Notice of termination
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.
This decision is another reminder to employers to ensure that termination clauses provide for all entitlements prescribed by the Employment Standards Act in order for them to be considered valid and enforceable. The company in this case should never have carved out its obligation to provide statutory Severance Pay.
For over 25 years, clients have been asking me whether a person is an employee or a contractor in various legal contexts.
Even though Ontario judges have been using the same test for 55 years to determine how much notice of termination an employee is entitled to receive, employees and employers continue to disagree on an appropriate notice period in individual cases.
In Meloche c. Structures Lamerain inc., the Court of Appeal recently upheld the Superior Court’s decision to award moral damages, in addition to an award for pay in lieu of notice of termination of employment, to two employees who were dismissed in an abusive manner.
Three popular articles this week on HRinfodesk deal with defaming a former employee; deductibility of membership dues; and, limited notice of termination.
Small to midsize employers, many HR professionals, and many lawyers proceed based upon completely inaccurate understandings of how employment law works. While there are many examples of this, there are three that I see regularly in my practice: the myth that the severance entitlement in Canada is one month per year, regardless of other factors […]
Many employers prepare written employment agreements that limit employee entitlements on termination of employment. In the absence of an enforceable termination provision, employees are entitled to notice of termination at common law, or pay in lieu thereof.
An employee can be required to provide proper notice of resignation. Failure to do so could result in the employee paying damages to the employer.
Ontario’s Employment Standards Act (the ESA) sets out the minimum terms of employment for most employees in Ontario. It is a complex law that is difficult to understand. An employer cannot contract out of these minimum standards. Did you know your organization must post a Minister of Labour poster entitled “What You Should Know About The Ontario Employment Standards Act” in your workplace?
In Allen v Ainsworth Lumber Co Ltd, 2013 BCCA 271, the British Columbia Court of Appeal upheld a lower court decision which held that an employer’s refusal to allow an employee to work during a purported “working notice” period constituted constructive dismissal.
Supreme Court of Canada confirms pension benefits should not be deducted from damages for wrongful dismissal
In the recent decision of IBM Canada Limited v. Waterman 2013 SCC 70 (CanLII), the Supreme Court of Canada confirmed that an employee’s pension benefits should not be deducted from his/her common law entitlement to pay in lieu of notice arising from a wrongful dismissal.