In a recent decision, Atomic Energy of Canada Limited v. Wilson, the Federal Court considered the unjust dismissal provision of the Canada Labour Code (“Code”) and concluded that it does not prohibit federally regulated employers from conducting without cause dismissals. This decision arose out of an unjust dismissal complaint under section 240 of the Code….
Category: Employment Law
OCA Affirms Termination Clause in Employment Contract Does Not Violate ESA
The Court of Appeal for Ontario has upheld a motion judge’s finding that a termination provision in an employment contract was not an attempt to contract out of the Employment Standards Act, 2000 (“ESA”). In Dimson v. KTI Kanatek Technologies Inc., the plaintiff had been terminated and in accordance with his employment contract, he was…
Drafting Termination Provisions in Employment Contracts
Two cases of the Ontario Superior Court serve as reminders that termination provisions in employment contracts must be compliant with the Employment Standards Act, 2000 (“ESA”) for all purposes; otherwise they may be found void and unenforceable by a court. In the first decision, Wright v. Young and Rubicam, the Court found that while a…
New High Water Mark for Punitive Damages Award: $4.5 Million
A recent decision of the Court of Queen’s Bench for Saskatchewan, which granted an injured worker $4.5 million in punitive damages, has garnered considerable media attention. The plaintiff, Mr. Branco, was a Canadian citizen. He sued his employer (Kumtor, owned by Saskatchewan-based Cameco) and insurers AIG and Zurich Life in relation to benefits arising from…
Alberta Court of Appeal Considers Restrictive Covenants and Fiduciary Duties
In Evans v. The Sports Corporation, the Alberta Court of Appeal provides some important guidance on what classes of employees will be considered fiduciaries and what type of conduct will constitute solicitation of clients. Richard Evans was employed for six years by The Sports Corporation (“TSC”) as a sports agent responsible for TSC prospects and…
Court of Appeal for Ontario Finds Restrictive Covenants Unreasonable and Unenforceable
In Martin v. ConCreate USL Limited Partnership, a decision released yesterday, the Court of Appeal for Ontario determined that the restrictive covenants included in sale of business agreements were unenforceable. Among other things, the Court found that the duration for the covenants was unreasonable because it was “for an indeterminate period, and there is no fixed,…
Court of Appeal Upholds Finding that One Health and Safety Violation Did Not Constitute Just Cause for Termination
In its recent decision Plester v. PolyOne Canada Inc., the Court of Appeal for Ontario found that one violation of a health and safety rule did not constitute just cause for the termination of a long term supervisory employee. The plaintiff was employed as a line supervisor and had worked for the employer for 17…
An Employment Contract, A Without Cause Termination and the Availability of “Unjust Dismissal” Protection
Klein and The Royal Canadian Mint, a recent adjudication award made under the Canada Labour Code, affirms the proposition that the unjust dismissal provisions do not protect all employees from termination without cause, particularly where such terminations are conducted in accordance with a binding employment contract. In this case, the complainant had signed an employment…
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….
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…