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,…
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Important Direction on Restrictive Covenants from the Court of Appeal for Ontario
Restrictive covenants in an employment context are intended to control an individual’s competition and conduct in relation to her employer’s business after the employment relationship ends. These covenants will only be upheld by the courts if they are reasonable as between the parties and reasonable in light of the broader public interest in discouraging restraints…
Carrigan v. Carrigan Estate Update: Ontario Pension Regulator Supports Common-Law Spouse’s Appeal
As first discussed in our FTR Now of November 7, 2012 “Ontario Court of Appeal Decision Rewrites the Pension Pre-Retirement Death Benefit Regime“, the decision in Carrigan v. Carrigan Estate fundamentally altered the interpretation of spousal rights and priorities relating to payment of pre-retirement death benefits. The Court of Appeal awarded the pre-retirement death benefit payable under…
Proportionate Approach Necessary to Determine Whether Just Cause Exists
The Court of Appeal for Ontario recently confirmed that a proportionate approach must be taken in determining whether a single incident of misconduct by a long-serving employee with a relatively unblemished work record should result in dismissal for cause. In Plester v. PolyOne Canada, the plaintiff failed to lock out a machine prior to working…
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…
Supreme Court of Canada Renders Decision in Indalex
Today, the Supreme Court of Canada rendered its long-awaited decision in Sun Indalex Finance, LLC v. United Steelworkers. The decision contains important findings with respect to, among other matters, the fiduciary duties of plan administrators, the reach of the statutory deemed trust provisions of the Ontario Pension Benefits Act, and the priority given to pension…
Ministry of Labour to Target Health Care Workplaces for Safety Inspections
The Ministry of Labour (“MOL”) has announced a safety blitz targeting health care workplaces in the months of February and March. MOL inspectors will conduct inspections to check on issues related to workplace violence and harassment. In this FTR Now, we review some steps you can take to ensure your workplace is compliant with its…
Unjust Dismissal in the Context of an Employment Contract Notice Provision
Does an employee who has left the bargaining unit and entered into a binding contract with an employer have access to the unjust dismissal provisions of the Canada Labour Code when his employment is terminated? In a recent case, an adjudicator answered no: the terms of the contract were clear regarding termination, the employee was…
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…
Ontario Court Provides Useful Guidance to Employers on Supervision and Training Obligations
The Ontario Court of Justice recently overturned a trial decision which convicted an employer of various infractions under the Occupational Health and Safety Act, finding that numerous errors of law had been made. Of interest for employers is the Court’s conclusion an employer is not obligated to provide training to a worker regarding a specific…