

If you already signed a contract with a termination clause, you may still be entitled to more severance.  There may be a variety of reasons the clause may not be considered legally enforceable. If you are faced with possible termination and have a termination clause in your contract, get legal advice.