When a company purchases another business, it is important to consider the legal implications respecting the status of employees. The Ontario Superior Court recently decided a case regarding the validity of an employment contract where an employee had signed an agreement with his former employer but never executed a new agreement when the company was purchased by another business. The plaintiff argued that the employment contract only governed the previous employment relationship. The Court disagreed, finding that the terms of the employment contract still applied.
An employee left work early for an emergency dental appointment without notifying her employer. Should the employee be terminated immediately?
The Ontario Superior Court of Justice just decided that although an employee was constructively dismissed when he was suddenly “laid off,” the employer did not owe the employee any damages because he failed to mitigate his loss.
In a recent decision from the Alberta Court of Queen’s Bench, the judge considered the rights of an employer to claim compensation for an employee who had allegedly stolen a business idea. The facts of the case are not unique; indeed, they arise frequently in the give-and-take between employer and employee.
Despite being one of the most basic and fundamental legal protections employers can have, many employers do not use written employment agreements when they hire new employees.
One crucial piece of advice that I offer to employers is to have every single employee sign an employment agreement that, if nothing else, sets out what will happen in the event of dismissal without cause. The reason for this suggestion is simple: without a contractual dismissal provision, an employer’s obligations in the event of dismissal without cause are unpredictable and often extensive.