When working notice just doesn’t work

August 20, 2017 0 COMMENTS

by Jacqueline Gant

For employers shutting down operations, providing working notice is often the best way to reduce severance amounts owed. Except when it’s not. In McLeod v. 1274458 Ontario Inc., an Ontario court confirmed that working notice is appropriate only for employees capable of working during the notice period.

Facts

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No mention of severance pay or benefit continuation … No worries! Termination provision enforceable nonetheless!

November 20, 2016 0 COMMENTS

by Rachel Younan

Recent case law has overwhelmingly rejected termination clauses that purport to limit an employee’s entitlements upon termination to the minimum notice required by applicable employment standards legislation. In Ontario, provisions that have failed to reference severance pay and/or benefit continuation have been found to be invalid, resulting in common law notice that far exceeds the intended contractual entitlement. The 2015 Ontario Superior Court of Justice decision in Oudin v. Le Centre Francophone de Toronto, 2015 ONSC 6494, diverged from that case law and, this summer, was upheld by the Ontario Court of Appeal, 2016 ONCA 514.

Facts

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Happy Headhunting for Employers

April 26, 2010 0 COMMENTS

By Gulu Punia

Successful headhunting can add significant value. But employers must be careful that they don’t become the hunted. As with any hunt, there are risks that may not be obvious. In the employment context, a Canadian employer may be on the hook for extended severance or risk an action from the previous employer for inducing a breach of the employment contract. The good news is that reasonable precautions can minimize these risks and result in happy hunting.

Recognition of previous service
One of the biggest risks for Canadian employers comes from an employee who’s recruited from secure employment. Such an employee may claim that previous service must be recognized by the new employer. This is particularly troublesome when the recruit is fired.

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