Chapter 8: Employment Law

Question 1

What is the Employment Legislation?

Answer 1

• Employment relationship in each province which indicates:
  a. Minimum Wages.
  b. Hours of work.
  c. Notice of termination.
  d. Working conditions.
• Other legislation mandates benefits for employees (at federal and provincial levels).

Question 2

8.3 Nature of the Relationship: Employee vs Contractor.

Answer 2

• 4 Fold Test:
  1. Integration: Is the employee integrated into the workplace so that an outside observer would presume there were not a contractor.
  2. Control: Does the contractor control the hours that they come to a workplace, do they work at other locations and for other business organizations besides this particular place?
  3. Ownership of tools: Does the contractor provide their own tools/equipment to their work?
  4. Opportunity for profit and risk of loss: Is the contractor paid a flat amount or are they rewarded based on some factor that is within their control?

Question 3

8.7 Termination of the contract of employment.

Answer 3

• Termination with “Cause”: Generally where circumstances exist that amounts to a breach of the employment contract, dismissal can be without notice.
• Where there is no obvious breach of the employment contract, the employment can still be dismissed without cause. The issue then becomes the length of notice the employee is entitled to.
• Nowadays, long service, unskilled employees and low level management positions are entitled to lengthy periods as notice of termination.

Question 4

8.13 Collective Bargaining Legislation: Employment in a Union.

Answer 4

• Collective Agreement: Agreement in writing, made between an employer-union certified/recognized as the bargaining unit of employees. It contains the terms/conditions under which work is to be performed and sets rights/duties of the employees.
• Employees who are members of a union have given up their individual rights to an employment contract in exchange for a common contract.

Question 5

What are the termination differences in union versus regular employment?

Answer 5

• In a regular employment contract, the employer can fire an employee with the only issue of the reasonable amount of notice; whereas, in a union the employer may only terminate the employee based on the terms of the collective agreement, this involves “progressive discipline” (verbal warning>written warning>suspension>termination).
• All collective agreements have an arbitration clause referring issues like this to a binding arbitration, the arbitrator has the ability to reverse a decision to discipline/fire an employee.

Question 6

What does collective agreements outline/promote?

Answer 6

• Collective agreements outline wages rates for various skills in the workplace. Wages are generally based on qualifications/experience rather than performance.
• Collective agreements promote “Seniority” which is particularly important if the workforce is being reduced. The length of service rather than performance determines who will be laid off first and who will be recalled to work first.

Question 7

Advantages and Disadvantages of unions for employees.

Answer 7

• Advantages:
  a. Protection from unfair employment practices.
  b. Protection from arbitrary hiring/firing decisions.
  c. Higher wages/benefits.
  d. Clear process of determining disputes.
• Disadvantages:
  a. Inability to negotiate one’s own terms of employment (Advancement is based on seniority rather than ability).
  b. Pay union dues and follow union rules.

Question 8

Advantages and Disadvantages of unions for employers.

Answer 8

• Advantages:
  a. Scope of work each employee can do is generally better defined.
  b. Unions allow standardized management practice and defines the rules of the employment relationship clearly.
• Disadvantages:
  a. Members of one union will not perform the work done by members of another union.
  b. Less flexibility in promoting the best employees.