Terminating an employee is tough. The conversation in which the employer provides the employee with notice of termination can be awkward. Given how difficult terminations are, for both the employer and the employee, courts hold employers “to an obligation of good faith and fair dealing in the manner of dismissal.”
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We all know that when a couple describes their break-up as “mutual” we are likely not getting the full picture. Can the same be said of employment relationships that end mutually?
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When an employee is terminated without cause and offered a package that is very modest, but otherwise compliant with the employment contract, a common first step for his or her lawyer will be to see if the contract can be set aside. If the contract can be declared void, the employee can try to pursue the typically much greater common law damages. There are several grounds upon which courts have set aside either the full contract or at the least, the termination provision. This blog post will focus on the issue of signing the contract prior to the start date.
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