What is the case law on external lay-off provisions in employment contracts?
Yukon, Canada
The following excerpt is from Sawyer v. Rab Energy Group Inc., 2001 YKSC 537 (CanLII):
Counsel relies upon this court’s decision in Chambers v. Yukon College, [1995] Y.J. No. 107. In that case, the employee had a written contract that incorporated an external lay-off provision. Vertes J. found that the lay-off provision was ambiguous in the contract, but was quite clearly understood by the employee and was not a unilateral step taken by the employer.
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