Enforceability of Termination Provisions: ONCA
Two recent Ontario Court of Appeal decisions, Oudin v. Centre Francophone de Toronto, 2016 ONCA 514 (the Supreme Court denied leave to appeal this decision last month) and Wood v. Fred Deeley Imports Ltd.,
2017 ONCA 158, concern the proper interpretation of termination clauses
in employment agreements and, despite the fact that they appear to come
to different conclusions, provide valuable instruction to those
drafting or agreeing to such provisions. In Oudin,
the court looked to the parties’ intentions to interpret and uphold a
provision using non-restrictive language to limit the employee’s
entitlements on termination to the statutory minimums, whereas in Wood, the court invalidated a provision that attempted to expressly contract out of the Employment Standards Act,
but neglected to reference all forms of compensation covered by the
Act, such as benefit plans. For analysis of the decisions see:
Decision clarifies termination clauses – Law Times
Supreme Court of Canada Denies Leave to Appeal in Oudin: But Does That Really Mean Anything? and Court of Appeal Finally Brings Much Needed Clarity to Issue of Benefits in Contractual Termination Provisions – Labour Pains
Is This The Definitive Word on Termination Provisions/Consideration? – Dentons
Contract Enforceability – Koldorf Stam LLP
|
“Dishonesty Invites Termination, But Not Always”: MBLA
The arbitrator exercised his discretion
to set aside the termination of a 20-year Safeway cashier and
substitute a four month unpaid suspension in Sobeys West Inc. v United Food & Commercial Workers, Local 1518,
2016 CanLII 96060 (MBLA), a case which considers, among other things,
the applicable legal principles and relevant facts in alleged sick
leave abuse cases; whether a special rule applies in the retail food
industry dictating discharge as the presumptive consequence for
employee dishonesty, even when theft per se
is not involved; and what exceptional circumstances make discharge
excessive. The employee was alleged to have abused the company’s sick
leave policy by calling in sick for four days while working at her
newly launched restaurant. The employer had previously denied the
employee’s request to take vacation days during the restaurant launch.
While there was prima facie
evidence of sick leave abuse, the arbitrator found that the objective
evidence verified a real medical condition making the grievor unable to
work for the employer and that there was no deliberate plan on her part
to misuse sick leave. Just cause for discipline was found, however, due
to other acts of dishonesty or misconduct by the grievor during the
investigation process. In determining whether discharge was excessive
in these circumstances, the arbitrator noted the importance of taking a
pragmatic, not dogmatic, approach to employee dishonesty and weighing
the traditional mitigating and aggravating factors. In this case, where
the grievor established mitigating facts consistent with restoration of
the key element of trust, the arbitrator found that the employment
relationship had not been irreparably damaged and termination was
therefore excessive.
|
Legislative Update
Federal
Bill C-4, An Act to amend the Canada Labour Code, the
Parliamentary Employment and Staff Relations Act, the Public Service
Labour Relations Act and the Income Tax Act, was referred to the
Standing Senate Committee on Legal and Constitutional Affairs in
December and their report was presented without amendment on February
9, 2017. It is now in third reading before the Senate. It repeals the
amendments previously brought by the former government in bills C-525
and C-377 (making union certification more difficult and requiring
unions to track their spending, among other things).
Bill C-16, An Act to amend the Canadian Human Rights Act and the
Criminal Code, was referred to the Standing Senate Committee on Legal
and Constitutional Affairs on March 2, 2017. It proposes amendments to
the Canadian Human Rights Act to add gender identity and gender
expression to the list of prohibited grounds of discrimination and to
the Criminal Code to extend the protection against hate propaganda to
any section of the public that is distinguished by gender identity or
expression and to affect sentencing on such crimes. For further
information see the legislative summary, departmental information, and
the Slaw article Gender Identity and Gender Expression Protection Under
the Law.
S-201, the Genetic Non-Discrimination Act, as amended by the Standing
Committee on Justice and Human Rights, is now at third reading before
the House of Commons. It prohibits any person from requiring an
individual to undergo a genetic test or disclose the results of a
genetic test as a condition of providing goods or services to, entering
into or continuing a contract or agreement with, or offering specific
conditions in a contract or agreement with, the individual.
Specifically it amends the Canada Labour Code to protect employees from
being required to undergo or to disclose the results of a genetic test,
and provides employees with other protections related to genetic
testing and test results. It also amends the Canadian Human Rights Act
to prohibit discrimination on the ground of genetic characteristics.
Provincial
The government introduced three new bills involving labour and employment issues in March:
Bill 11, The Community Child Care Standards Amendment Act (Staff
Qualifications and Training), was introduced and received first reading
on March 6, 2017. As detailed in the explanatory note, it establishes a
new committee to advise on matters related to staff qualifications.
Bill 12, The Teachers’ Pensions Amendment Act was introduced and
received first reading on March 6, 2017. Its main purpose is to update
provisions of The Teachers' Pensions Act for consistency with changes
to The Pension Benefits Act that came into force in 2010. The
explanatory note provides more detail on the proposed changes.
Bill 13, The Regulated
Health Professions Amendment Act, was introduced and received first
reading on March 7, 2017. It amends The Regulated Health Professions
Act to allow the minister to exempt a health profession from the
statutory prohibition on the online publication of certain health
information about disciplined members. See the explanatory note for
more information.
|
Court Notices and Practice Direction
Recommended Reading
Continuing Professional Development: LSM
Electronic Legal Research for Luddites! -
work in small groups with knowledgeable research assistants assigned to
guide you through the electronic research process at this hands-on
afternoon session at the Law Society classroom on March 23, 2017.
Program materials and light refreshments are included in the registration fee.
Common Practice Issues: How the Code Can Help
– Leah Kosokowsky, Director of Regulation at the Law Society of
Manitoba, will moderate this fast paced webinar designed to demonstrate
how the Code of Professional Conduct
can be a practical problem solving resource in a variety of situations
commonly faced by lawyers, such as withdrawal of retainer, obligations
when changing firms, lawyer duties, and client capacity. The webinar
will be shown from noon to 1:00 pm on April 6, 2017. Discounts up to
50% are offered to group registrants.
Sound Cybersecurity Practices For Your Law Firm – this very
practical lunch program will further your awareness of cybersecurity
risks, and provide you with valuable information about the technologies
and cybersecurity practices you can adopt to reduce these risks. It
takes place April 12, 2017 in the Law Society classroom. Teleconference
registrants receive a group discount.
|
Upcoming Programs: MBA
2017 Accommodation Law Conference
The Centre for Labour-Management Development’s 2017 Accommodation Law Conference
will be held at the Fort Garry Hotel, March 14 and 15, 2017. Local
presenters will explore the latest legal breakthroughs in the duty to
accommodate and their impact on unionized workplaces in Canada. The brochure contains further detail on the course content and registration process.
|
ISSN 1916-3916
|