Court Rules that Calculation of Severance Under ESA is not Limited to Ontario Payroll

In Hawkes v Max Aicher, the Divisional Court set aside an Ontario Labour Relations Board (OLRB) decision and found that the calculation of payroll for the purposes of determining an employee’s severance entitlement under the Employment Standards Act, 2000 (ESA) should be based on the combined payroll of the Ontario employer and its global parent…

Appellate Court Considers Contractual Rights Upon Termination in Light of Ocean Nutrition and Affirms Original Decision

In Mikelsteins v. Morrison Hershfield Limited, the Ontario Court of Appeal confirmed its earlier finding that an employee’s common law entitlements upon termination of employment are distinct from any rights the employee may have under a shareholder agreement where they have purchased the shares separate and apart from their compensation structure.      Background In June…

Ontario Government Announces Extension of Temporary Relief from ESA Termination and Severance Provisions

On Thursday, September 3, 2020, the Ontario government announced that it would be extending the temporary relief measures from the termination and severance provisions of the Employment Standards Act, 2000 (ESA) until January 2, 2021. The temporary measures are found in Ontario Regulation 228/20, Infectious Disease Emergency Leave (IDEL Regulation), and had been set to expire today (September 4, 2020). The IDEL Regulation has been amended to define the “COVID-19 period” as that period beginning on March 1, 2020 and ending on January 2, 2021

FTR Quarterly – Issue 15

In This Issue: Protection in the Face of Employee Fraud, Key Human Resources Decisions in in 2019 and Cases to Monitor in 2020 and more!

Appellate Court Considers Contractual Rights Upon Termination

The Court of Appeal recently considered the issue of an employee’s contractual rights versus his common law rights upon the termination of his employment. In Mikelsteins v. Morrison Hershfield Limited, the defendant employer appealed a partial summary judgment that had awarded the plaintiff, a former employee, an increased value for shares that had been bought…

Appellate Court Overturns Summary Judgment Decision that Former Employee Owed $20m in Damages to Employer; Matter Remitted for Trial

The decision of a summary judgment motion judge who ordered a former employee to pay his former employer $20 million in damages has been overturned by the Court of Appeal. In Plate v. Atlas Copco Canada Inc., the Court held that the motion judge erred when he found a trial was not necessary and proceeded…

A Cautionary Tale: Appellate Court Upholds Judgment Against Employer for Punitive Damages, Aggravated Damages and “Unusually High” Costs

In Ruston v. Keddco MFG. (2011) Ltd., 2019 ONCA 125 (CanLII)(Keddco), a unanimous Court of Appeal for Ontario upheld a substantial damages and costs award against an employer that breached its “duty of good faith and fair dealing in the manner of dismissal.” The Keddco decision serves as an important reminder for employers across Canada…

Appellate Court Considers Employment Issues Arising out of a Termination Post-Sale of Business

In Kerzner v American Iron and Metal Company Inc., the Ontario Court of Appeal considered a number of complex issues arising out of a sale of business and successive employment contracts entered into after that sale. The Court provided guidance on what can and cannot be agreed to during those transitions and how releases should…

OLRB Finds Global Payroll not to be Considered in Calculation of ESA Severance Pay

In Doug Hawkes v. Max Aicher (North America) Limited, the Ontario Labour Relations Board (OLRB) addressed the issue of whether an employer’s global payroll should be considered in determining an employee’s entitlement to severance pay under the Employment Standards Act, 2000 (ESA). The OLRB determined that global payroll should not be included for the purposes…

Cause Termination Upheld Where Employee Found to Have Installed Spyware on Employer’s Computer

The Ontario Superior Court of Justice recently upheld a cause termination where an employee was found to have installed spyware onto his employer’s computer. The Court also considered the availability of the “after-acquired cause” defence In Sankreacha v. Cameron J. and Beach Sales Ltd., the plaintiff’s employment as a service advisor in the automotive department…