In a recent decision, Dimson v. KTI Kanatek Technologies Inc., the Court of Appeal for Ontario found that the termination provision in an employment contract was enforceable and did not violate the Employment Standards Act, 2000 (“ESA”). At issue were the following contract provisions: Section 18 (c) In addition, [the employer] may terminate this Agreement…
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GM had Contractual Right to Reduce Retiree Benefits of Executives, But Not Other Salaried Employees
In a recent class action motion, O’Neill v. General Motors of Canada, the Ontario Superior Court concluded that General Motors of Canada (“GM”) breached its contract with certain non-executive salaried employees when it reduced their post-retirement benefits after they had retired. The Court found that GM had not clearly and unambiguously reserved its right to…
The Duty to Accommodate and Poor Workplace Performance
What happens when an employee with physical restrictions is placed in a position consistent with those restrictions and provided with sufficient training, but is unable to perform the functions of that position? An Ontario arbitrator recently found that an employee’s inability to perform in such a position was unrelated to her disability, and that she…
OHRC Develops Policy on Removing the “Canadian Experience” Barrier for Job Applicants
The Ontario Human Rights Commission (“OHRC”) recently posted a new policy directive entitled “Policy on Removing the “Canadian experience” barrier” which sets out the Commission’s position as follows: . . . a strict requirement for “Canadian experience” is prima facie discrimination (discrimination on its face) and can only be used in very limited circumstances. The…
Significant decision on establishing “prima facie discrimination” rendered by the Court of Appeal for Ontario
The Court of Appeal for Ontario has rendered a significant decision in Peel Law Association v. Pieters regarding the test for establishing a prima facie case of discrimination. The Court upheld a finding of the HRTO that race and colour were factors in the questioning by a librarian of three applicants (two lawyers and a…
Court Upholds Discharge for Sexual Harassment
In a recent decision, the Ontario Divisional Court found that the discharge of an employee (grievor) who had sexually harassed a co-worker was an appropriate penalty. An arbitrator’s decision reinstating the grievor had relied on irrelevant factors and therefore fell outside the range of possible defensible outcomes. The irrelevant factors considered by the arbitrator included…
Written Notice of Termination Upheld Where Employees Could Not Work during Notice Period
Two disabled employees who were unable to work during a termination notice period were recently provided with written notice of termination under the Employment Standards Act, 2000 (“ESA”), rather than termination pay. At arbitration, they argued that the employer had breached the ESA as well as the Ontario Human Rights Code (“Code”) by failing to…
The Employment Standards Act and Employment Contracts
Employers who are party to an employment contract which stipulates an employee is limited to the minimum statutory entitlements upon termination should be sure that those termination provisions are not offside the Employment Standards Act, 2000 (“ESA”). Otherwise, an employer may find that the provisions are not enforceable and that it is liable for payment…
Significant Punitive Damages Awarded by Saskatchewan Court
In the recent case Branco v. American Home Assurance Company, the Court of Queen’s Bench for Saskatchewan ordered $4.5 million in punitive damages against two insurance companies arising from what the court found to be their “cruel and malicious acts” against an injured worker. The case involved a worker who was injured on the job…
Changes to Temporary Foreign Worker Program Announced
On April 29, 2013, the federal government announced significant reforms to the Temporary Foreign Worker Program (“TFWP”). Jason Kenney, Minister of Citizenship, Immigration and Multiculturalism, commented that the “reforms will require that greater efforts be made to recruit and train Canadians to fill available jobs … [and to] help ensure the Temporary Foreign Worker Program…