Canadian Employment Law for US Employers: Part 2 – Contracts

This is Part 2 of our blog series for US employers with operations in Canada. Click here to read Part 1 if you haven’t already.

Canadian Employment Law for US Employers

No At-Will: Contracts are a Big Deal in Canada

One of the core employment law differences between the US and Canada is that there is no at-will employment in Canada. Ever. In fact, when Canadian judges read “at-will” in a contract, they typically set aside the contract altogether and substitute in typically far more generous common law terms.

In addition, if you do not have any contracts in place, the courts will read in implied terms. This is because all Canadian employment relationships are governed by a contract under our law, whether expressly in an agreement or implied based on common law.

If an employer does not roll out a contract with their employees, the judge will imply terms and conditions that in most cases are more generous than anything the employer would have provided.

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Canadian Employment Law for US Employers: Part 1 – Backgrounder

US Employers' Guide to Canadian Employment LawsAre you a US employer with operations in Canada? Welcome and bienvenue to this blog series written just for you. Our Canadian virtual employment law firm advises many US employers who have employees and contractors in Canada. I love this conversation. We’re neighbours who share so many similar cultural values, pop culture references and the world’s longest unsecured border.  And yet there are fundamental differences in our countries’ respective workplace laws and workplace culture. It often catches our US employers by surprise and triggers very expensive moments in the employment relationship.

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The Education Worker Strike: A Primer on Constitutionally-Protected Labour Laws

Ontario Education Worker StrikeAn Unprecedented Legislative Move

This week, Bill 28 was repealed and the collective bargaining model in Ontario stands. Why was it such a big legal deal?  

The recent strike by education workers in Ontario made headlines for reasons beyond the usual disruption to parents’ and kids’ everyday lives. On October 30, 2022, the Canadian Union of Public Employees (CUPE) in Ontario gave notice to the province that the education workers it represents would strike in 5 days. 

On November 3, the province responded by introducing Bill 28, which enacted the Keeping Students in Class Act, 2022, unilaterally imposing a new collective agreement, outlawing the impending strike, and invoking the “notwithstanding clause” in the Charter of Rights and Freedoms to do so. This type of legislation is unprecedented. 

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The Importance of Being Honest and Sensitive: The $50k+ Moral and Punitive Damage Award

Moral & Punitive Damage AwardEmployers may want to reassess how they terminate their employees and the timeframe and manner through which they provide their employees with their termination-related entitlements. Pohl v Hudson’s Bay Company, 2022 ONSC 5230, a recent Ontario decision, demonstrates, amongst other things, what a court may award an employee whose dismissal was conducted by an employer in an unfair manner.  

What Happened?

A 28-year full-time Hudson’s Bay Company Sales Manager in his 50s was terminated on a without-cause basis and immediately walked out the door. He earned an annual salary of $61,254 plus pension contributions and other benefits.

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Legislation Brings Gender-Inclusive Language

Gender-Inclusive LanguageRecent legislative changes acknowledge society’s growing understanding of gender diversity in all places, including the workplace. More provinces and territories may follow in adapting their employment legislation to reflect current norms. 

Employers can and should take proactive steps to create inclusive workplaces by acknowledging and promoting gender diversity and making sure to address employees by their preferred pronouns. Failing to do so could lead to potential human rights claims.

In various parts of the country, employment-related legislation has recently been amended to include gender-inclusive language. As society develops an understanding of gender diversity, our legislation is starting to keep up with the times.

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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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