Chapter 4: Employment and Human Rights Flashcards
What was the Development of Employment Law traditionally based on?
It was traditionally based on common law of master and servant
What is the Development of Employment Law supplemented now by?
- Statutes that have been passed to regulate employment relationships.
- The emergence of trade unions and collective agreements.
The relationship of employer and employee
- Relationship is contractual
- An employee may also act as the employer’s agent.
- The employee must be distinguished from the independent contractor
- Employer directs and controls employee’s work
Characteristics of independent contractor
- Hired to complete a task or deliver a result for a fee.
- Owns the tools necessary to do the work.
- Controls hours and time of work.
- Controls how the work is done.
- May work for others
- No tax, pension, benefit, or government deductions withheld from payment
- Invoices for work done and charges GST/HST
- Pay own expenses
- Assumes the risk of profit or loss
What regulate the rights and obligations of an employee?
If the individual is an employee, rights and obligations are under employment standards and other statutes.
Relationship of employer and employee compared to contractors?
- independent contractor’s rights are confined to those described in their contract
- when an independent contractor takes on a job, any liabilities incurred by the in carrying out the task are almost entirely their own, subject to the terms of the contract.
- vicarious liability is not applied to someone who hires an independent contractor.
- employee tax and pension holdbacks are also not applicable.
What are the characteristics of dependent contractors?
- operate midway between employees and independent contractors.
- have their own businesses and control over the completion of their tasks, but work primarily with one client over a long period of time and therefore are economically dependent on that client.
- Under common law, dependent contractors must be given reasonable notice of termination of the relationship
Employer’s liability: Contract
Employer retains liability for work performed by employees to meet employer’s contractual obligations.
Employer’s liability: Tort
Employer is vicariously liable for employee’s torts committed during the course of employment, even if employer is blameless.
Notice of Termination of Employment Contracts
- Generally, employees can be terminated without cause with notice.
- Length of notice comes from three places: employment standards legislation, common law, and contract.
- Employment standards legislation provides for minimum notice
- Common law requires reasonable notice or pay in lieu of notice
- Express term of contract may stipulate advance notice of termination
Explain “employees can be terminated without notice”
- Where termination is not for cause, reasonable notice must be given (implied term)
- Exception: employees under federal jurisdiction and unionized employees
- Can be notice or pay in lieu of notice (i.e. severance, the money someone gets when they get fired)
Length of notice comes from three places:
- Employment standards legislation
- Common law
- Contract
Explain “employment standards legislation provides for minimum notice”
- Cannot contract out of employment standards
- It goes up 1 week per year up to 8 weeks. If someone has been with an organization for 8 year they are entitled to 8 weeks notice, if they have been 20 years, they are entitled 8 weeks notice.
Explain “common law requires reasonable notice or pay in lieu of notice”
- Essentially means, how much time does this person need to find alternative employment.
- They average last 8 week of regular work. There is a formula to determine what employees are entitle to which include averaging the last 8 weeks worked.
Explain “express term of contract may stipulate advance notice of termination”
- If contrary to employment standards, will be unenforceable
- Parties can negotiate whatever they want for termination payment.
What are Bardal Factors?
What should be taken to account to determine what is reasonable.
How is reasonable notice determined at common law?
- length of employment: The longer they have worked for a company, the longer notice they are entitled to.
- character of employment: Is it retail where it is easy to find another job very fast, or is it more specialized job where it is harder to find a job?
- age of employee: Is someone is 50 or over, notice time goes up significantly because is harder for them to find another job.
- education or training of employee
- experience of employee: The more experience generally the less jobs. There are fewer executive positions than manager levele.
- availability of similar employment in the industry (market conditions): If it is a great labor market is it less risky for employees. If market conditions is bad then is riskier to terminate because notice period is going to be longer.
What is the rule of thumb for reasonable notice?
1 month per year but to 24 months.
Dismissal without notice (for cause)
- Notice is not required for dismissal with cause.
- Progressive employee discipline is now expected.
- Difficult to dismiss for cause, especially without progressive discipline.
- If the employer later discovers that there was in fact cause for dismissing the employee without notice, it could be a defense to employee’s lawsuit for wrongful dismissal, even if it becomes known after the action has started.
- Sometimes employers look for cause during notice period to get out of severance.
What is conduct that creates cause?
- Misconduct (includes dishonesty)
- Disobedience
- Incompetence
- Permanent illness (could be frustration)
Wrongful Dismissal
- Action arises where notice was insufficient or cause not established
- Reasonable notice depends upon all the circumstances of the employment like but not limited to: Length and nature of employment, Age of employee, and Availability of similar employment given educational and experiential background of employee
- Damages are compensation to anything the employee would have been entitled to during the notice period: Bonuses, benefits, commissions, allowances, stock options, etc.
- Damages are increased by bad faith dismissal which is a breach of utmost duty of good faith: Additional award for aggravated damages
- Punitive damages for egregious conduct: Punitive damages: this is like “manager, you acted terribly, we are going to punish you.”
Mitigation by employee
- Employees have an obligation to mitigate their losses by seeking out and accepting reasonable alternative employment
- Compensation from alternative employment will reduce damages
- If employee fails to mitigate by attempting to find employment, damages will be reduced
- Can be incorporated into employment contract
Reinstatement
- If someone is unionized and wrongfully dismissed then they would be rehired. But they wouldn’t otherwise.
- Not available at common law
- Common remedy under collective agreements
- Also available to non-union employees within the federal Labour Code
- Potentially available if human rights violation
- Unless it fits within specific circumstances, reinstatement is not an option.
Constructive Dismissal
- Employer fundamentally changes nature of job to the extent that it becomes a breach of contract.
Employee quits because job becomes intolerable
Employee rejects change to job description - Treated a wrongful dismissal
Common forms of constructive dismissal
- Reduction in salary or benefits
- Change in job status or responsibility and nature of position
- Change in geographical location