In a wrongful termination, employers must provide reasonable notice or pay in lieu of notice. In addition, employers may be liable for aggravated or punitive damages, depending on the manner of dismissal. In other words, the employment relationship can end on poor terms, so employers need to consider how they are terminating the employee, as it could result in additional damages beyond the reasonable notice period. The aggravated or punitive damages can also be as significant as several thousands of dollars. In particular, bullying and harassment at the time of termination could mean that the ..read more

At a certain point, the employment relationship can come to an end. There can be many reasons why the employment relationship ends, including layoffs or the employee moving on to another role. In some cases, however, the employer may choose to terminate an employee for cause, meaning there was a justified reason for ending their employment. Given the power dynamic in employment relationships, the employer often can decide whether to terminate an employee without much input from the employee. Therefore, there must be a valid reason before an employer can terminate an employee without providing ..read more

As a business evolves, there may come a time when the business is sold. Depending on how the new employer wants to proceed, this can significantly impact existing employees. Both parties to the business sale need to consider arrangements for existing employees, as they have rights to compensation if they are terminated, whether under the previous employer or new employer. While this is not always the case, in some circumstances, the employee’s time under previous management can be included in their total length of service, impacting the length of notice they are entitled to. It is, therefore ..read more

After an employee is terminated, they may want to pursue a wrongful dismissal claim if they did not receive the expected compensation. For instance, employers must provide terminated employees with reasonable notice or pay in lieu of notice. If the termination occurs right away, then the employer may need to pay for the amount of the reasonable notice period, which can vary at common law, depending on the employee’s length of tenure, their type of role, their age, etc. However, this amount may be reduced if the employee fails to mitigate damages, meaning that they did not make adequate efforts ..read more

Fixed-term contracts are becoming more common for employees in various industries. For instance, it may be better for employers to hire employees for fixed periods to complete a particular project. Fixed-term contracts can allow employees to pursue various work projects with employers. However, an employer’s obligations for termination in a fixed-term contract differ from those of permanent employees. Some of the terms of the fixed-term employment contract may override some common-law rights of the employee. For instance, there may be explicit terms in the employment contract that limit the am ..read more

People may not always end on the best terms at the end of an employment relationship. There may be concerns over how an employee was terminated, and the employer’s conduct can play an important role in determining the damages owed if there has been a wrongful dismissal. If the employer acted in bad faith, they may owe the terminated employee moral damages on top of what they needed to pay as part of the reasonable notice period. These damages can be significant, as in Teljeur v. Aurora Hotel Group, 2023 ONSC 1324, in which the employer was ordered to pay $15,000 in moral damages to the employe ..read more

A layoff can significantly impact an employee and be difficult to navigate, especially if the layoff is temporary or uncertain. During the pandemic, many experienced being laid off, and the court was required to clarify rules surrounding an employee’s rights and an employer’s obligations during a layoff. As businesses evolve, they may not find enough work for a certain role as they once did. Employees will need to look elsewhere for a full-time position. However, is accepting a new job during a layoff considered a resignation? In this post, we will discuss whether accepting a new role is consi ..read more

It is important for both employees and employers to consider the employment agreement terms carefully. Some employment contracts may specify terms regarding pay, hours, vacation, leave, termination, and even arbitration. For instance, the employee and employer may agree to pursue arbitration before taking the matter to court. However, in recent cases, the courts have had to decide whether certain arbitration clauses are valid in employment contracts. This is because employment contracts are considered a special form of contract, given the unequal bargaining power between an employer and employ ..read more

It is not uncommon for companies to change ownership or restructure. After a business is transferred or sold, this may affect employee rights and employer liability. It is important for both employees and employers to understand their rights and obligations if the company is transferred. In some cases, there may be issues determining whether a business was transferred and whether certain rights or liabilities apply. Before it gets to the point of transfer, it is important to consult with an employment lawyer to understand the legal consequences for both the employee and employer.  This po ..read more

Employees are typically asked to sign a release agreement by their employer when they are terminated. While it depends on the specific language of the agreement, releases generally involve an employee giving up their rights to most employment or human rights claims after their employment ends. This type of agreement allows for some certainty for employers in knowing that they will not have the risk of future employment or human rights claims from an employee. However, from the perspective of an employee, they may feel that they are required to give up their rights to certain claims in order to ..read more