Case Study 3 Weight: 7.5 % of final grade

When Serena was dismissed without cause from her position as vice-president, she received only her entitlements under the Employment Standards Act, 2000. Her compensation package was variable so, as required by the ESA, the employer averaged her last 12 weeks of employment in calculating her entitlements to statutory termination and severance pay. No bonus amounts were included in this calculation because she had not received a bonus in the previous 12-week period.

In limiting Serena to her statutory entitlements, the employer relied on the termination clause contained in her employment contract. It read as follows:

18(c) In addition, the Employer may terminate this Agreement at its sole discretion for any reason, upon providing the Employee all payments or entitlements in accordance with the standards set out in the Ontario Employment Standards Act, as may be amended from time to time.

18(d) If at any time the Employer provides you with a bonus, it will not be included in the calculation of payment for the purpose of this Article or as otherwise agreed to or required by the Employment Standards Act.

Serena sued for wrongful dismissal damages under the common law, arguing that the termination clause was unenforceable.

a. What legal argument might Serena use to say that this termination clause was unenforceable?

b. Do you think this argument would be successful? Explain your answer.

RUBRIC

Evaluation Criteria	Average	Good	Excellent
Clear explanation of key issues The problems, scope, and seriousness were clearly identified in the discussions. There was a well-focused diagnosis of issues and key problems that demonstrated a good grasp of the companys present situation and issues.	1-2	2-3	4-5
Appropriate analysis, evaluation, and synthesis for the specific issue identified. There was complete data on which to base a thorough analysis Key change drivers underlying the issues were identified. Synthesis, analysis, and evaluations were clearly presented and supported in a literate and effective manner.	1-2	3-5	5-7
Proper organization, professional writing, and logical flow of analysis. APA formatting & References Key points were supported with a well-thought-out rationale based on applying specific concepts or analytical frameworks to the data provided in the case. Proper grammar, spelling, punctuation, professional writing, and syntax.	0-1	1-2	2-3

Total :__15_________________________________________