Notice of termination
Exclusive or near-exclusive economic dependence determinative of dependent contractor status: Ontario Court of Appeal
Between employees and independent contractors exists a third, lesser known category of employment relationship: the dependent contractor. Unlike independent contractors, and subject to specific contractual termination provisions, dependent contractor relationships cannot generally be terminated without notice, or pay in lieu thereof.
Ontario Court of Appeal: Upon termination, employee’s shareholder rights distinct from common law entitlements
In Mikelsteins v Morrison Hershfield Limited, the Ontario Court of Appeal held that an employee was not entitled to compensation over his common law notice period in connection with shares he had purchased under a shareholders agreement.
Calculating the upper end of the range of reasonable notice period for senior employees
The Ontario Court of Appeal observed that calculating reasonable notice is “case-specific” and, while there is “no absolute upper limit or ‘cap’ on what constitutes reasonable notice, “exceptional circumstances” may support a notice period in excess of 24 months.
Are executives entitled to variable compensation after being terminated?
This blog reviews a recent Ontario Court of Appeal decision, Manastersky v. Royal Bank of Canada, 2019 ONCA 609 (CanLII), that considered whether or not an employer can discontinue a variable compensation plan that accounts for about 50% of an executive’s total compensation.
Mass termination and working notice requirements clarified by Ontario Court of Appeal
A recent decision of the Ontario Court of Appeal has clarified employers’ notice obligations in the event of business closure, particularly with respect to mass termination notice requirements under the Employment Standards Act, 2000 (the “ESA”) and “working notice” more broadly.
Major changes coming to the Canada Labour Code
On December 13, 2018, Bill C-86, the Budget Implementation Act, No. 2, received Royal Assent. The Bill sets out substantial changes that affect federally regulated workplaces under the Canada Labour Code.
Alberta Court of Appeal rules on termination clause
The case of Holm in this article is a good reminder of the importance of drafting clear and unambiguous termination clauses and the consequences of failing to do so.
Working notice inappropriate for employees who cannot work
The Ontario Superior Court recently awarded an employee on leave due to disability, damages representing the salary he would have earned had he been able to work during the working notice period set by his employer.
British Columbia Supreme Court rules on reasonable notice when an employee is terminated before their first day of work
In Buchanan v. Introjunction Ltd., 2017 BCSC 1002, the Court considered a case where the employer terminated the plaintiff’s employment before he commenced work. The Court rejected employer’s argument that the probation period clause applied to limit its liability to provide notice of termination of employment.
Probationary period clause gets employer into hot water
Including a probationary period clause in an employment contract is not a good idea unless your organization is prepared to assess the suitability of the employee during the probationary period. Failure to do so can result in your organization being ordered to provide a probationary employee with common law reasonable notice of termination. This blog discusses one such case.
Ontario judge strikes down yet another termination clause
Some employment contracts have termination clauses which state that an employee will receive notice of termination “in accordance with the Employment Standards Act” or words to that effect. The purpose of this clause is to take away the employee’s right to common law “reasonable” notice of termination. In 2000 an Ontario Superior Court judge concluded that this kind of language meant that an employer was only required to provide the employee with the minimum notice of termination stipulated in the ESA. Advantage employers.
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.
An employer’s right when it comes to imposing changes to the employment relationship
At its very core, the employment contract is a very simple one: an individual agrees to work, and the employer agrees to pay them for their effort. Of course, if everything were that simple, then employment lawyers, like myself, would not have very much to do. In addition to the plethora of other issues that can arise, we are often consulted by employers and employees in relation to proposed changes to the contract of employment. The question then becomes: what is an employer’s right to impose changes to the employment relationship/agreement?
Small claims court rules termination clause that violates ESA in future is unenforceable
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.
Employee or contractor? That is the $64,000 question
For over 25 years, clients have been asking me whether a person is an employee or a contractor in various legal contexts.
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