Termination after many years of service can be among the most painful events in a person’s life.

Naturally, one would feel entitled to a large payout acknowledging the loss.

CHAUDHRI: Double-dipping loophole in settlement agreements Back to video

But employment law doesn’t work that way. Aside from statutory payments, employees have some obligation to prove their damages after a termination. They should apply for comparable work, with an aim to stop the bleeding.

Knowing some employees will reemploy quickly, some employers try to hive off their liability using clawback clauses.

Take for example the case of Cross v. Cooling Tower Maintenance Inc.

Mitchell Cross worked at Cooling Tower for 26.5 years before he was let go without cause in August 2023. He hired a lawyer, negotiated a deal, and signed a settlement in October 2023.

Generous deal included a clawback clause

The deal was generous. It included salary continuance for up to 24 months at his full base of $183,303, plus bonus, profit sharing, benefits, and a vehicle allowance. It also included a clawback clause. If Cross got a new job before the 24 months ran out, the salary continuance would stop and he would be paid a lump sum equal to half the remaining balance. In exchange, Cross had to tell Cooling Tower as soon as he secured a new........

© Edmonton Sun