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common employer

Three popular articles this week on HRinfodesk

Three popular articles this week on HRinfodesk deal with the recently released T4 slip; the expansion of EI sickness benefits; and, the ‘common employer’ doctrine.

 

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Can an employer be liable to an employee for previous service to a related employer?

Rule of law

In unionized industries and in particular the construction sector, there are well established rules governing when multiple companies can be considered a single employer under the law. Dozens of multiple employer applications per year are brought in Ontario alone.  The same cannot be said about common employer determinations in the non-unionized sector. However, a recent case heard by the Ontario Superior Court of Justice dealt with such a situation.

 

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Case clarifies what is meant by ‘common employer’

The Ontario Superior Court of Justice recently decided that an employee was wrongfully dismissed and entitled to $20,363 in damages. The problem was that the damage award was made against two companies that were no longer in operation and without assets to pay the judgment. A related company that did have assets to pay the award was found not to be a common employer and was thus not liable.

 

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