Another One Bites the Dust – Mass Closures and Employer Responsibilities to Employees

Another large fashion retailer has fallen out of style with consumers, closing its doors for good across Canada. Last Sunday, Bradley Sell, the Chief Financial Officer of the Canadian subsidiary Forever XXI ULC (“Forever 21 Canada”), announced that all 44 of its Canadian stores would be closing. Sell cited economic viability as the primary reason for the Canadian closures. Approximately 2,000 employees will lose their jobs as a result. The Ontario Superior Court has granted the company protection from its creditors under the Companies’ Creditors Arrangement Act (CCAA).

ESA Requirement Upon Mass-Termination

While filing for bankruptcy can offer an employer an opportunity to restructure its operations without the looming specter of insurmountable debt, bankruptcy is not a “get out of jail free card” for employers.  In Ontario, under the Employment Standards Act (the “ESA”) employers must provide enhanced benefits to employees who have been terminated via a “mass termination.”

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Update on notice periods – it’s good news for employers

We wrote about the Dawe v. Equitable Life Insurance Company, 2018 ONSC 3130 back in January. Check out that post here.  The Dawe case was notable because the judge in that case awarded Mr. Dawe a notice period of 30 months. The judge also made the comment that he would have awarded Mr. Dawe 36 months of notice, but stopped at 30 because that was what Mr. Dawe had asked for in his Statement of Claim. 

30 Months of Notice!!!!

This case caused a stir with employment lawyers because historically 24 months of notice has been the high-water mark. It has been very rare to see a former employee awarded more than 24 months of notice and this would only be the case in “exceptional circumstances.”

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Thanks to our Readers! Announcing our win of the Lexology Legal Influencer Award for Q2 of 2019! #influencer

  • July 16, 2019
  • News

We are super excited to announce that once again, we have been named Legal Influencers for Employment Law in the Lexology Content Marketing Awards for Q2 of 2019! We won this award in Q4 of 2018 – check out our post on that here – and are stoked that our blogging success is having staying power. I mean it’s 2019, what’s cooler than being named a #influencer?! 

This particular award recognized our blog for consistently providing useful and insightful legal analysis. Aw, thanks! 

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Accommodating Addictions

A labour arbitration decision out of Nova Scotia has got us thinking about what will qualify as addiction and justify accommodation in the work setting.  In Unifor, Local 2215 v IMP Group Ltd (Aerospace Division) (AB Grievance), [2019] NSLAA No 4, Arbitrator Richardson determined that an employee’s on the job masturbation was not justified by his reported sex addiction and upheld the employer’s decision to terminate.  

Sex Addiction

The employee in question carried out his offending behaviour in a four-stall bathroom, and though he was courteous to the extent that he did not engage in the behaviour if someone was in the stall directly beside him, he was commonly overheard by his co-workers.

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Unauthorized Absences – When your employees are crazy sports fans!

With the huge response to the Raptors parade this week we thought it a good time to revisit the issue of unauthorized employee absences. Many employers allowed their employees the day off to go celebrate, but there were also reports showing some employees, who did not get the day off, wearing fake noses and disguises to the parade so that they would not be identified by employers should they happen to get on TV. We discussed this topic way back in 2015 when the Blue Jays and Blue-Flu were causing a bit of a dip in employee productivity. Be it baseball, the World Cup (go Canada’s Women’s Soccer team! #CANWNT) or Raptors fever, employers need to be prepared to manage their sport fan employees!

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Uber heading to the Supreme Court

The fate of the gig economy in Canada is in the hands of the Supreme Court. The saga of David Heller and Uber has been in the news for several months and raises important employment law questions relevant to those working in the gig economy.

History of the Case

This is a class action case brought by representative plaintiff David Heller, an Uber Eats driver. Heller argued, on behalf of Ontario Uber drivers, that they are employees of Uber and entitled to the benefits of the Employment Standards Act, 2000 (ESA).

Uber currently has its drivers enter into a Service Agreement. It characterizes itself as a “lead generation service” and drivers, via the Service Agreement, are able to use the Rider App to pick up those leads.

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