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At common law, employers have a right to terminate an employment relationship, subject to reasonable notice of termination. When an employer breaches this implied duty, employees are entitled damages for wrongful dismissal, which presumptively include damages for lost incentive compensation unless an employer unequivocally ousts that right in an employment agreement or incentive plan. In Matthews v. Ocean Nutrition Canada Limited, the Supreme Court of Canada confirmed that absent “absolutely clear and unambiguous” language in the employment agreement or the incentive plan restricting such entitlement, incentive compensation is considered part of the damages owed in lieu of common law reasonable notice. Continue Reading SCC Reminds Employers of the Costly Implications of Imprecise Language in Incentive Compensation Plans

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Earlier this summer, several Ontario municipalities established bylaws requiring businesses to ensure masks or face coverings are worn by the public in enclosed public spaces (see our earlier article here). On October 3, 2020, the Ontario government amended the Rules for Areas in Stage 3, O Reg 364/20 (the “amended regulation”), establishing similar requirements for most Ontario businesses, summarized below.

Who Must Wear Masks or Face Coverings?

Generally speaking, businesses and organizations must ensure that anyone located in an indoor area within their premises, or within a vehicle that is operating as part of the business or organization, wears a mask that covers their mouth, nose, and chin.

Continue Reading Ontario Amends Mask and Face Covering Requirements for Businesses

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The Ontario Government now requires most Ontario businesses and organizations to implement a workplace screening tool that requires staff members and essential visitors to complete a medical questionnaire before entering the workplace each day. This new requirement is established under the Reopening Ontario (A Flexible Response to COVID-19) Act, 2020 and became effective on September 26, 2020. Continue Reading New COVID-19 Workplace Screening Requirements for Ontario Businesses

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After almost six months of school closures across Ontario due to the COVID-19 pandemic, school is now back in session for most students. The provincial government’s education model includes a voluntary back-to-school regime that provides parents and students with the option to engage in online learning from home or to have children physically attend at school. With recent cases of COVID-19 on the rise this fall, outlined below is a summary of what employers should be aware of regarding their obligations to accommodate employees with children that are not attending in-person school or childcare.[1] Continue Reading Back to School: An Employer’s Obligations to its Parental Employees

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The Ontario Government amended a previous regulation to extend deemed infectious disease emergency leave (“IDEL”) under the Employment Standards Act, 2000 (the “ESA”) until January 2, 2021.

This is an update to our previous blog post, Ontario Files New ESA Regulation Affecting COVID-19-Related Leaves, Temporary Layoffs & Constructive Dismissals, where, on May 29, 2020, the Ontario Government filed a new regulation changing the rules regarding employee eligibility for IDEL, temporary layoffs and constructive dismissals under the ESA. The regulation retroactively “deems” non-union employees who were not performing their duties, working reduced hours, or receiving reduced wages (at the employer’s behest) to be on IDEL.

Previously, the regulation dealt with the time period beginning March 1, 2020 and ending “six weeks after the declared emergency ends.” The Government has called this the “COVID-19 Period.” However, the Ontario Government has now extended this “COVID-19 Period” to January 2, 2021.

Continue Reading Ontario Amends ESA Regulation Affecting COVID-19-Related Leaves, Temporary Layoffs & Constructive Dismissals by Extending COVID-19 Period

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Bill C-20, An Act respecting further COVID-19 measures, received Royal Assent on July 27, 2020. Please see our previously published article summarizing notable changes to the Canada Emergency Wage Subsidy program here.

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On July 17, 2020, the federal government announced that it would extend the Canada Emergency Wage Subsidy program (“CEWS”) until December of 2020, and proposed several significant changes that will, among other things, allow more employers to access subsidies.

On July 20, 2020, the federal government introduced Bill C-20, An Act respecting further COVID-19 measures, to extend and adapt the CEWS program. On July 21, 2020, Bill C-20 received its third reading, and is expected to receive royal assent very soon. If passed, Bill C-20 will retroactively impact the CEWS program, generally commencing with the fifth qualifying period which commenced on July 5, 2020 (subject to a “safe harbour” discussed below). Continue Reading Federal Government Extends & Amends Canada Emergency Wage Subsidy Program

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Starting July 7, 2020, the City of Toronto will require businesses to ensure masks or face coverings are worn by the public in their enclosed public spaces.

Key Takeaways
  • The City of Toronto’s bylaw will come into force on July 7, 2020. It is currently set to expire on or about October 1, 2020, but may be extended.
  • The new bylaw will generally apply to all indoor spaces within the City of Toronto that are openly accessible to the public. The bylaw will not require individuals to wear masks or face coverings in workplaces that are not openly accessible to the public will not be required.
  • A list of public spaces exempted from the bylaw can be found here: https://www.toronto.ca/home/covid-19/covid-19-what-you-should-do/covid-19-orders-directives-by-laws/mandatory-mask-or-face-covering-bylaw/
  • Under the bylaw, there are exceptions for individuals who are unable to wear a mask or face covering for medical reasons, and for children under two years old. There are further exceptions for individuals who are, for example, eating a meal or engaging in athletic or fitness activity.

Continue Reading Many Municipalities Make Masks Mandatory

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As of January 1, 2021, the new stand-alone Work Place Harassment and Violence Prevention Regulations (the “Regulations”) will come into force to ensure employers prevent harassment and violence in federally regulated industries and workplaces. The Regulations will apply to all federal work places covered under Part II of the Canada Labour Code (the Code), including the federally regulated private sector, the federal public service and parliamentary work places. It will replace Part XX (violence prevention) of the Canada Occupational Health and Safety Regulations (COHSR), as well as portions of two other regulations that include violence prevention provisions.

Key Takeaways

Once the Regulations come into force, employers must:

  1. Prepare the workplace harassment and violence prevention policy working jointly with the policy committee, the workplace committee, or the health and safety representative;
  2. Assess the risk of workplace harassment and violence;
  3. Inform and train employees, and participate in training themselves;
  4. When an incident of harassment or violence is reported, respond within seven days;
  5. Keep records on every incident of harassment and violence in the workplace and report annually to the Labour Program; and
  6. Implement corrective measures in response to the investigation report of an investigator to prevent future occurrences of harassment and violence.

Continue Reading New Workplace Harassment and Violence Prevention Regime for Federally Regulated Employers

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On June 26, 2020, the Supreme Court of Canada released its decision in the highly publicized case of Heller v Uber Technologies Inc. The case arises from a Toronto-based UberEATS driver’s effort to bring a $400-million class action against Uber, on behalf of Uber and UberEATS drivers in Ontario. Mr. Heller alleged that Uber violated the Employment Standards Act, 2000 by treating Uber and UberEATS drivers as independent contractors and failing to provide them with employment-related entitlements like minimum wage, vacation, and overtime pay.

The issue before the Court was the validity of an arbitration clause in a standard form service agreement. The agreement was governed by the law of the Netherlands and required drivers to litigate their disputes with Uber in the Netherlands. Uber required all of its prospective drivers to enter into this agreement by having them accept the terms through their app. The Court ruled in favor of the drivers, finding that the arbitration clause was unconscionable because its terms effectively made it effectively impossible for the drivers to arbitrate their claims.

As a result of the decision, the class action can proceed to a certification motion.

Key Takeaways

Employers with arbitration clauses in their employment contracts or independent contractor agreements must revisit their agreements to determine whether they continue to be valid in Canada. Based on the Court’s decision, employers should not have arbitration clauses that require employees to pay substantial upfront fees to initiate the process. Employers should also consider whether they should pay the administration fees required for private arbitration, subject to the company’s right to a refund of those fees if it is successful in arbitration. If employers choose to keep arbitration clauses, they should ensure that in-person hearings remain local.

Continue Reading Supreme Court of Canada Invalidates Uber Arbitration Clause in $400-Million Class Action