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No At-Will Employment in Canada

Are you an employer with operations in both Canada & the US? This post is for you.

Contracts vs At-Will Employment

For our US readers, Canada does not have at-will employment. In Canada, employment relationships are governed by employment contracts, either written or implied, and various employment laws and regulations. Employers are generally required to provide reasonable notice or pay in lieu of notice when terminating an employee without cause.

For our Canadian readers, at-will employment is a term used in the United States to describe the employment relationship between an employer and an employee, where either party can terminate the employment at any time, with or without cause, and with or without notice. This means that an employer can fire an employee for any reason or no reason at all, as long as it is not for an illegal reason (such as discrimination). Similarly, an employee can quit their job at any time without providing a reason or notice.Continue Reading No At-Will Employment in Canada

Update Employment Contracts Following Substantial Changes to the Job

With St. Patrick’s Day having just passed, many of us start to bank on luck at this time of the year. While luck might get you to the end of the rainbow on some things, we wouldn’t recommend that you lean on luck when it comes to non-existent, outdated or incomplete employment contracts. 

The Consequences of Leaving it up to Luck

First, in case you’re new here or need a quick refresher, employment contracts are often recommended by lawyers and adopted by employers to bring a level of certainty to the employment relationship. Employment contracts can achieve a variety of things but generally, they set out the responsibilities and expectations of the employee and employer. If the employment relationship is bound by provincial employment standards legislation (it usually is), then the contract has to, at the very least, uphold the minimum standards of the applicable legislation. 

If your employment contract runs afoul of the applicable employment standards legislation by failing to uphold the minimum standards as required by the law, your contract could be deemed unenforceable. Contracts could also be found to be unenforceable if they fail to comply with the principles of contract law. Continue Reading Don’t Leave it to Luck: Update Employment Contracts Following Substantial Changes to the Job

Common Contracting Mistakes Made by EmployersEnsuring that you have succinct, legally compliant, and up-to-date contracts in place is one of the most important things an employer can do to start off on the right foot with a new employee.  It also helps to avoid legal headaches down the road, should the employment relationship not work out.

Bosses and managers are busy and budgets can be tight, leading businesses to sometimes cut corners when it comes to contract templates. Below are 5 of the most common contracting mistakes employers make that can come back to bite them later.
Continue Reading 5 Common Contracting Mistakes Made by Employers

In the recent Court of Appeal decision in Kosteckyj v. Paramount Resources Ltd. 2022 ABCA 230 (CanLII), the court considered the possibility that specific timelines could be imposed on employees for voicing dissatisfaction with unwelcome changes to the terms of their employment if they want to subsequently argue that they’ve been constructively dismissed.

What Typically Triggers a Constructive Dismissal Claim?

Constructive dismissal arguments often follow unilateral changes made to an employment agreement by the employer.  When an employee alleges a constructive dismissal after a change, they’re essentially saying that the change cuts so deeply to the core of the employment relationship that they’ve been forced to leave: “I’m quitting, but you made me! … and by the way, you have to now compensate me as if you’d fired me.”
Continue Reading How Long Can an Employee Dispute Compensation Changes?

Unlimited Paid Time Off Policies - Proceed with Caution!We’ve been hearing about unlimited paid time off  (PTO) for some time, but it is not yet a common trend in Canada. However, from time to time in our employment law practice, we encounter employers who offer unlimited or unstructured time off to their employees.

At first glance,  unlimited PTO may sound wonderful and generous, and employers may offer it to foster a positive workplace culture and promote work-life balance. However,  without addressing potential issues via contracts and policies, offering unlimited and unstructured time off could cause more headaches than benefits for both the employers and the employees. 
Continue Reading Unlimited Paid Time Off Policies – Proceed with Caution!

Non-Compete Clause Update
Photo by Leon Seibert on Unsplash

In a recent post, we talked about Ontario’s then-proposed and now law ban on non-compete agreements in employment contracts under Bill 27, Working for Workers Act, 2021 (“Bill 27”). The ban was effective as of October 25, 2021. Initially, there was some confusion about the enforceability of non-compete agreements or clauses entered into prior to the introduction of Bill 27. The Superior Court of Justice has recently released its decision for Parekh et al. v. Schecter et al., which clarifies that enforceable non-compete clauses entered into before October 25, 2021 will not be impacted by the ban and can be upheld. 
Continue Reading Non-Compete Clause Update

We’ve written about terminations in several of our blog posts throughout the years. Some of our employer readers (and clients) may recall scrambling to update their employment contracts following the 2020 release of Waksdale v. Swegon North America Inc. (2020 ONCA 391). Still, many employers who are seeking to terminate their indefinite-term employees on a without cause basis believe that as long as they provide their employees with 2 weeks of notice, or the period of notice set out in the Employment Standards Act, 2000, they are off the hook. More often than not, this notice period is legally insufficient. So, what is the applicable notice period? 
Continue Reading Firing Employees with 2 Weeks of Notice May be Insufficient

Workplace Law Trends for 2022
Photo by BRUNO EMMANUELLE on Unsplash

Welcome to 2020 Two! It’s hard to believe we’ve been living through a pandemic for nearly 2 years. Workplaces are beyond worn out, stress leaves and harassment complaints continue to increase, parents are juggling remote learning and limited activities for kids once again, and many workplaces struggle to find people to fill the roles. 

Yes, it’s all a bit of a mess, but out of crisis emerge new ways to approach issues and novel solutions to traditional problems. Here are our predictions for workplace law trends and changes in 2022.

#1 – Push for Hybrid and Remote Working

Studies over the last year are showing a deep disconnect between senior bosses and employees about preferred workplaces. Increasingly, employees want – and now expect – at least some remote work option, whereas senior levels of management are more likely to continue to see in-person work better for productivity, mentoring and focus.
Continue Reading Workplace Law Trends for 2022

update your employment contracts
Photo by Cytonn Photography on Unsplash

Why Employment Contracts are Good

Our readers are probably sick of hearing us go on about employment contracts, but we will never stop recommending them!

An employment contract gives both employers and employees certainty about their entitlements both with respect to compensation and also on exit. 

Whether terms are written down or not, employment relationships will be governed by various terms. In the absence of a contract, courts read in implied terms of employment from the common law. It’s better to get those terms written down so you actually know what they are and don’t have to wait for a judge to tell you! 
Continue Reading Why you should update your employment contracts and why January is a good time to do so

free employment contract checklistAre your Employment Contracts Up-to-Date for 2022?  Not sure where to begin? 

Get a copy of our FREE Employee Contract Checklist

The checklist outlines affordable DIY contract options for small employers:

  • brainstorm what needs to be included in your contracts
  • cross-reference with any contracts you may already have in place
  • identify areas to add, remove and/or update

Continue Reading Get our free Employment Contract Checklist