constructive dismissal

To wrap up 2021, we have highlighted key developments in Canadian labour and employment law, with a focus on Ontario:

  1. Bill 27 – Working for Workers Act: On December 2, 2021, the Ontario government passed the Working for Workers Act, 2021 (the “Act“), which introduces significant changes to Ontario’s employment law, including:
    • A Right to Disconnect from Work Policies: Employers subject to the Employment Standards Act, 2000 (the “ESA“) with 25 or more employees must have a written policy which outlines employees’ right to disconnect from work. The term “disconnecting from work” means not engaging in work-related communications (e.g. emails, calls) and not sending or reviewing any messages, so that employees are free from the performance of work outside of normal working hours. Employers have six months from December 3, 2021 to implement the policy.
    • No Non-Compete Agreements: Employers subject to the ESA are prohibited from entering into non-compete agreements with employees. Non-compete agreements are those that prohibit the employee from working for or running a competitive business after the employment relationship has ended.

There is an exception to the prohibition on non-competition agreements in the event of a sale or lease of a business and for executive-level employees.

This amendment to the ESA is deemed to be in force as of October 25, 2021, and all non-compete agreements entered into before this date will remain unaffected. Non-solicitation, confidentiality, and assignment of intellectual property agreements are still permissible.

The Act brings about a number of additional changes that will be relevant for employers, which are fully summarized here.

Continue Reading Top 10 Canadian Labour & Employment Law Developments of 2021

In a recent decision, the British Columbia Supreme Court (“BC Court“) ruled that Canada Emergency Response Benefit (“CERB”) payments earned during the notice period would be deducted from wrongful dismissal damages. This decision stands in stark contrast to that recently issued in Ontario, where the Superior Court of Justice (“Ontario Court“)

Following almost a year of uncertainty, the Ontario Superior Court finally clarified that temporary layoffs during the COVID-19 pandemic can amount to constructive dismissal under the common-law. Ontario employers should take note of this important decision if they have or are considering temporary staffing cuts, including temporary reductions in hours.
Continue Reading COVID Layoffs Can Lead to Employer Liability, Ontario Court Says

The Ontario Superior Court of Justice has reminded employers that terminating a fixed term employment contract early can prove to be expensive.
Continue Reading No Termination Clause in a Fixed Term Contract – A Costly Omission!

We’re pleased to share Jordan Kirkness’s article, here, on the impact to employers of Bill 47, Making Ontario Open for Business Act. The article was published in today’s edition of the Globe and Mail.

If it comes into effect in its current form, Bill 47 will reverse most of Bill 148 (the previous