On September 26, 2012, the government announced draft omnibus legislation, the Protecting Public Services Act, 2012 (the “Draft Bill”), that would implement new, substantially more restrictive compensation restraint measures, and impose a significant new provincially mandated collective bargaining regime, for the Broader Public Sector (“BPS”).
Business Operation: Ontario
Court Pierces Corporate Veil in “Common Employer” Case
Justice Gray of the Ontario Superior Court recently reviewed the common employer doctrine within the context of a Mareva injunction motion. In Kingston v. GMA Cover Corp., the plaintiffs had been employed by GMA Cover Corp. in Guelph. For tax reasons, the business underwent a complex reorganization and ultimately was acquired by a United States-based trust….
New PSFA Regulation Filed – Deductions From Wages
On September 21, 2012, the Ontario government filed a new regulation under the Putting Students First Act, 2012. O. Reg. 282/12 (Orders to Reimburse Boards – Deductions From Wages) applies with respect to the deduction, under subsection 9 (6) of the PSFA, from an employee’s wages for amounts the employee is required to reimburse to…
Federal Government Introduces Helping Families in Need Act
On September 20, 2012, the federal government introduced Bill C-44, the Helping Families in Need Act, legislation that would, if passed, amend (among other things) both the Employment Insurance Act (“EI Act”) and the Canada Labour Code as follows: the EI Act will provide for a new specified sickness benefit for parents receiving EI parental…
Court of Appeal Finds Insurance Producer Breached Agreement to Pay for his Book of Business
In a recent decision, the Ontario Court of Appeal found that an insurance producer breached his oral agreement with his brokerage that he would pay 50 percent of the fair market value of the book of business if he took it with him when departing. The Court ordered that the producer pay the broker for…
Discipline, Not Termination, More Appropriate in Case of Single Incident of Misconduct
In a case that has garnered much attention, Barton v. Rona Ontario Inc., the Ontario Superior Court has found that discipline of a managerial employee would have been a more effective sanction than termination where that employee, in a single incident of misconduct, breached the employer’s health and safety rules. At the time of the…
Bill 115, Putting Students First Act, 2012 Passes Third Reading
On September 11, 2012, Bill 115, Putting Students First Act, 2012, passed at Third Reading, as amended by the Standing Committee on Social Policy. The Act will come into force on a day to be proclaimed by the Lieutenant Governor. For background information on the Putting Students First Act, please see our FTR Now of…
Survivor Benefits Amendments Proclaimed in Force October 1, 2012
On September 8, 2012, amendments to section 44 of the Pension Benefits Act were proclaimed in force effective October 1, 2012. Specifically, the amendments clarify (1) that survivor benefits can be reduced on the death of either spouse, and (2) that consent will be required in order to commute small survivor benefits where the member…
Family Caregiver Leave Bill Passes Second Reading, Referred to Committee
On September 6, 2012, Bill 30, Family Caregiver Leave Act (Employment Standards Amendment), 2011 carried at Second Reading and was referred to the Standing Committee on Social Policy. As previously reported, Bill 30 would, if passed, amend the Employment Standards Act, 2000 to create Family Caregiver Leave. The leave would be available to all full-time,…
Federal Wage Restraint Legislation Does Not Infringe Section 2(d) of Charter
Underscoring once again that section 2(d) of the Canadian Charter of Rights and Freedoms (“Charter”) only guarantees a meaningful process of collective bargaining and not a particular result, the Ontario Court of Appeal recently found that wage restraint legislation effectively prohibiting salary increases over a five-year period was not, in and of itself, unconstitutional. Association…