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Nova Scotia: Contract Ambiguous

In Brocklehurst v. Micco Companies Limited, 2025 NSSC 192, the Nova Scotia Supreme Court found that a termination clause limiting severance to the “minimum notice of termination, or pay in lieu thereof, and severance pay (if applicable) to which you are entitled under the Nova Scotia Labour Standards legislation” was ambiguous and therefore unenforceable.

Mr. Brocklehurst, a sales representative with over eight years of service, was terminated without cause and provided only the statutory minimum of four weeks’ pay. Justice Chipman held that the clause did not clearly and expressly limit the employee’s right to common law notice. The court emphasized that in Nova Scotia, as confirmed in Bellini v. Ausenco Engineering Alberta Inc., a termination provision must contain express language converting the statutory “floor to a ceiling.”

Having found the clause unenforceable, the court applied the Bardal factors. Mr. Brocklehurst, aged 52, was awarded eight months’ notice, based on annual total compensation of approximately $80,000 including salary, commissions, and benefits. The court rejected the employer’s argument that commissions were excluded and found no failure to mitigate.

This decision confirms that Nova Scotia courts will not enforce a termination clause that lacks clear, express language limiting entitlement to statutory minimums, and ambiguity will be resolved in favour of the employee.

Read the full decision on CanLII

👤 About the Author:

David Harris — Canadian Employment Law