Practical Tips and Tricks for Navigating the Arbitration Process 

This is the third entry in our blog that focuses on the topic of labour law. In case you missed it, you can find the first entry here and the second entry here. In this blog, our focus is to share Practical Tips for Arbitration Navigation.

I’ve Just received a Notice of Arbitration: Is it time to Panic?

The short answer to whether you should panic is: no. It’s important to understand, especially if you’re just beginning your labour journey, that arbitration shouldn’t be feared. However, it is important to carefully consider and understand the process and potential outcomes of proceeding to arbitration.

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Employers Can Create Win-Win Scenarios by Facilitating Re-employment for Ex-Employees

Common Law Notice 

Upon termination of employment, if an employee’s contractual entitlements are not nailed down in an up-to-date and enforceable employment contract, the employee is likely entitled to common law reasonable notice (or pay in lieu of notice) of termination. Even if an employee’s entitlements are set out in an employment contract, it is common these days for employees, on the advice of employment law counsel, to claim that some of the contract’s termination-related provisions are not Waksdale-proof, and are therefore unenforceable. (We discuss how employers can make their contracts Waksdale-proof in this blog, and best practices for rolling out updated contracts in this blog). Under both scenarios, any path to resolution will start with an assessment of the common law notice period.  

Employers Facilitating an Ex-Employee’s Re-Employment Create a Win-Win Scenario

Courts consider several factors in determining an employee’s common law notice period (i.e. the number of weeks or months of pay to bridge the employee until their next role). The primary factors are known as the Bardal factors: 

  1. the employee’s age; 
  2. their length of service; 
  3. the character of their employment (i.e. the seniority/level of responsibility of their role); and 
  4. the likelihood of finding comparable employment (i.e. an assessment of the job market). 

A simple way to understand the common law notice period is to conduct a thoughtful and informed analysis of how long it will take the employee to re-employ in a comparable role. 

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The Power of An “If You Get Another Job Clause”

termination clawback clauseIn recent months, we have seen a spike in group terminations. For HR professionals this often means a packed schedule of the worst-of-the-worst meetings. In our recent blog post, we discussed terminations with softer landings (and less chance of disputes and litigation), and bigger-picture best practices for those difficult exits. In this blog, we zero in on an aspect of severance package drafting.

In the process of structuring severance packages for (too many) employees, we’ve noted that some employers have forgotten about a handy clause that can lead to a win-win post-termination scenario for both employers and employees. However, the clause gets a bad rap because it is colloquially known as a “clawback clause” and can be misinterpreted as a sinister employer strategy.

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Don’t Leave it to Luck: Update Employment Contracts Following Substantial Changes to the Job

Update Employment Contracts Following Substantial Changes to the JobWith St. Patrick’s Day having just passed, many of us start to bank on luck at this time of the year. While luck might get you to the end of the rainbow on some things, we wouldn’t recommend that you lean on luck when it comes to non-existent, outdated or incomplete employment contracts. 

The Consequences of Leaving it up to Luck

First, in case you’re new here or need a quick refresher, employment contracts are often recommended by lawyers and adopted by employers to bring a level of certainty to the employment relationship. Employment contracts can achieve a variety of things but generally, they set out the responsibilities and expectations of the employee and employer. If the employment relationship is bound by provincial employment standards legislation (it usually is), then the contract has to, at the very least, uphold the minimum standards of the applicable legislation. 

If your employment contract runs afoul of the applicable employment standards legislation by failing to uphold the minimum standards as required by the law, your contract could be deemed unenforceable. Contracts could also be found to be unenforceable if they fail to comply with the principles of contract law. 

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How to Avoid Constructive Dismissals

How to Avoid Constructive DismissalsNow, more than ever, businesses are modifying and evolving in order to keep up with changes in social and industry trends, work environments, office locations, and the economy.  Generally, your business evolving is a good thing and means you’re doing well but major changes to the organization of your business can also lead to constructive dismissals. As an employer, you need to be aware of how to make changes at work, without forcing employees out. 

What is Constructive Dismissal? 

It’s no secret that hiring and firing are pretty common and well-known practices while running a business. What is less talked about are constructive dismissals. A constructive dismissal happens when a unilateral change made to an employee’s contract or overall employment relationship is so significant that it basically breaks the contract.  A change leading to a constructive dismissal claim must be fundamental and done without the employee’s agreement, leaving the employee feeling like their only option is to resign and sue for breaking that contract. 

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