Employment Law

An employment contract is the central document that binds both parties, by setting out their legal obligations and responsibilities. When a dispute arises, a judge analyzes the contract to try and determine what the parties agreed to. A contract of employment can exist between parties, even if it has not been reduced to writing. After-all, if the employee is performing work, and the employer is paying for the work, there is an agreement between the parties. Employment relationships that are not reduced to writing are often more favourable to the employee, especially because in most cases, a written contract serves…

Employers lay off their employees for a variety of reasons. Whether it be due to lack of work, financial issues, or some other reason, the impact is still the same for employees – loss of work. However, many people do not know whether they can do anything in response to being laid off. This post will outline some of the basic principles relating to layoffs and how employees can respond. What Is a Layoff? Many people believe that a layoff is the same thing as a termination. This is not the case – a layoff refers to an employer reducing…

The answer: Yes. How did we get here? The answer lies in the Court of Appeal for Ontario’s evolving approach to this issue in recent years. A terminated employee’s right to exercise stock options during the reasonable notice period has been an increasingly litigated issue that has been rife with uncertainty. Employers often take the position that the language used in these employee incentive agreements results in their cancellation on the date of termination. Unsurprisingly, employees assert entitlement to all non-discretionary remuneration that was a fundamental part of their compensation. In 2004, the Court of Appeal for Ontario released a…

In Brake v. PJ-M2R Restaurant Inc., the Court of Appeal for Ontario considered two frequent issues in wrongful dismissal actions: constructive dismissal and the duty of an employee to mitigate employment losses by finding alternative employment. The Court found that the trial judge was correct in finding that the employee had been constructively dismissed. Of greater note, the Court confirmed the trial judge’s decision that the employee’s income during the reasonable notice period would not be deducted from the award for damages. The employee was awarded a twenty-month reasonable notice period after working for the employer for twenty years. The…

Classification of employees versus independent contractors is important for several notable reasons. Employees are entitled to statutory benefits and protections under the Employment Standards Act (ESA) such as minimum wage, notice of termination, severance pay and overtime pay. Independent contractors enjoy no such entitlements under the Employment Standards Act for these benefits and protections. In late-2017, the Ontario government amended several aspects of the ESA in the form of the Fair Workplaces, Better Jobs Act, also known as Bill 148. Particularly notable was Bill 148’s tightening of the law with respect to who should be classified as an employee. For…

In order for a termination clause in an employment contract to be considered valid, it must adhere to the minimum standards under the Ontario Employment Standards Act (“ESA”). Many employers include termination clauses to reflect their intention to limit entitlements owed to an employee based on these standards. In order for courts to consider the termination provisions in an employment contract valid, the clause must be drafted in a manner that clearly reflects the parties’ intentions to abide by the ESA’s statutory minimums. This includes addressing issues such as continued payment of employee benefits, severance, providing reasonable notice and payment…

When an employer deliberately misleads or lies to a prospective employee to induce him or her to accept an offer of employment, the employer can be held liable for their negligent misrepresentations. Courts have held that both employers and employees owe a duty of care to each other during the recruitment process. The British Columbia Court of Appeal decision in Feldstein v 364 Northern Development Corporation provided employers with a reminder that negligent misrepresentation during the hiring process can prove to be a costly mistake. In Feldstein, a prospective employee for an engineering position was misled about the eligibility requirements…

Employers must exercise caution when drafting the terms of employment contracts. An improperly drafted provision in an employment contract can have unintended consequences, even if those provisions seem valid at the time the contract is executed. Contract provisions, at minimum, must fall within the minimum standards set out in provincial legislation, both in the present and as the contract endures into the future. The Ontario Employment Standards Act (ESA) provides the minimum standards for most employees in Ontario. The Act establishes rights and responsibilities for employees and employers, including the minimum standards surrounding reasonable notice or payments in lieu of…

In Greenlees v. Starline Windows Ltd., [2018] B.C.J. No. 3074, the British Columbia Supreme Court awarded an employee six months’ notice after working for only six months. Prior to working for Starline Windows, Mr. Greenlees worked for Trevor Jarvis Contracting, earning roughly $100,000 per year as a sales representative. In January 2017, Mr. Greenlees received a cold call from a sales manager at Starline Windows to discuss a job opportunity. Over the course of two meetings, Mr. Greenlees was offered a position working primarily in new residential projects with occasional work in renovation construction projects. The Starline representative estimated potential…