The Ontario Superior Court of Justice recently upheld a termination clause in an employment contract which limited entitlements upon termination to the minimum available under the Employment Standards Act, 2000 (ESA) but which did not make explicit reference to the continuation of benefits during the statutory notice period. In Burton v. Aronovitch McCauley Rollo LLP,…
Publication Name: Case In Point
Court of Appeal Outlines Key Principles On Suspending Employees With and Without Pay
In Filice v. Complex Services, the Ontario Court of Appeal provided valuable guidance regarding constructive dismissal, investigative suspensions of employees without pay and proper damages assessments. The plaintiff/respondent in appeal was employed by Complex Services (the defendant/appellant) as a Security Shift Supervisor at Casino Niagara and Fallsview Casino. All employees in the Casino’s Security Department…
Requiring Proof of Eligibility to Work in Canada on a Permanent Basis Discriminatory
In a recent decision released by the Human Rights Tribunal of Ontario, the Tribunal found that an employer discriminated against a potential employee on the basis of citizenship when it required proof of eligibility to work in Canada on a permanent basis as a condition of employment.
Appeal Court Rules on Termination Clauses and Proper “Failsafe” Language
The differing interpretations by the courts of employment contract provisions which limit entitlements upon termination has caused considerable confusion of late. The Ontario Court of Appeal has rendered a helpful decision which may serve to lessen some of the confusion. The Court reversed a lower court decision and found that a clause in an employment…
Must Exercise Termination Rights Under Independent Contractor Agreement in Good Faith, Appeal Court Rules
In the recent case Mohamed v. Information Systems Architects Inc., the Ontario Court of Appeal determined that the appellant company failed to exercise its termination rights under an Independent Consulting Agreement (ICA) in good faith. As a result, they were liable to pay to the independent contractor (respondent) the amount owing for the remainder of…
Pay Equity Compliance: An Update from the Supreme Court of Canada
The Supreme Court of Canada recently rendered two decisions in two separate cases pertaining to Quebec’s Pay Equity Act (Act) that serve as a reminder to all employers of the importance of complying with their governing pay equity legislation. The Act came into force in 1996 to address systemic discrimination against women and to ensure…
Nova Scotia Court of Appeal Finds Benefit Plan Can Exclude Medical Marijuana
The Nova Scotia Court of Appeal recently confirmed that an administrator of a benefit plan may choose what specific drugs and medications will be covered by a plan, and in particular, held that the exclusion of medical marijuana is not discriminatory under human rights legislation. In Canadian Elevator Industry Welfare Trust Fund v. Skinner, an…
Court Invalidates ESA-Only Termination Clause, Again
In King v DST Systems, the Ontario Superior Court again struck down an Employment Standard Act, 2000 (ESA)-only termination clause – this time for not mentioning benefits.
Court Finds Emails Between Management and HR Department Not Privileged
A Master of the Ontario Superior Court of Justice recently rejected an employer’s assertion that emails between management and its Human Resources (HR) department were privileged and therefore not subject to disclosure in a constructive dismissal action. He stated that if “management seeks confidentiality in dealing with an employee, it should consult with counsel and…
Court Orders Employee Who Breached Fiduciary Duty to Pay Former Employer $20 Million
An Ontario Court recently awarded damages of $20 million for breach of fiduciary duty to Atlas Copco Canada Inc. (Atlas), from a former employee, in Atlas Copco Canada Inc. v. Hillier. The employee (Defendant) had been employed with Atlas as a general manager of one of its divisions and later as a vice-president. The fraudulent…