Workplace Law: It Pays To Be Proactive

workplace law advice for employers

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In these challenging times, in the midst of the pandemic, as workplaces re-open, pivot and change, we see the importance and immense value of having strategic employment and workplace law advice. Just a small allocation of thought space and time to being proactive could have changed the outcome of so many situations. We see it now in our firm in many ways. 

Having run a small business for over a decade, I can appreciate that employers are often triaging the urgent demand of finding solutions to client’s needs. Rarely did I have the time or opportunity to “smell the roses” let alone try to proactively anticipate the workplace law needs of my growing organization. However, I now see the critical importance of taking a proactive approach.

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Employers Get Out Your Contracts: An Important Ruling on Termination Provisions

enforceability of specific termination provisions

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This Ontario Court of Appeal decision has been the talk of the town on all the Ontario employment law blogs and while we don’t like to be followers, we also wanted to make sure our readers did not miss this important decision. In Waksdale v. Swegon North America Inc. the Ontario Court of Appeal ruled on the enforceability of specific termination provisions in an employment contract, finding the “without cause” termination provision enforceable because of a flaw in the “with cause” provision. 

Courts frequently come up with new ways of invalidating employer drafted termination provisions that would restrict an employee’s entitlement to notice. The enforceability of termination provisions is what lots of employment cases are about. A properly drafted termination provision in an employment contract can significantly limit an employee’s entitlement to notice of termination. For example, a long service employee terminated “without cause” could be entitled to as little as 8 weeks or as much as 2 years of notice depending on the contract. 

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The CEWS, the CERB and Returning to Work

As we look towards returning to work and re-opening businesses we thought we would re-visit the CEWS and CERB, both of which have recently been extended. 

The CEWS (Canada Emergency Wage Subsidy) continues to provide employers with a wage subsidy to bring employees back. The CERB (Canada Emergency Response Benefit) may be working against employers in some instances, where employees do not want to come back or serve to make more money by not working and staying on the CERB. 

Extension of the CEWS

The government has doubled the length of the CEWS program to now extend until August 29, 2020. Eligibility for the CEWS is broken down into periods, where an employer needs to demonstrate a specific revenue reduction for that period. Periods 5 (July 5 – August 1) and 6 (August 2 to August 29) are expected to require a 30% reduction in revenue, however, details have not yet been announced.

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Big Changes for COVID-19 Layoffs in Ontario: New O. Reg 228/20 Infectious Disease Emergency Leave Curtails Constructive Dismissal Claims

new Infectious Disease Emergency Leave regulationAs many of our readers and clients know, we have been cautioning that the legality of certain layoffs and job changes necessitated by COVID-19 is uncertain. Generally, layoffs are only legal if the employment contract gives the employer the right to layoff, and many other job changes, such as reductions in hours or pay, raise the risk of constructive dismissal. We anticipated that at some point the Ontario government may weigh in and change the law – on Friday they did.  

Note that none of these changes apply to unionized employees. 

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Considerations for Employers as We Return to Work

Considerations for employers as the provinces are opening back upThe provinces are opening back up and various guidance has been issued to employers regarding how to do so safely, but the virus still exists and it’s still contagious. Governments who have been encouraging people to stay home are now contemplating how to get people to go out when really conditions regarding the virus have not drastically changed. This juxtaposition will have an impact on workplaces. 

Employee Work Refusals

We can anticipate that some employees will refuse to come back to work, even if they have been recalled and even where the employer has followed government guidance on how to make a return to work safe. What should employers do with these employees?

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How Can I Afford Legal Advice if My Business is Sinking?

Can I Afford Legal AdviceHow Can I Afford Legal Advice?

Many employers are facing rock hard choices right now: layoff on shaky legal ground or go bankrupt? Let some employees go, but how to afford termination pay? Offer more than ESA minimums to get a release or risk a claim down the road?

Since early March 2020, we’ve found ourselves regularly telling clients what the technical legal answers are, and then we quickly move to the COVID-19 business reality solution. This new world order is not going away anytime soon and I fully anticipate some new law coming out of this unique moment. Employers cannot afford payroll but employees cannot mitigate their job loss in this job market – so everyone is turning to the pandemic economic crisis as the reason for paying less termination pay or for demanding more of a package. Courts will have to somehow reconcile these competing interests, each of which is based on the same underlying issues caused by COVID-19.

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