Sunday 4 January 2015

"Don't Forget: You're Here Forever" - Or Are You?

"Don’t forget: you’re here forever." Those five words (seven if you are particular) are said to occupy the plaque above Homer Simpson’s workstation. As regular, and one has to admit older, fans of the iconic television show will remember, in the episode “And Maggie Makes Three”, which originally aired on January 22, 1995, Homer’s boss, Mr. Burns, affixed said plaque above Homer’s workstation after our hero was forced to crawl back to the Springfield Nuclear Power Plant in search of his old, and much despised, job. And while Homer makes the best of the situation, covering certain parts of the plaque with photos of his infant daughter Maggie such that the plaque reads “Do it for her”, the plot point raises an interesting question about employment law in Ontario: Is there such a thing as a job “forever”?

One of the most common misconceptions about employment law in Ontario is that so long as an employee continues to satisfactorily perform his or her job, that employee cannot be fired. As this blog has frequently stated, that simply is not the case and employers generally have the right to terminate an employee’s employment for any reason at all, including no reason. (There are, of course, exceptions, such as the fact that an employer cannot dismiss an employee for a reason prohibited by statute; but those exceptions are few.)

But what if the employee’s employment contract says that the employer “shall not” dismiss the employee? Certainly that would entitle the employee to a job for life. And if the employer did, in fact, dismiss the employee, then she would be entitled to the wages that she would have earned for the rest of her life, no?

A 2003 case from the Court of Appeal for Ontario, authored by the Honourable Justice Rosalie Abella, who now sits on the Supreme Court of Canada, Foreman v. 818329 Ontario Limited, 2003 CanLII 57401 (ON CA) held that the contract term “[The employer] shall not dismiss [the employee]” did not, in fact, entitle the employee to a job for life.

Thursday 1 January 2015

Court of Appeal says Group LTD Policies are not "Business Agreements"

Is a group policy of insurance a “business agreement” for the purpose of ss. 22(5) and (6) of the Limitations Act, 2002? In a reversing an earlier decision of the Superior Court of Justice, Kassburg v. Sun Life Assurance Company of Canada, 2014 ONSC 1523, considered by this blog in the post Time Limit to Sue for LTD benefits, the Court of Appeal for Ontario in the case of Kassburg v. Sun Life Assurance Company of Canada, 2014 ONCA 922 has clearly said that such contracts are not.

Comments on Facebook "Just Cause" for Dismissal

Can posts to one’s Facebook profile about a co-worker be grounds for “just cause” for dismissal? In yet another case from the labour world to consider this subject, United Steelworkers of America, Local 9548 v Tenaris Algoma Tubes Inc, 2014 CanLII 26445 (ON LA), Arbitrator Laura Trachuk has said “yes”.

Wednesday 31 December 2014

Stated Intention to Retire May Reduce Wrongful Dismissal Damages

Can publicly announcing one’s intention to retire from employment serve to reduce an employee’s entitlement to wrongful dismissal damages if the employee is later terminated without cause?

According to a decision from the Ontario Superior Court of Justice, Kimball v Windsor Raceway Inc, 2014 ONSC 3286, an employee’s stated intention to retire and therefore not look for new employment following termination "may well be relevant in assessing what constitutes reasonable notice.”

Monday 29 December 2014

Federal Court says Terminations Without Cause are Not Intrinsically "Unjust"

Did the Federal Court’s decision in Atomic Energy of Canada Limited v Wilson, 2013 FC 733 put an end to federally regulated employees’ complaints of unjust dismissal?

For the reasons that follow, I argue that it did not – although the decision did certainly curtail the opportunity for employees to complain of having been unjustly dismissed.

Sunday 14 December 2014

Judge says 30-Day Notice Provision is Okay

For years this blog has taken the position that if a termination provision in an employment contract does not technically violate the provisions of the Ontario Employment Standards Act, 2000 at the time of termination, but has the potential to do so at other times, it is legally unenforceable at all times. Period. For my earlier commentary on this subject see Poorly Drafted Employment Agreement Proves Costly.

The position and statement of law is premised upon a decision made by the Honourable Justice Wailan Low of the Ontario Superior Court of Justice: Wright v. The Young and Rubicam Group of Companies (Wunderman), 2011 ONSC 4720 (CanLII).

A more recent decision from the same court, this time authored by the Honourable Justice David Price, Ford v. Keegan, 2014 ONSC 4989 (released August 28, 2014) specifically rejects Justice Low’s decision on this point.