So you have an employee who has been working with you for five years, and now you have to terminate the employee because it is just not working out. When parting ways, the employee insists that you should have been paying him overtime pay for all the years he has worked for you – and he wants to claim this alleged outstanding overtime pay, or he will be making a claim for unpaid wages with the Employment Standards Branch for unpaid overtime. How can employers avoid this and other types of overtime claim?
To ensure temporary employment agencies/temporary help agencies are in compliance with the Employment Standards Act, the Ontario Ministry of Labour announced on Friday June 8, 2012, a three-month inspection blitz of temp agencies running form June 2012 until the end of August 2012.
Termination clauses can be void even if only a possibility they could violate Employment Standards Act
As those who read my comments regularly will know, I recommend that every employee be asked to sign an employment agreement that sets out, among other things, the amount of notice or pay in lieu thereof that will be required in the event of a dismissal without cause. Such a provision will eliminate all of the uncertainty that typically arises at the time of dismissal when the parties must assess, negotiate and possibly litigate what “reasonable notice” would be in light of all the circumstances.
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.