Labour Arbitration: When are Damages in Lieu of Reinstatement an...
In the context of a unionized work environment, it is generally the case that when an employee is found to be terminated without cause, the employee is ordered to be reinstated.
In the context of a unionized work environment, it is generally the case that when an employee is found to be terminated without cause, the employee is ordered to be reinstated.
A new decision from the Ontario Court of Appeal shows the potential downside of fixed term employment contracts for employers and the importance of proper drafting.
In a decision issued February 29, 2016, Justice Morrison of the NB Court of Queen’s Bench, dismissed an appeal which would have otherwise compelled a University to disclose severance payment information, which was expressly shielded by a confidentiality clause.
There continues to be a seemingly never-ending stream of cases which confirm the perils of assuming that an employer’s liability for reasonable notice of termination will be capped at one month per year of employment.
Employee salaries and benefits can be some of the greatest costs borne by a business. As a result, when a company faces financial hardship, they will often terminate positions to reduce their costs.
In the absence of an employment agreement that expressly sets out a notice period upon termination, employees who are terminated without just cause are entitled to a notice period or pay in lieu of notice from their employers in accordance with the common law.
In a recent decision of the Alberta Court of Appeal, Stewart v. Elk Valley Coal Corp., 2015 ABCA 225, it was held that the termination of an employee who tested positive for cocaine in a post-incident drug test was not discriminatory.
The dismissal of a long-term employee who is entitled to common law reasonable notice can result in significant liability for an employer. As the determination of the appropriate notice period is contextual, it can be difficult for an employer to accurately assess their potential liability.
In Ostrow v. Abacus Management Corp. Mergers and Acquisitions, 2014 BCSC 938 (May 29, 2014), the British Columbia Court Supreme Court assessed the appropriate notice period for a nine-month employee.
One of the questions at the forefront of many employers’ minds when they are considering terminating an employee without cause is how much it is going to cost. Unless there is a written employment contract with an express termination clause, an employer’s obligation is to provide reasonable notice of termination.