“There are far, far better things ahead than any we leave behind. “ C.S. Lewis Dear Friends, Welcome back from the summer! We hope that all of our readers had a chance to get in some rest and relaxation with friends and family over the past few months, and we are sure that you…
Practice Area: Litigation
Ontario Court Upholds Forfeiture-On-Resignation Provision of Equity Incentive Plan
In a decision released on September 12, 2013,[1] the Ontario Superior Court of Justice upheld the enforceability of a provision of an employer’s incentive compensation plan pursuant to which unmatured awards are forfeited upon an employee’s resignation. The Court held that the provision was a permissible loyalty incentive rather than an unlawful restraint on trade….
Alberta Court of Appeal Upholds Conviction in Calf-Roping Machine Case
In its decision Alberta v. XI Technologies Inc., the Alberta Court of Appeal upheld the conviction of XI Technologies in relation to the death of an employee who was operating a faulty calf-roping machine at an employer hosted-event, concluding that the employer failed to do all that was reasonably practicable to avoid the foreseeable risks…
Dismissals Under the Canada Labour Code
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….
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…
GM Benefits Plan Language Did Not Allow Reduction After Non-Executives’ Retirement; GM Plans Appeal
Justice Belobaba of the Ontario Superior Court of Justice has found that General Motors of Canada (“GMCL”) breached its contract with certain retired non-unionized salaried employees when it reduced their post-retirement health care and life insurance benefits. On this motion for partial summary judgment, the Court held that, in the reservation of rights (“ROR”) clause…
Majority of SCC Finds Employer Exceeded its Management Rights in Implementing Random Alcohol Testing Policy
Today, a majority of the Supreme Court of Canada upheld an arbitration award which concluded that a random alcohol testing policy for use in a safety sensitive workplace was not justified. In the absence of evidence of an existing workplace alcohol use problem, it concluded that a dangerous workplace was not, on its own, reason…
Is it Appropriate to Reinstate an Employee Whose Employment Was Terminated as a Result of Sexual Harassment?
In Professional Institute of the Public Service of Canada v. CEP, Loc. 3011, the Ontario Divisional Court concluded it was not. The grievor, a mail room clerk with six years seniority, tried to kiss a female cleaner. When she pushed him away, he grabbed her buttocks. The female worker reported the incident and stated that…
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…
Proposed Class Action Dismissed: OLRB has Exclusive Jurisdiction
On May 9, 2013, the Ontario Superior Court dismissed a proposed class action brought by unionized employees who alleged that they were constructively or wrongfully dismissed following a plant closure by their employer, Navistar. Collective agreements had expired two years prior to the plant closure. The Court held that the continuation of the collective bargaining…