Case snapshot
At a glance
- Case
- Can Ontario Courts Hear Your Employment Claim Against a Foreign Employer?
- Court / Tribunal
- Court of Appeal for Ontario
- Citation
- 2026 ONCA 549 ↗
- Date
- July 29, 2026
- Area of law
- Employment Law
- Key issue
- Whether an Ontario court has jurisdiction over an employment dispute with a foreign employer, and whether a forum selection clause in an employment contract can override Ontario's Employment Standards Act.
- Outcome
- The Court of Appeal allowed the appeal, set aside the stay, declared the forum selection clause void, and found that an employment relationship existed under the ESA, with the action to proceed in Ontario.
- Why it matters
- If you work in Ontario for a foreign company, this ruling confirms that Ontario courts can hear your employment claim even if your contract says disputes must go elsewhere.
Legal principle
The rule from this case
Under Ontario's Employment Standards Act, 2000 (ESA), a clause in a contract that strips away ESA rights — including the right to sue in Ontario — is void and unenforceable. The Supreme Court of Canada's decision in Heller confirmed this principle, and the Court of Appeal applied it here: if a forum selection clause would effectively deny a worker their ESA protections, it cannot stand. To decide whether someone is an employee or an independent contractor, Ontario courts apply the factors from Belton v. Liberty Insurance: who controls the work, whether the worker is integrated into the business, who supplies tools, whether the worker has a chance of profit or risk of loss, and whether the worker works exclusively for one party. Holding shares in a company does not automatically mean you are not also its employee — the motion judge's error was treating shareholder status as if it answered the employment question.
Important limits
What this does not mean
This decision does not mean that every foreign company operating in Ontario will automatically lose a jurisdiction challenge. Courts still apply the Van Breda framework to ask whether there is a real and substantial connection between Ontario and the dispute. If the work was performed elsewhere and the alleged breach occurred outside Ontario, the result could be different. This ruling also does not mean that all independent contractor arrangements are shams. The Belton factors must be applied carefully to the actual facts of each working relationship. Owning shares in an employer does not settle the question either way — it is simply one fact among many that a court will weigh.
Can you sue a foreign employer in Ontario if your contract says you can’t?
Yes — if you performed your work in Ontario and your rights under the Employment Standards Act, 2000 are at stake, an Ontario court can hear your claim, and a contract clause pointing you to a foreign court may be void. That is the core message from the Court of Appeal for Ontario’s decision in Pringle v. Zenova Group PLC, 2026 ONCA 549 (CanLII), released July 29, 2026. Read the full decision here.
What is a forum selection clause and why does it matter?
A forum selection clause is a contractual term that requires disputes to be resolved in a specific place — often a foreign country. It matters because if a court enforces it, you may have to pursue your claim thousands of kilometres away, at enormous cost, effectively making it impossible to vindicate your rights.
In this case, the contract pointed disputes to England. The motion judge initially stayed the Ontario action, meaning the employee would have had to go to England to pursue any claim. The Court of Appeal reversed that decision.
When is a forum selection clause void under Ontario law?
A forum selection clause is void when it would strip away rights guaranteed by Ontario’s Employment Standards Act, 2000. The Supreme Court of Canada’s decision in Heller v. Uber Technologies Inc. established that section 5 of the ESA nullifies any contractual provision that purports to waive or reduce a statutory entitlement — including the right to access an Ontario forum.
Here, requiring the worker to litigate in England would have made it practically impossible to enforce ESA rights. The Court of Appeal confirmed that the forum selection clause was unenforceable on that basis alone.
Does owning shares in a company mean you are not its employee?
No — being a shareholder does not automatically disqualify you from also being an employee of the same company. The motion judge made an extricable error of law by treating shareholder status as if it resolved the employment question. The Court of Appeal identified this as a legal error that required a fresh analysis.
The correct approach is to apply the Belton factors: who controls how the work is done, whether the worker is integrated into the business, who provides tools and equipment, whether the worker bears a real risk of financial loss or has a meaningful chance of profit, and whether the worker is economically dependent on one party. Shareholder status is simply one piece of context — it does not override the analysis.
How does Ontario establish jurisdiction over a foreign employer?
Ontario courts use the Van Breda framework, which asks whether there is a real and substantial connection between Ontario and the dispute. Two connecting factors were decisive here: the services were performed in Ontario, and the alleged breach — the termination — occurred in Ontario.
A defendant can reasonably expect to face a lawsuit in the place where the work was done. Modern technology also makes it easier for witnesses and documents to be accessed remotely, which weakened the argument that England was a more convenient forum.
What is forum non conveniens and did it apply here?
Forum non conveniens is the legal principle that allows a court to decline jurisdiction if another forum is clearly more appropriate. It is a high bar — the party seeking a stay must show that the alternative forum is clearly better, not just somewhat more convenient.
The Court of Appeal found that England was not clearly more appropriate. The employment services, the alleged just cause for termination, and the termination itself were all connected to Ontario. The location of witnesses and documents was considered neutral given modern technology. The stay was set aside and the action will proceed in Ontario.
Practical takeaways for employees working for foreign companies in Ontario
- Your ESA rights travel with you. If you perform work in Ontario, Ontario’s minimum employment standards apply — even if your contract says otherwise.
- Forum selection clauses can be challenged. A clause requiring you to sue in another country may be void if it would prevent you from enforcing ESA rights.
- Shareholder status is not a bar to employee status. If you hold shares in your employer, you may still be an employee entitled to notice, severance, and other protections.
- Where the work happened matters most. Ontario courts are likely to accept jurisdiction when services were performed here and the termination occurred here.
- Get your contract reviewed before signing. A clause buried in a contract can have major consequences if your employment ends. Our Ontario employment lawyers can review your agreement before you sign.
If you are in the Hamilton or Burlington area and working under a contract with a foreign company, speaking with a local employment lawyer early can prevent costly surprises later. Our Burlington employment law team and Hamilton employment law team regularly advise employees on cross-border employment arrangements.
UL Lawyers Professional Corporation offers a free initial consultation from our Burlington office and serves clients across Ontario. If you have questions about your employment contract, your status as an employee, or whether Ontario courts can hear your claim, reach out to our employment law team to discuss your situation.
This article is automated commentary on a public court decision and is for general information only — not legal advice. Decisions rely on facts unique to each case. If you are affected by a similar issue, contact a lawyer for advice specific to your situation.
FAQ
Frequently asked questions
Possibly yes. If you work in Ontario and your rights under the Employment Standards Act are at stake, a clause requiring you to sue abroad may be void and unenforceable. An Ontario court can still hear your claim.
Ontario courts look at factors like who controls your work, whether you are integrated into the business, who supplies tools, and whether you bear a real financial risk. Holding shares in the company or signing a contract that calls you a contractor does not settle the question on its own.
Ontario courts will accept jurisdiction if there is a real and substantial connection to Ontario — for example, if you performed your work here and the termination happened here. The fact that the employer is based abroad does not automatically move the case to a foreign court.