News & Analysis as of

Canada Hiring & Firing Severance Pay

Stikeman Elliott LLP

Tailwinds of “Common Sense” Buoy Employers: British Columbia Court of Appeal Upholds Simple Termination Clause

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In the decision of Egan v. Harbour Air Seaplanes LLP, 2024 BCCA 222 (“Egan”), the British Columbia Court of Appeal upheld a termination clause in an employment agreement, rejecting various arguments to undermine the clause’s...more

Stikeman Elliott LLP

The reasonable person test—When constructive dismissal becomes employee’s failure to minimize damage

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On February 1, 2024, the Superior Court of Quebec decided that a senior executive with 35 years of service who had been constructively dismissed was not entitled to severance pay because he had declined the new position the...more

Littler

Alberta, Canada: Court Uses Oppression Remedy to Hold Corporate Directors Personally Liable for Wrongful Dismissal Damages

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In Wisser v CEM International Management Consultants Ltd, 2022 ABQB 414 (CEM International), the court used the oppression remedy to hold directors of a corporation personally liable for damages for wrongful dismissal after...more

Stikeman Elliott LLP

The High Cost of Reinstatement for Québec Employers

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On January 20, 2022, the Administrative Labour Tribunal (the “Tribunal”) awarded an employee dismissed without cause, termination pay in the amount of $716,970.71 as well as an indemnity for lost wages, loss of pension...more

Littler

Alberta, Canada: Arbitrator Decides COVID-19 Pandemic is Cataclysmic Event that Did Not Trigger Entitlement to Severance Under...

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In United Utility Workers’ Association of Canada v Dataco Utility Services Ltd., 2022 CanLII 13414 (AB GAA), Arbitrator John Moreau, Q.C., dismissed 11 grievances filed on behalf of 11 service technicians (Grievors) of Dataco...more

Fisher Phillips

Employers with Limited Canadian Presence May Be Required to Fulfill Significant Severance Obligations Thanks to Recent Court...

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A Divisional Court in Ontario, Canada recently issued a ruling that could have significant potential extra-jurisdictional consequences for U.S. employers with even a single employee based in Canada. The court’s June 15...more

Littler

Ontario, Canada Court Decides Employer’s Liability for Severance Depends on Size of its Global Payroll

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The recent Ontario decision, Hawkes v. Max Aicher (North America) Limited, 2021 ONSC 4290 (Max Aicher), establishes that global employment is factored into the calculation of an employer’s payroll under s. 64 of the...more

Dickinson Wright

Termination of Employment in Ontario

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The cost of terminating the employment of an employee in Ontario depends upon a mixture of contract provisions, common law and statute. The rules under the Employment Standards Act, 2000 about the termination of employment...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Mass Terminations—What Ontario Employers Need to Think About When Restructuring or Reducing Their Workforces

When discharging employees, it pays to be prepared. This is especially so when an employer is considering a large-scale restructuring....more

Ogletree, Deakins, Nash, Smoak & Stewart,...

At Will? What’s That?

Did you know that employees in most countries outside the United States have a contractual right to continued employment, whether or not they have written contract? If an employer does not provide an employee with a written...more

Bennett Jones LLP

Recent Ontario Decision Casts Doubt on Statutory Severance Pay Threshold

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In Ontario, employees are entitled to notice of termination or pay in lieu of notice of termination in accordance with the Employment Standards Act, 2000 (the “ESA”). In addition, employees with five years of service or more...more

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