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Susan MacMillan is a Knowledge Lawyer in the Employment & Compensation Group in Toronto. Susan is passionate about exploring new developments in Canadian and global employment law and their implications for employers. Prior to joining Baker McKenzie, Susan had a broad employment law practice at a full-service, national firm. She was also seconded to a Canadian chartered bank as Legal Counsel in the bank’s Employment Law Group. Susan holds an LL.M. from the University of Toronto where her thesis focused on the interaction between seniority rights and the duty to accommodate.

This is part two in our series on recent Ontario Superior Court decisions that employers should be aware of before finalizing future employment agreements. See here for our first part, on the recent trend of lengthy notice period awards for long service employees of advanced age.

As most employers know, unenforceable termination clauses often give rise to costly wrongful dismissal claims. Yet the case law in this area is constantly evolving, and it is increasingly challenging to stay abreast of what a court will consider to be enforceable.
Continue Reading Defining “Cause” in a Termination Provision: Mind Your Language!

The #MeToo and Times Up movements have led to significant cultural shifts and a collective call to action to end sexual harassment and related forms of exploitation. Since many of the high profile allegations involved abuse of power and quid pro quo demands in the context of employment relationships, the impact on employers has been profound.
Continue Reading Not Just South of the Border: Canadian Employers Should Expect More Gender-Based Disputes

To mark International Women’s Day, we’re pleased to share an article from our US colleagues on recent efforts to close the gender pay gap, including salary history bans in the US and global efforts toward transparency reporting. The article, authored by Todd BoyerCaroline Burnett and Elizabeth Ebersole, can be accessed here.

This is the first of our two-part series on recent Ontario Superior Court of Justice decisions that employers need to be aware of before finalizing their next employment agreement. The decisions highlight the risk of failing to include an enforceable termination provision in the employment agreement. Absent such a provision, an employee dismissed without cause will be entitled to “reasonable notice” of termination at common law.

In this first part, we examine two recent decisions of the Court that suggest that the Court now favours longer notice periods for long service employees of advanced age: Dawe v Equitable Life Insurance Company, 2018 ONSC 3130 (Dawe) and Saikaly v Akman Construction Ltd., 2019 ONSC 799 (Saikaly). Until recently, 24 months was generally considered as the upper limit of notice entitlement that courts would award absent exceptional circumstances.
Continue Reading Dismissing a Long Service Employee of Advanced Age May Prove to be More Costly

Although brevity is almost always better than wordiness, it would have been better if the legislature had used a few more words in the severance pay provisions of Ontario’s Employment Standards Act, 2000. Under the ESA, employers with a payroll of at least $2.5 million are required to provide statutory severance pay when dismissing an employee with 5 or more years of service. Unfortunately the provision is silent as to whether payroll within Ontario or, rather, global payroll is determinative. It would have been helpful if the drafters had indicated where, exactly, to draw the line.

The pendulum has swung back and forth on this issue. Most recently, the Ontario Labour Relations Board (“OLRB”) held that Ontario-only payroll is determinative, diverging from the direction previously taken by the Ontario Superior Court of Justice. We outline the key cases to date below.
Continue Reading Statutory Severance Pay: Ontario Labour Relations Board Decides $2.5M Threshold Does NOT Include Payroll Outside Ontario

On December 13, 2018, Bill C-86, the Budget Implementation Act, 2018  received Royal Assent. Bill C-86 has a wide ambit given that it primarily implements the February 2018 federal budget plan. Among other things, Bill C-86 makes numerous amendments aimed at “modernizing” the labour standards in the Canada Labour Code (“CLC”). To help federally regulated employers navigate the many changes to the labour standards, we have outlined the key changes to be aware of and what to do about them.
Continue Reading “Modernized” Federal Labour Standards: Key Changes & What to Do About Them

The Ontario government introduced Bill 66, Restoring Ontario’s Competitiveness Act  (“Bill 66”) on December 6, 2018. If passed, Bill 66 will make amendments to several pieces of legislation in Ontario. The government has stated that its objective in introducing these changes is to “lower business costs to make Ontario more competitive” and to “harmonize regulatory requirements with other jurisdictions, end duplication and reduce barriers to investment.” We outline below the proposed changes to the province’s labour and employment legislation below.
Continue Reading Ontario’s War on “Red Tape” Continues: PC’s Table Bill 66

On November 15, 2018, the Ontario government introduced legislation to, among other things, delay the January 1, 2019 in force date of the Pay Transparency Act, 2018  (“Act”). Bill 57, Restoring Trust, Transparency and Accountability Act, 2018, is omnibus legislation to enact, amend and repeal various statutes and is currently at the Second Reading stage.
Continue Reading Ontario Proposes Delay & Rethinking of Pay Transparency Act

On November 21, 2018, Bill 47, Making Ontario Open for Business Act, 2018  (“Bill 47”), passed Third Reading and received Royal Assent. Bill 47 repeals or rewrites numerous provisions of the previous government’s Fair Workplaces, Better Jobs Act, 2017  (“Bill 148”). To help employers navigate and prepare for the many changes under Bill 47, we have summarized the key changes and what is left intact.
Continue Reading Ontario’s Bill 47 Gets Green Light

On October 23, 2018, the Ontario government introduced Bill 47, Making Ontario Open For Business Act, 2018, to repeal numerous provisions of the previous government’s Fair Workplaces, Better Jobs Act, 2017  (Bill 148). The government indicated that the proposed amendments are designed to “remove the worst burdens that prevent Ontario businesses from creating jobs while expanding opportunities for workers.” We outline the key provisions of Bill 47 below.
Continue Reading Ontario Government Introduces Bill 47 to Reverse Most of Bill 148