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In the recent case of Preston v. Cervus Equipment Corporation, Ontario’s Court of Appeal offered employers a friendly reminder that well-drafted settlement documents will survive judicial scrutiny.

Key Takeaways for Clients

Preston underscores the necessity of clear and precise language in settlement agreements. Employers should use broad and inclusive release language that can encompass a wide range of claims, even those not explicitly mentioned. By carefully drafting settlement agreements, employers can ensure that the settlement documents have the intended effect of concluding the employment relationship without courts stepping in to frustrate the finality of the settlement documents.

Background

The case revolves around the interpretation of a release and indemnity clause in the settlement documents signed by Mr. Preston after his termination from Cervus Equipment Corporation. Mr. Preston was employed by Cervus from 2014 to 2018 and participated in the company’s Deferred Share Plan.

Upon his termination without cause in January 2018, Mr. Preston had 4,964.04 vested stock units valued at $75,949.81 and 4,499 unvested stock units. Cervus informed him that his vested stock units could be exercised according to the Plan and offered him a severance package of 15 weeks’ pay in lieu of notice. The parties then discussed and settled the matter. The settlement documents included a broad release of claims, which Mr. Preston signed after receiving independent legal advice.

Notably, the release language in the settlement documents did not specifically refer to the stock plan and vested stock units in question, but did reference that Mr. Preston was releasing all claims connected to his employment, and that he had no entitlement or claim with respect to any bonus, share award, stock option, or similar plan that his employer had offered to him.Continue Reading Ontario’s Court of Appeal Highlights the Importance of Respecting Broad Release Language in Employment Settlement Agreements

In this 75-minute “quick hits” style session, our team provided practical advice to Canadian in-house counsel and human resources leaders and addressed what to keep top-of-mind for 2024.

Among other topics, we discussed:

  • Implications of Pay Transparency Legislation in British Columbia and
    • …

    Special thanks to our articling student Ravneet Minhas for contributing to this update.

    Federal employers should be aware of recent amendments to the Canada Labour Code, which increased the minimum termination notice period for federally regulated private sector employees.[1] The changes came into force February 1, 2024 and provide employees who have completed at least three years of continuous service with a longer notice period if terminated without cause.

    Previously, employers had to provide a minimum of two weeks’ notice of termination or pay in lieu of notice to an employee who had completed at least three months of continuous employment with the employer.Continue Reading Reminder for Federal Employers: Changes to Termination Notice Period in Effect NOW

    What Canadian Employers Need to Know to Ring in 2024

    In 2023, we helped Canadian employers overcome a host of new challenges across the employment law landscape. Many companies started the year with difficult cost-cutting decisions and hybrid work challenges. We’ve worked hard to keep our clients ahead of the curve on these issues, as well…

    We are excited to share a recent Human Resources Director article, “What HR should know about the latest Working for Workers Act” with insight from Andrew Shaw.

    The article discusses the latest amendments to Ontario’s Working for Workers Act. The most significant updates include the need for employers to include remote workers in their employee…

    Special thanks to our former summer associate Thanusa Sounthararajah for contributing to this update.

    On July 1, 2023, the Employment Standards Act, 2000 (“ESA“), was amended to require temporary help agencies (“THAs“) and recruiters to obtain a license to operate in Ontario as of January 1, 2024. In addition, the Ontario…

    On March 20, 2023, Bill 79, Working for Workers Act, 2023, carried on a first reading in the Ontario legislature. If passed, Bill 79 will significantly amend several employment-related statutes and expand on legislative changes introduced in the Working for Workers Acts, 2021 and 2022.

    Summary of Key Changes

    The most important potential changes include:

    • Mass Termination: Employees who work remotely from home will be included in the count for mass termination provisions under the Employment Standards Act, 2000 (“ESA“). The result is that remote employees will receive the same eight-week minimum notice of termination or pay-in-lieu as their in-office colleagues. Currently, the meaning of “establishment” under the mass termination provisions only encompasses the physical location at which an employer carries on business, and does not include an employee’s private residence. If Bill 79 is passed as currently drafted, the proposed amendments to the mass termination provisions will come into force on the later of July 1, 2023, or the date on which Bill 79 receives Royal Assent.
    • Health and Safety: The maximum fine that may be imposed on a corporation convicted of an offence under the Occupational Health and Safety Act will increase from $1.5 million to $2 million.
    • Reservist Leave: The Employment Standards Act, 2000 will be amended to entitle an employee who is in treatment, recovery or rehabilitation in respect of a physical or mental health illness, injury or medical emergency that results from participation in certain operations or activities to reservist leave. Further, reservists who are deployed to emergency operations inside Canada will be entitled to take this leave immediately regardless of the length of their employment, and the length of employment required to take this leave for all other reasons will be reduced from three months to two months.
    • Personal Information in Post-Secondary Education: Section 15 of the Ministry of Training, Colleges and Universities Act will be amended to permit the collection, disclosure and use of personal information for purposes related to certain employment programs and services. This includes disclosing personal information to persons or entities that administer, evaluate or deliver employment programs or services funded by the Ministry of Labour, Immigration, Training and Skills Development for the purpose of administering and delivering those programs or services.
    • Temporary Foreign Workers: The Employment Protection for Foreign Nationals Act, 2009 will be amended to increase penalties employers and people who are convicted of taking possession of or retaining a foreign national’s passport or work permit. For individuals, the penalty will increase to a fine of not more than $500,000 and/or imprisonment for a term of not more than 12 months. For corporations, the penalty will increase to a fine of not more than $1,000,000.
    • Job Information Transparency: Employers will be required to provide employees starting a new job with information about their job, such as pay, work location and hours of work, and the date by which that information needs to be provided. These draft regulations have not been published yet, but we will continue to monitor this significant amendment closely.

    Continue Reading Bill 79, Working for Workers Act, 2023 Carries on First Reading, with Potential for Major Changes Ahead

    We are pleased to share a recent Benefits Canada article, “Employers can’t rely on original termination clauses when employee responsibilities increase: court,” with quotes from George Avraam. A recent Ontario Court of Appeal decision upheld a motion judge’s award of over $400,000 to an employee on the basis of the changed substratum doctrine. The case…

    Special thanks to Sarah Adler, Immigration Legal Counsel.

    Our webinar was designed to bring Canadian in-house counsel and human resources leaders up to speed on the top labour, employment and human rights law developments of 2022 and to prepare them for what’s on the horizon in 2023.  

    Using our “quick hits” format, we…

    To wrap up 2022 and prepare for 2023, we highlighted key developments in Canadian labour and employment law:

    1. COVID-19 Update

    Workplace Vaccination Policies

    Mandatory vaccination policies remained a prevalent issue in 2022. The first decisions to provide guidance on this topic came out of unionized workplaces, with many upholding vaccination policies.

    In Toronto District …