consideration

What happens to employment contracts when an employer sells the assets of its business?

April 6, 2018 Rudner Law, Employment / HR Law & Mediation Employee Relations, Employment/Labour Standards, Human Resources, Notice, Damages and Settlements, Payroll

The Court of Appeal for Ontario has confirmed that in an asset sale, a purchaser’s offer of employment to a seller’s employee can constitute consideration for changes in an employment contract — including a new termination clause.

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

February 6, 2018 Stringer LLP Employee Relations, Employment/Labour Standards, Human Resources, Notice, Damages and Settlements, Payroll, Recruiting and Hiring, Wages and Compensation

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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Ontario Court of Appeal confirms offer of employment is consideration after an asset sale

November 22, 2017 Simon Heath, BA, MIR, LLB, Heath Law Employment/Labour Standards, Human Resources, Notice, Damages and Settlements, Payroll, Recruiting and Hiring

This case is a useful reminder that in asset sales, as opposed to share purchases, the purchasing employer is not obligated to hire all the vendor’s employees.

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Home renos and employment agreements: How employers can avoid the money pit

March 24, 2017 Rubin Thomlinson LLP Employee Relations, Employment/Labour Standards, HR Policies and Procedures, Human Resources, Notice, Damages and Settlements, Payroll, Pensions and Benefits, Recruiting and Hiring, Source Deductions and Reporting, Wages and Compensation

With home repairs, there is risk in DIY. Similarly, employment agreements require the input of an expert. If you’re not an employment lawyer, don’t try this (i.e. drafting or revising an employment agreement) at home.

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Fresh consideration and employment contracts

November 17, 2016 Simon Heath, BA, MIR, LLB, Heath Law Employee Relations, Employment/Labour Standards, HR Policies and Procedures, Human Resources, Notice, Damages and Settlements, Payroll, Pensions and Benefits, Recruiting and Hiring, Source Deductions and Reporting, Union Relations, Wages and Compensation

When a company promotes an employee, the employer should provide the employee with a new contract to sign prior to allowing the employee to commence his or her duties. In that way, the company is providing the employee with “fresh consideration” to make the contract enforceable. Consideration is the legal word for the exchange of something of value to make contracts enforceable and in a promotion it takes the form of the increased salary that comes with the new job. If the company allows the employee to be promoted and then has the employee sign an employment contract after the promotion has already taken place, there is a chance the employee can argue the terms of the contract that were not discussed pre–promotion should not be enforced for lack of fresh consideration rendering the terms of the contract unenforceable.

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Termination clauses – The legal debate

November 4, 2016 Rudner Law, Employment / HR Law & Mediation Employee Relations, Employment/Labour Standards, HR Policies and Procedures, Human Resources, Notice, Damages and Settlements, Payroll, Pensions and Benefits, Source Deductions and Reporting, Union Relations, Wages and Compensation

It appears that the saga of judicial interpretation and consideration of termination clauses will continue, with predictably unpredictable results. Courts will enforce termination clauses that limit an individual’s entitlement to notice of dismissal, but the onus will be on the employer to show that the clause should be enforced.

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Employment contract law changed in 2015. Have you reviewed yours?

December 10, 2015 Adam Gorley Employee Relations, Employment/Labour Standards, HR Policies and Procedures, Human Resources, Notice, Damages and Settlements, Payroll, Penalties and Fines, Pensions and Benefits, Source Deductions and Reporting, Wages and Compensation

Recent court decisions changed how the law applies to employment contracts, most importantly terminations, but also off-duty conduct, consideration and restrictive covenants. Important lessons from the changes are that employers need to review their employment contracts, you can update them or change their terms while complying with the law, and failing to do so can damage your organization’s finances and reputation.

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Most-viewed articles this week on HRinfodesk

October 10, 2013 Yosie Saint-Cyr, LL.B. Managing Editor Employee Relations, Employment/Labour Standards, Health and Safety, HR Policies and Procedures, Human Resources, Notice, Damages and Settlements, Payroll, Wages and Compensation

The three most viewed articles on HRinfodesk this week deal with an updated version of the 2014 compensation forecast; how the principle of a pay cut without consideration prevails; and the termination of an impaired employee despite mitigating factors.

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Deferred compensation: You can take it with you (sometimes)

September 23, 2013 Earl Altman Employee Relations, Employment/Labour Standards, HR Policies and Procedures, Human Resources, Payroll, Pensions and Benefits, Wages and Compensation

Deferred compensation in the form of future bonuses, retention payments, and stock options has become a standard element of executive compensation. While there are countless variations of such plans, they are all designed to incent employees to remain with their employer, and to perform to the employee’s highest capability while he is there. In order to meet these goals, such plans will often include a deferral of the benefit once it is earned, in order to create an incentive to remain with the employer.

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Most-viewed articles this week on HRinfodesk

July 19, 2012 Yosie Saint-Cyr, LL.B. Managing Editor Employment/Labour Standards, Human Resources, Human Rights

Gender identity and access to women’s washroom facilities Would it be discriminatory to prohibit a pre-operative, male-to-female transsexual from entering a women’s washroom? The answer should be of interest to any employer or business offering services or accommodation to the public. (In PDF) Performance review must take into consideration a person’s disability An employer discriminated […]

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Making your employee handbook enforceable

March 26, 2012 Andrew Taillon Employee Relations, Employment/Labour Standards, Human Resources

A regular issue for employers is whether the provisions in their employee handbook are enforceable in the same manner as an employment contract. Many employers are surprised to find that they are not…

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Employer was permitted to contract out of human rights obligations

July 6, 2011 Christina Catenacci Employment/Labour Standards, Human Resources, Human Rights

I read an interesting case recently that could be considered controversial: an employer was permitted to contract out of its human rights obligations with some vulnerable employees who were at an economic disadvantage and who experienced significant language barriers. How did the employer accomplish this? The employer added a provision in its termination letter that offered the employees consideration in exchange for signing releases preventing them from launching a human rights complaint.

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Enforceable dismissal clauses

August 5, 2010 Rudner Law, Employment / HR Law & Mediation Employment/Labour Standards, Human Resources

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.

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