The government of Ontario announced today that it will introduce new legislation to require certain employers to track and publish their compensation information. The proposed legislation is part of the province’s initiative to advance women’s economic status and create more equitable workplaces (the initiative is titled “Then Now Next: Ontario’s Strategy for Women’s Economic Empowerment”). Today’s announcement comes on the heels of last week’s budget plan in which the federal government outlined proposed proactive pay equity legislation that would apply to federally regulated employers – see here for our article on the proposed federal legislation.
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Alberta and Ontario Courts Diverge on Termination Clauses
A recent decision of the Alberta Court of Appeal adds further confusion to the issue of the enforceability of termination clauses. In Holm v AGAT Laboratories Ltd, 2018 ABCA 23 (“Holm“), the Alberta Court of Appeal (“Court”) held that explicit language must be included in a termination clause to oust an employee’s common law rights.
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Bill 148: Key Changes & What to Do About Them
Ontario employers face a number of new challenges in 2018 as a result of the Fair Workplaces, Better Jobs Act, 2017 (“Bill 148”). To help employers navigate the many changes under Bill 148, we have outlined the key changes that employers need to be aware of. We have also indicated planning actions to consider in view of these changes.
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Is a Discretionary Bonus Really Discretionary?
Many employers rely on the discretionary nature of their bonus plans to deny bonuses to employees they’ve dismissed. However, in last month’s decision in Singer v Nordstrong Equipment Limited, 2017 ONSC 5906, the Court held that stipulating that a bonus is discretionary in the policy doesn’t necessarily give the employer complete freedom to withhold the bonus. Rather, discretionary bonuses must be awarded through a “fair, identifiable process.”
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Court of Appeal Rules Termination Clause Valid on Sale of Business
We are pleased to report that the Ontario Court of Appeal has reaffirmed the principle that a purchaser of the assets of a business is free to offer employment on new terms to employees of the vendor and can rely on the resulting written employment agreement as binding (Krishnamoorthy v. Olympus Canada Inc., 2017 ONCA 873).
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Severability Clause Cannot Save Illegal Termination Provision, Court of Appeal Rules
In its recent decision in North v. Metaswitch Networks Corporation, the Ontario Court of Appeal concluded that a severability clause could not be used to “rewrite” or “read down” a termination provision to make it comply with the Employment Standards Act (the “ESA”). Instead, the Court of Appeal held, where any part of a termination clause is void, the entire provision must be struck and the severability clause becomes inoperative. This case is a reminder to employers that there are no shortcuts when it comes to drafting your employment agreements—termination provisions must be carefully drafted to limit termination liability without breaching local employment standards.
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Employees Now Able to Sue for Workplace Harassment
We recently wrote about new requirements for employers to implement comprehensive policies, programs, and investigative procedures to address workplace harassment under the Occupational Health and Safety Act (“OHSA”) ‒ see our blog post here. Failing to comply with the OHSA can result in a substantial fine. Employees now also have a green light to bring a civil action in relation to workplace harassment as a result of a recent decision by the Ontario Superior Court of Justice.
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Early Approval Across Party Lines for ESA & LRA Amending Legislation
We recently wrote about the Ontario government’s proposed changes to the province’s employment standards and labour relations legislation – see our blog posts here and here. On June 1, 2017, the Minister of Labour, the Honourable Kevin Flynn, introduced legislation to affect these changes.
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Ontario Set to Make Significant Changes to Labour Relations Act
Further to our recent blog post about the Ontario government’s reform of the employment standards legislation through The Fair Workplaces, Better Jobs Act, 2017, employers can also expect significant changes to the legislation governing unionized workplaces. The key changes proposed in respect of Ontario’s Labour Relations Act (“LRA”) concern union certification, bargaining unit structure, first contracts, just cause protection, return-to-work rights and procedures, successor rights, and fines for individuals and organizations, which are summarized below.
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Ontario Responds Quickly to Strengthen ESA
The Ontario government has announced that it will introduce legislation, The Fair Workplaces, Better Jobs Act, 2017, in the coming days to reform the province’s employment standards legislation. The announcement follows last week’s release of the Changing Workplaces Review Final Report which contained a myriad of recommendations for reforms to benefit employees.[1]
The key changes to the Employment Standards Act, 2000 (“ESA”) that the government has indicated will be included in the proposed legislation are summarized below.
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