On November 7, 2019, Bill 124: Protecting a Sustainable Public Sector for Future Generations Act, 2019, received Royal Assent. The Act imposes compensation restraints on certain public sector employees with the aim of giving employers in the broader public sector a measure of predictability as to their future payroll cost increases.
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In City of Toronto v. CUPE, Local 79, the Ontario Divisional Court reaffirmed that employers may provide less compensation to an employee who works reduced hours due to a disability without violating the Human Rights Code (“Code”). In this case, the employer discontinued its past practice of permitting employees working part-time hours to remain in the full-time bargaining unit. The change meant that the grievor, who worked part-time hours as an accommodation for his disabilities, suffered a reduction in his benefit entitlements. The Court held that the reduction to the grievor’s benefit entitlements was not discriminatory under the Code.
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The Ontario Court of Appeal has reiterated that, barring exceptional circumstances, reasonable notice for dismissal without cause will not exceed 24 months. The Court partially overturned the lower court’s decision in Dawe v The Equitable Life Insurance Company of Canada, which also ruled on the enforceability of unilateral changes to the employer’s bonus plan.
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In 2016, the Ontario Court of Appeal confirmed that dependent contractors are entitled to reasonable notice of termination. In a recent decision, Cormier v 1772887 Ontario Limited cob as St. Joseph Communications, (“Cormier“) the Ontario Superior Court of Justice extended this principle – commenting that service as an independent contractor should be considered in calculating the reasonable notice period in certain circumstances.
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On April 3, 2019, Restoring Ontario’s Competitiveness Act, 2019  (Bill 66) received Royal Assent. Bill 66 amends several pieces of legislation in Ontario. The government has stated that the changes are intended to “lower business costs to make Ontario more competitive” and to “harmonize regulatory requirements with other jurisdictions, end duplication and reduce barriers to investment.”
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As we reported in our earlier post, in Merrifield v The Attorney General, 2017 ONSC 1333, the Ontario Superior Court allowed an employee’s claim against his employer and two superiors for the “tort of harassment” and awarded significant damages against the defendants as a consequence. In its decision released today, the Ontario Court of Appeal (“ONCA”) held that there is currently no independent tort of harassment in Ontario, overturning the lower court’s decision. However, the ONCA did not rule out “the development of a properly conceived tort of harassment” that may apply in appropriate contexts.
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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.
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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.
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Overtime class actions are in the headlines again. On February 22, 2019, a class action claim seeking damages of over $100 million was filed against Flight Centre, an Australia-based travel services provider with stores in Canada and internationally. The claim alleges that Flight Centre systematically failed to pay overtime to its retail sales employees, referred to as “travel consultants”, requiring them to consistently work more than their scheduled hours, and implemented policies that fail to comply with the overtime entitlements under employment standards legislation.
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In recent years, Canadian courts have increasingly heard large civil claims against Canadian companies for alleged human rights violations in their foreign operations. As we have discussed previously, judges faced with these claims must determine whether the court’s jurisdictional reach extends to the company’s activities in its global supply chain, thus permitting foreign claimants to pursue their action in Canada.
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