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employment contracts

Termination clause update: New developments concerning benefit continuation and just cause language

We are not long into 2019 and yet one thing already seems clear – the law concerning employment contract termination clauses will continue to be the focus of a great deal of litigation in Ontario. In just the past few months alone, new decisions from the Superior Court have helped to advance the law and provide further guidance to employers on proper drafting of termination clauses.

 

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Differences between executive and non-executive employment contracts

Executive employment contracts are drafted, unusually, in favor of the employee, rather than the employer as is the case in 99% of all non-executive employment contracts. This is not unreasonable, however.

 

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Business purchasers use employment contracts to try to ‘cover their assets’ – Can it work?

In the case of Krishnamoorthy v. Olympus Inc., was the offer of employment by the new employer adequate consideration, thus creating a new binding contract?

 

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Employee vs independent contractor: The dangers of misclassification

It is essential that employers understand and consider the risks of misclassifying employees as contractors, even when the individual themselves is the one requesting or proposing the contractor relationship.

 

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Startup employment contracts

Canadian startups and any company for that matter should have an employment contract for all new hires. An employment contract helps both parties understand the employment relationship, protects the start up in the event of the termination of employees and it can also serve as a useful mechanism to attract good employees.

 

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Non-competition clauses – Language should be clear and unambiguous

Employers should avoid using language that may introduce ambiguity and is broader than necessary to protect the employer’s legitimate interest. Courts will not fix a clause that they find to be ambiguous or overreaching

 

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Three popular articles this week on HRinfodesk

The three popular articles this week on HRinfodesk deal with the interpretation and enforceability of termination clauses, changes and improvements to services, benefits and credits for Canadians for the new tax filing season and improved ways for businesses to meet their reporting obligations.

 

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Consideration: What’s good for the goose is good for the gander

The facts of this case are extremely unique. We more commonly see the courts using the doctrine of consideration to deny employers the ability to enforce restrictive termination clauses imposed after employees have already commenced working. However, the ruling gives employers hope that, if the circumstances were sufficiently extreme and an employee’s behavior egregious, the courts will apply the doctrine of consideration to an employer’s advantage.

 

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Top five cases of importance to Ontario employment law – 2017 edition

2017 has been an incredibly busy year for Ontario employment law practitioners. In addition to the changes to the common law brought about by the decisions considered in this post, one would be foolish to omit any reference to the sweeping changes recently ushered in by the Wynne government as a result of the Fair Workplaces, Better Jobs Act, 2017, S.O. 2017 C.22 (“Bill 148”).

 

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Top 5 mistakes employers make in their contracts

Employment contracts are a useful tool for employers. But often, employers make mistakes when creating their contracts. Here are five of the main mistakes to watch out for.

 

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Online HR resources: Tips for more effective use

Why reinvent the wheel? Drafting employment contracts, policies, termination letters and releases based on a past precedent is often a good place to start. It is usually both time and cost efficient, and for someone unfamiliar with the document, it’s a great learning opportunity. When using a precedent or online resource, here are the top 3 tips to ensure the document is legally enforceable in your workplace.

 

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Why bother with employment contracts?

I had a client recently ask why he would bother going through the cost and efforts of doing up an employment contract, if he was going to have to fight with ex–employees’ lawyers and pay out a package in a without cause situation anyway. Good question.

 

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Employment contracts may need to be amended because of a recent Court of Appeal decision

Bonus plans in employment contracts are a great way to motivate, reward and retain employees. Many of these bonus plans have built–in conditions that must be met before these bonuses are paid out. For example, an employee must be actively employed at the time the bonus is paid. Increasingly, the courts are being asked to determine whether these conditions have to be met and whether a bonus is owing. A recent decision by the Ontario Court of Appeal will come as a surprise to many of you.

 

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Arbitrator upholds just cause termination in part on negative Facebook post

Social media has become entrenched in our society and millions of employees use it on a daily basis. However, employees are warned that making negative comments about their employers on social media can have significant repercussions. Arbitrator Norm Jesin recently upheld a just cause termination, in part, because the Grievor had made negative comments about the employer on Facebook after his employment had been terminated.

 

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Top four tech tips for terminations

As technology continues to overhaul the workplace and drive change, what remains the same is the emotional uncertainty of termination. Neither the employee, nor the person tasked with conducting the termination, enjoy that awkward meeting.

 

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