Employment and Labor Law

The Court of Appeal Reaffirms a Commonsense Approach in Interpreting Termination Clauses in Ontario

On August 6, 2026, the Ontario Court of Appeal released its much-anticipated decision in Baker v. Van Dolder’s Home Team Inc., 2026 ONCA 568 (“Baker”), which addressed two grouped appeals from lower court decisions: Baker v. Van Dolder’s Home Team Inc., 2025 ONSC 952 (“Baker ONSC”) and Li v. Wayfair Canada ULC., 2025 ONSC 2959 (“Li”). Baker ONSC and Li involved virtually identical “at any time” language in without cause termination provisions, yet the lower courts had reached opposite conclusions on enforceability. The decision was heard with interveners (the Ontario Chamber of Commerce on behalf of the employer, and Parkdale Community Legal Services and the Income Security Advocacy Centre on behalf of the employees), signalling its broad policy significance.

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