Waksdale Reviews Spark Joy

employment contracts Waksdale reviewA new year often means some level of house-cleaning by employers, including the updating of core workplace documents. SpringLaw has seen a spike in this work because many employers understand, now more than ever, the need to have their employment contracts reviewed, with a particular focus on termination provisions. This review should include any ancillary policies, Codes of Conduct, or plan documents referencing when and under what circumstances an immediate termination for cause can occur. We refer to this as a ‘Waksdale review’ because it is driven by the court’s reasoning in Waksdale v. Swegon North America. For legal nerds, our prior blog details why a Waksdale review is necessary.  

Existing Employees: New Employment Contracts or Status Quo

If no red flags are discovered in contracts or other core workplace documents through a Waksdale review, then HR can pat themselves on the back for keeping current and move on. Where a Waksdale update is required in employment contracts (or other documents), a strategic review of next steps is important. 

A termination cost analysis, risk assessment, and review of the makeup of the existing workforce are necessary to map out a plan. Next steps are also driven in part by the wording and enforceability of a contract’s termination language (i.e. how bad is it?). 

In some cases, proposing new contracts to existing employees can raise eyebrows and unnecessarily affect employee morale, especially without proper communication about the purpose of the amendments. Sometimes this tidying exercise is not worth the effort. Employers may instead decide to temporarily maintain the status quo with existing employees, and save their shiny new documents for their new hires. 

Consideration and Timing of Updated Contract Rollouts

If employers do decide to roll out updated contracts for existing employees, determining the appropriate ‘consideration’ is next. Consideration is the fancy legal term for ‘something of value’. For updated (i.e. amended) contracts and policies to be enforceable, employers must provide existing employees with ‘consideration’ in exchange for the employee’s agreement/signature.

A key preliminary step in this updating exercise is to plan ahead and assess when employees will next be offered a (more than nominal) enhancement to the existing terms of their employment (e.g. a bonus, salary increase, increased vacation or other paid time off, enhanced benefits coverage, introduction of an Employee Assistance Program (EAP), etc.). In most cases, these examples would be valid consideration, and prior to implementing these enhancements is a good time to roll out updated /amended contracts and/or material changes to policies. It is always an unfortunate missed opportunity (and more expensive) when an employer requests material contract or policy updates and advises that they just rolled out a new bonus plan, for example. 

Unless an employer’s contract and policies are entirely up to date and compliant (rare in our experience), in addition to predictability and enforceable termination provisions, a Waksdale review often leads to ditching old, out-of-date policies and material changes to the employer’s core documents and HR practices. Covid has led to many material changes in how and where we work, which need to be set out in employer policies. This in-with-the-new and out-with-the-old Marie Kondo-style tidying exercise can be quite a buzz for HR. 

Key Steps for Employers in a Waksdale Review:

  1. Have your employment contracts reviewed by an employment lawyer to ensure that they comply with the Ontario Employment Standards Act, 2000,  with a focus on all termination-related provisions;
  2. Ensure the review is broad and includes all employer policies, Codes of Conduct, plan documents, and contract appendices that state or imply that certain conduct or events may lead to a termination for cause, or immediate termination, without the employee receiving any entitlements beyond their last day of work – this content requires a careful Waksdale review;
  3. If the result of the review is that the employer’s contract and/or policies do have a Waksdale problem, assess with an employment lawyer when and how it should be fixed;
  4. Plan ahead and if future raises or enhanced employment terms are in the works, consider what contracts and policies need updating before employees receive what could be the necessary ‘consideration’ in exchange for their acceptance of updated/amended terms of employment;
  5. Take care in your communications with existing employees about any amendments, and provide time for them to obtain legal advice before signing;
  6. In many cases, fixing a Waksdale problem is a smooth process because employees are receiving the same entitlements on termination as they understood to be the case when they were hired, and they are (usually) being paid to sign an updated contract without a Waksdale problem; in these cases, clear communication helps employees understand that their amended contract is a result of evolving employment law, and part of a contract updating process. 

The best part of this tidying and discarding exercise is having new, updated and compliant core workplace documents. Talk about sparking joy…

If you need help with a Waksdale review, get in touch.

Share the Post:

Related Posts

Employees reviewing AI-generated work on a computer in an office, highlighting the importance of AI expert oversight and responsible workplace AI use.

Your AI Isn’t the Expert. You Are.

AI can generate answers in seconds, but speed doesn’t guarantee accuracy. Employers who rely on AI without proper oversight may expose their businesses to legal, privacy, and reputational risks. Discover why expert review matters, what AI gets wrong, and how a responsible AI strategy can help your organization benefit from innovation while minimizing risk.

Read More »
Overhead view of a modern workspace with a laptop, resumes, job description documents, notebook, coffee mug, and subtle digital connections showing how AI is already integrated into everyday workplace tasks.

Why Every Employer Now Needs an AI Policy (Even If You Think You Don’t Use AI) 

Think your company doesn’t use AI? Think again. Employees are already using AI tools to draft emails, review resumes, and create content, often without formal approval. An AI policy helps employers manage privacy, confidentiality, intellectual property, and compliance risks while encouraging responsible innovation. Learn why every employer needs clear AI guidelines before a problem arises.

Read More »
Two workplace professionals reviewing information on a laptop during a discussion about employee wellbeing and psychological safety in a modern office.

Psychological Safety and Employer Liability in Ontario: What You Need to Know 

Psychological safety is no longer just an HR concern. Ontario employers are increasingly expected to identify and address workplace factors that can contribute to psychological harm. From harassment and bullying to WSIB mental stress claims, failing to manage these risks can have legal consequences. Learn what psychological safety means in practice and why employers should take proactive steps now.

Read More »

Contact Us

Thank You For Your Interest. Kindly Complete The Form Below. Our Client Services team will be in touch with further information about our fees and intake process.
[grow-contact-form]