What's In A Release Anyway?

A recent decision from Ontario's Court of Appeal (Swampillai v. Royal & Sun Alliance Insurance Company of Canada, 2019 ONCA 201) confirms a release signed by an employee should only be overturned for unfairness with clear evidence of a lack of fairness.

What Happened?

The employee was a labourer who became disabled and unable to work. The employee applied for and received short term disability ("STD") benefits. When the STD benefits ran out, the employee applied for long-term disability ("LTD") benefits. His application was denied by the insurer providing LTD benefits. The employee hired a lawyer to assist him with an appeal of that denial.

The employee's employment was terminated a month later, and he was offered a severance package. As part of the offer, the employee was required to sign a release of...