Chapter 7 Flashcards
Individual contract of employment
Main components (10) (INCLUDING TERMINATION)
- Subordination: CCQ 2085
- Fixed or indeterminate term: CCQ 2086
- Health safety dignity: CCQ 2087
- Fiduciary duty: CCQ 2088
- Whistle blowing (textbook p.24)
- Non-competition: CCQ 2089,2095
Termination:
- Probationary period
- Public order rights: CCQ 2092
- Death: CCQ 2093
- Sale of business: CCQ 2097
(In Individual contract of employment)
- Subordination
“2085.A contract of employment is a contract by which a person, the employee, undertakes, for a limited time and for remuneration, to do work under the direction or control of another person, the employer.”
Direction / control: subordination -> The employee does what the boss tells him / her what to do, when.
(In Individual contract of employment)
- Fixed or indeterminate term: CCQ 2086
2086.A contract of employment is for a fixed term or an indeterminate term.
(In Individual contract of employment)
- Health safety dignity: CCQ 2087
2087.The employer is bound not only to allow the performance of the work agreed upon and to pay the remuneration fixed, but also to take any measures consistent with the nature of the work to protect the health, safety and dignity of the employee.
(In Individual contract of employment)
- Fiduciary duty: CCQ 2088
2088.The employee is bound not only to perform his work with prudence and diligence, but also to act faithfully and honestly and not use any confidential information he obtains in the performance or in the course of his work.
These obligations continue for a reasonable time after the contract terminates and permanently where the information concerns the reputation and privacy of others.
- > Act in the best interest of the employer, because the employer pays you (so you’re there to perform for the benefit of your employer).
- > Same duty for directors and officers.
(In Individual contract of employment)
(In Fiduciary duty: CCQ 2088)
–> CONFIDENTIAL INFORMATION
- > Any information you learn about the business, anything you learn in the course of your job belongs to your employer, eg. Customer list, pricing policy, intellectual property, trademarks, formulas if not patented, financial information.
- > Eg. If you work in the accounting department at a publicly traded company (insider information)
- > Eg. If you built a huge customer base for a company, you’re not allowed to bring your customers with you. However, if you leave and you get the customers contact through public information and you restart all over again, that’s ok.
- > That being said, the company cannot lobotomize you after you leave the company.
- > Copyright is automatically there if you can prove you created something; patent you have to file.
(In Individual contract of employment)
Whistle blowing (textbook p.24)
Whistle blowing (textbook p.24)
- > Internal (bringing the problem to the supervisor) / external (bringing the problem to the government / regulators / public)
- > Burden of proof is on you if you whistle blow.
- > External whistle blowing is technically contrary to fiduciary duty (hence the law). So it has to be in good faith and in the interest of the public.
(In Individual contract of employment)
- Non-competition: CCQ 2089,2095
2089.The parties may stipulate in writing and in express terms that, even after the termination of the contract, the employee may neither compete with his employer nor participate in any capacity whatsoever in an enterprise which would compete with him.
However, the stipulation shall be limited as to time, place and type of employment, to what is necessary for the protection of the legitimate interests of the employer.
The burden of proof that the stipulation is valid is on the employer.
- An employer may not avail himself of a stipulation of non-competition if he has resiliated the contract without a serious reason or if he has himself given the employee such a reason for resiliating the contract.
- > Rarely enforced.
- > Usually enforced when selling someone your business for example.
- > Courts still ask themselves if the clause is reasonable (so they can deem it unreasonable and null?)
(In Individual contract of employment)
- Termination: two components?
- Reasonable notice
- Serious reason
(In Individual contract of employment)
(In Termination)
–> REASONABLE NOTICE
Alternatives? In case of maternity? What about the person replacing you? Who can use reasonable notice?
2091.Either party to a contract for an indeterminate term may terminate it by giving notice of termination to the other party.
The notice of termination shall be given in reasonable time, taking into account, in particular, the nature of the employment, the specific circumstances in which it is carried on and the duration of the period of work.
- > Can give net pay instead of notice. Eg. I give you 4 weeks wages and you have to leave now.
- > For maternity, within 6 months I have to give you your same job back. Within 12 months, I have to give you at least a comparable job.
- > The person replacing you is going to be on a fixed term contract.
- > Either party can use reasonable notice and leave / fire that person
(In Individual contract of employment)
(In Termination)
–> SERIOUS REASON
- One of the parties may, for a serious reason, unilaterally resiliate the contract of employment without prior notice.
- > eg. Insubordination, you’re late 3-4 times a month.
- > One event usually not sufficient eg if you’re late. First time: whatever; second: verbal warning; third: written warning;
- > Series of similar events -> enough for serious reason
- > How many warnings are enough? No magic number but usually 3 written warnings is good enough
For a fixed term contract, what are the laws for termination?
-> 2091 only talks about indeterminate period. If fixed term, you can fire for serious reason but you cannot fire with reasonable notice, unless there is a provision in the employment contract.
(In Individual contract of employment)
- Probationary period
- > Usually the first three months of a white collar contract, there is a probationary period where either party can terminate the contract for whatever reason they like, usually with 1-week notice.
- > eg. You finesse the interviewers but you actually don’t know how to do anything, you can get fired during the first three months.
- > Contract clause, otherwise if not there only 2091 applies.
(Sometimes can be up to 6 months)
(In Individual contract of employment)
- Public order rights: CCQ 2092
- The employee may not renounce his right to obtain an indemnity for any injury he suffers where insufficient notice of termination is given or where the manner of resiliation is abusive.
- > Public order right to sue your employer. So the employer cannot put a clause in the contract saying “The employee agrees that the employer can fire him / her at any time for any given reason without reasonable notice / serious reason”.
(In Individual contract of employment)
- Death
2093.A contract of employment terminates upon the death of the employee.
Depending on the circumstances, it may also terminate upon the death of the employer.