Rahman v Cannon: Common Employer & Termination Clause Updates Part II

In a previous blog post, we wrote about the recent Rahman v. Cannon Design Architecture Inc case. Here’s a recap of the Ontario Court of Appeal’s decision:

  • an employee’s level of sophistication has no bearing on whether a termination clause is enforceable
  • the language in with-cause termination provisions needs to be carefully worded and abide by requirements in the Employment Standards Act (“ESA”)

And more importantly: 

  • subsidiary and parent companies of an employer can be considered “common employers” if there is a certain level of integration between the companies, making them jointly and severally liable to the employee 

In this blog post, we will dive deeper into the Court’s finding that the three respondent companies were common employers. 

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All About Probationary Periods

It takes a lot to hire and onboard new employees. As much as you intend to keep each and every one of your new hires, there may be a new employee you hired not too long ago that just isn’t working out. What do you need to know before you let them go?

What is a Probationary Period?

At common law, a clear meaning has generally been attached to the term “probationary employee”. Unbeknownst to many employers, however, the terms “probation” or “probationary period” do not actually appear in the minimum standards legislation of many Canadian jurisdictions. Nonetheless, many of these pieces of legislation do exclude employers from having to give employees a specified amount of notice of termination if the employee has not accumulated a specified amount of service with the employer (typically around 3 to 6 months). For convenience, we will be referring to this amount of service as probation or the probationary period. 

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Soaring Inflation Rates and Deflated Wages

Soaring Inflation Rates and Deflated Wages

As inflation rates have soared in recent months, the impact has been felt by employers and employees alike. According to Statistics Canada, Canada’s inflation rate, now at 7.7%, has skyrocketed at the fastest pace in almost 40 years. This is the highest rate since 1983. 

In an ideal world, wages would keep up with rising inflation rates. Currently, this is not the case across many industries.  

Why wages can’t keep up?

The relationship between inflation, wages and business costs is circular and intertwined. Due to inflation, both the costs of living and the costs of doing business are drastically increasing, making wage increases for many businesses challenging or, in some cases, unsustainable. If a company is able to invest in higher wages, they likely have to increase the prices of their products and/or services to account for their overhead. Thus a further increase in the cost of living.

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Update: Infectious Disease Emergency Leave (IDEL)

IDEL update: What's Changed & What Do Employers Need to Do? With the welcome easing of COVID-19 restrictions in Ontario – from masking requirements to vaccine mandates – it’s been a while since many employers have had to turn their minds to the Infectious Disease Emergency Leave (IDEL). When the IDEL was first introduced, we were faced with an array of questions from employers. Since then, the IDEL has been through several updates and expansions. This blog discusses the most recent update to the IDEL.

Paid IDEL

What’s Changed?

Paid IDEL has now been extended to July 31, 2022. The Ontario COVID‑19 Worker Income Benefit (“Benefit”), which came into effect April 29, 2021, amended the Employment Standards Act, 2000 (“ESA”) and required employers to provide paid IDEL to eligible employees. It was previously set to end on December 31, 2021. 

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Rahman v Cannon: Common Employer & Termination Clause Updates

Common Employer & Termination Clause Updates: Rahman vs CannonDoes the employee’s level of contract knowledge make a contract more enforceable? Who is on the hook for termination pay if a company has subsidiary or parent companies? 

The Ontario Court of Appeal recently answered these questions in Rahman v. Cannon Design Architecture Inc. The bottom line of the decision is:

  • an employee’s level of sophistication has no bearing on whether a termination clause is enforceable
  • the language in with-cause termination provisions needs to be carefully worded and abide by requirements in the Employment Standards Act (“ESA”) 
  • subsidiary and parent companies of an employer can be considered “common employers” if there is a certain level of integration between the companies, making them jointly and severally liable to the employee. 
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Keeping Up With the Current “Hot Job Market”

Current “Hot Job Market”: How Employers Can Keep UpDealing with both employees and employers daily, we are constantly hearing and seeing how “hot” the job market is right now. Yet employers, in particular, are finding it increasingly difficult to find workers. We are seeing this clear across the board, from the restaurant and retail industries to the corporate world. So, who is the job market “hot” for? And, how can employees and employers take advantage of this scorching time?

What’s Happening with the Job Market? 

The labour market, while hot, is also very tight right now. The unemployment rate is at an extreme low and job vacancies are at an extreme high. Why is this? COVID-19 undoubtedly changed many aspects of the way we work but one of the biggest shifts we saw was moving to remote work. This had a direct impact on the types of employment people sought out. While tech industry businesses had to staff up their growth quickly, hospitality and retail industries took a huge hit to their employment rates, with many shops and restaurants closing. With this, we’ve seen tech, financing, non-commercial real estate, and essentially any areas of work that can excel in remote work, takeoff (if managed properly).

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