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…
Publication Name: Case In Point
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…
Appellate Court Confirms Employer not Liable for Defamation for a Negative Reference Where the Reference is True
The Divisional Court has affirmed that an employer is not liable for defamation where a candid and truthful reference about a former employee has been provided. In Papp v Stokes et al, the plaintiff had sued his former employer (Stokes Economic Consulting) and its President (Ernest Stokes) for defamation, wrongful dismissal, punitive, exemplary and aggravated…
Court Finds Employer Took Appropriate Steps to Change Terms of Employment – No Constructive Dismissal
In Lancia v. Park Dentistry, the Ontario Superior Court found that an employer who wished to change the terms of employment did not constructively dismiss a long-term employee because she was provided with 18 months’ working notice as well as a new contract with a signing bonus. The plaintiff worked as dental hygienist for the…
Appellate Court Finds Employee Entitled to Bonus Which Vested after the End of the Notice Period
In Bain v. UBS Securities Canada Inc., the Ontario Court of Appeal upheld a lower court decision which awarded an employee who was dismissed without cause in February 2013 his bonus entitlements for 2012 and the first three months of 2013, as well as for the 18-month notice period. David Bain worked for UBS as…