This Guide provides American employers with an introduction to employment laws and regulations that affect businesses in Canada. It outlines an overview of the main differences between Canadian and U.S. workplace laws.
Tag: Employment Contracts
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 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…
Ontario Court Finds Investment Firm Liable for Defamation in a Notice Of Termination Filed with IIROC and Orders Correction
The Ontario Superior Court has found that an investment firm defamed one of its former traders when it filed a Notice of Termination (NOT) with the securities regulator indicating the trader’s employment had been terminated for failing to follow trading policies and engaging in unauthorized trading. The Court concluded that there was no cause for…
Ontario Court of Appeal Rules (Again) on the Enforceability of an ESA-Only Termination Clause
The Ontario Court of Appeal has once again considered a minimum entitlements clause in an employment contract and ruled it to be generally enforceable. In Nemeth v Hatch Ltd., an employee with 19 years service was dismissed with 8 weeks’ notice of termination and 19.42 weeks’ salary as severance pay, as well as continued benefits…
Court of Appeal Considers Continuity of Employment Where Employer Purchased Some Assets of Former Employer
In Krishnamoorthy v. Olympus Canada Inc., the Ontario Court of Appeal recently considered the issue of continuity of an employee’s employment following the sale of a business, and in particular, where the sale of business involves the acquisition of only some of the vendor company’s assets. The plaintiff, Krishnamoorthy, became employed with Carsen Group in…
Setting up Shop in Canada? What U.S. Employers Need to Know About Canadian Employment Law
While Canada and the United States are alike in many respects, there are a few key differences in employment law that U.S. employers should be aware of if you are considering buying, selling or operating a business in Canada.
Appellate Court Rules that Severability Clause Can’t Save a Partly Flawed ESA-Only Termination Clause
It is critical for all employers to ensure that they have a well-drafted and unambiguous termination clause which fully complies with the Employment Standards Act, 2000 (ESA), in order to survive judicial scrutiny. The Ontario Court of Appeal has once again weighed in on termination provisions in employment agreements, this time noting that if any…
Benefits Canada Publishes an Article by Thomas Agnew on Termination in Employment Contracts
Hicks Morley’s Thomas Agnew authored an article in Benefits Canada titled “Employers Given Mixed Messages on Termination in Employment Contracts.” Employment contracts often contain clauses limiting an employee’s entitlement upon termination to the minimum entitlements under the Employment Standards Act or any other amount the employer and employee have agreed to. However, if the clauses violate the act in any way, courts may not enforce them.
Fixed-Term Contract Termination Provision Violates ESA, Says Appeal Court
The Ontario Court of Appeal has again weighed in on the issue of termination provisions in employment contracts. By way of background, we recently reported on the February 2017 decision of the Court of Appeal in Wood v Fred Deeley Imports Ltd. In that case, the Court reversed a motion judge’s conclusion that a termination…