Comm 304 Midterm 2 Flashcards

1
Q

Why is an employee contract special?

A
  • Lack of equal bargaining power between parties
    • One of the most regulated contract relationships
    • Conducted for a long period of time “indefinite”
    • Issue of implied terms
    • Status of being an employee i.e. “contractor” issue
    • Emerging new forms of employment the gig worker and crowd work
    • Unionized environment is heavily impacted by collective bargaining agreement
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2
Q

Who is an employee and why do they matter

A
  • Employees enter into a contract of employment with the employer offering their labour for exchange of wages, benefits and other rational return
    • Independent contractors enter into commercial contract offering services for revenue
    • Employees are subordinates to their employers while independent contractors have autonomy
    • Employees need to be protected from unreasonable employer action while contractors running their own business must watch their own interest
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3
Q

Legal tests to determine employment status

A
  • Old age control test looks at how much control the employer has over the worker
    • The organization or integration test look at what extent the worker is integrated in the business of the employer and the work performed is not just peripheral
    • Fourfold Test looks at 4 main criteria’s to determine status; control over worker by employer, ownership of tools, chance of profit for worker, risk of loss for worker
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4
Q

Employer Conduct

A
  • Provide a safe work environment
    • Compensate employee for work provided
    • Provide noticeable fermentation
    • Treat employees with respect
    • Act in good faith when terminating employee
    • Do not impede employees ability to perform their assigned work
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5
Q

Employee Conduct

A
  • Obey lawful orders of the employer
    • Be honest
    • Provide reasonable notice of resignation
    • Advance the employers economic interest and serve faithfully
    • Do not compete against the employer
    • Do not harass others
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6
Q

Employment Standards (ES)

A
  • Minimum wage
    • Paid vacation and holidays
    • Standard hours of work and overtime
    • Pay on termination of employment/ severance
    • Termination of employment and related notice
    • Maternity and paternal leave
    • Other unpaid employment leaves
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7
Q

Human Rights Law (HRL)

A

aims for equal employment opportunity by prohibiting discrimination based on certain grounds
- Prohibited grounds fairly uniform across jurisdiction with some minor variations
- Most relevance grounds in practice; disability, age, sex, nationality, race
- HRL essential in almost all HR disciplines (hiring, promotion, compensation, termination)
- Cases are heard by Human Rights Commissions not courts

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8
Q

HRL in Saskatchewan

A
  • Prohibits discrimination in employment and discrimination by trade unions
    • Employment applications and advertisements not to express discrimination
    • Protects against intimidation and discrimination on thru ground that individuals file a complaint
    • Outlines composition and procedures of the SK HR commission
    • Specifies work related rights to engage in occupations
    • Applies far beyond employment context
    • Prohibited grounds under the SK Human Rights Code; religion, creed, family and status, sexual orientation, age, disability, colour, etc.
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9
Q

How employment agreements can end

A
  • Expressed term
    • Implied term
    • Frustration
    • Summary dismissal
    • Constructive dismissal
    • Fixed contract duration
    • Employer termination with notice
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10
Q

Termination by reasonable notice; barbal factors

A
  • Years of service the more years of service the more notice
    • Age the older the employee the more notice
    • Employment type criteria diminishes in importance more notice for management or senior roles
    • Availability of similar employment; the harder the economic times the more notice
    • Other factors may include, if an employee was induced to give up prior secure employment, more notice
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11
Q

Summary Dismissal (being fired)

A
  • Known as the capital of employment law ; allows the employer to terminate the employment agreement without providing notice due to a fundamental breach of employment contract by the employee
    • Must meet a high standard; if the requirements are not met it amounts to wrongful dismissal it is an either or assement
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12
Q

Constructive Dismissal

A
  • Legal “construct”
    • Temporary layoffs, change in compensation and benefits, relocation, change in jobs, unpaid suspension and harassment
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13
Q

Labour Relations

A
  • LR means the union management relation
    • Once a union is certified the employer has an obligation to negotiate in good faith a collective bargaining agreement (CBA) with the union
    • The union represents employees in dealings with the employer
    • 30% of workers in Canada are covered by CBAs
    • Employees have the right to join a union significantly impacts the operations of a work place
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14
Q

Business Unionism

A

focuses on protecting workers rights, improving working conditions and providing service to members

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15
Q

Social Unionism

A

focus on influencing economic and social policies of government, goes much beyond “business unionism”
- Changing views of unions in society’s commonly after high profile strikes
- Need for unions to adapt due to competition and globalization

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16
Q

Key Principals of Labour Relations Law

A
  • Employees have the right to join a union
    • Unfair labour practices by both parties are prohibited
    • No strikes or lockouts unless a conciliation process has failed
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17
Q

Union Set up and Structure

A
  • Unions can be local, national and international, or provincial and national union federations
    Canadian Labour Congress (CLC) is the largest federal confederation of unions, provides support and training to local unions
    International Trade union (ITUC) is the global voice of workers
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18
Q

Typical Clauses in CBAs

A
  • Working hours and overtime
    • Wages, pay, benefits
    • Leaves
    • Seniority clause
    • “just cause” clause
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19
Q

Grievance Process

A
  • Grievance process; is the most common form of resolving disputes arising out of a CBA, multi step process, can be filled by the union or employer, if no settlement advances to arbitration
    • Types of grievance; individual, group, policy- employees alleged wrongdoing is of general interest for the entire bargaining unit
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20
Q

Labour Arbitration

A
  • Meant to provide a speedy, less formal process for settling labour disputes outside the court system
    • Typical remedies arbitrators can order; damages for loss, wages, benefits, apology, awarding a job denied, damages for commission of tort
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21
Q

Just Cause Cases

A

The employer terminated an employee without notice
- Employer cannot discipline or dismiss an employee unless employers has just cause unlike ununionized workers
- Typical Grounds for just cause include; dishonesty, harassment, violence, poor performance, attendance issue, intoxication, off duty conduct

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22
Q

Duty of Fairness

A
  • Requires unions to avoid; discrimination, bad faith and arbitrariness
    • Unions obligation toward employees as a trade off for being granted exclusive bargaining rights
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23
Q

The grievance issue

A
  • Can leave the employee with no effective remedy to challenge; dismissal by the employer if the union decides to drop the case
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24
Q

Industrial Conflict

A
  • Strikes; employer can not discipline or terminate employees engaged in legal strike, employer can hire replacement workers, for a strike to be legal in SK workers must be unionized and no CBAs in place, the mediation failed
    • Lockouts; requires motive element, when to use lockouts as a tactical bargaining strategy
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25
Q

Duty to Accommodate

A

obligation on the employer to adjust work for an employee with a recognized disability. Bona fide occupational requirements must be met by the job applicant

A number of provinces have now amended their human rights code or employment legislation to eliminate the right of an employer to retire employees when they are 65, employees can also continue their work beyond this age unless the employer should be entitled to terminate the employees service for another cause.

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26
Q

Arbitration

A

a process of settlement of disputes where a third party hears the dispute then makes a decision that is binding on the parties

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27
Q

Agency

A

Principal a person on whose behalf an agent acts

28
Q

Agent

A

a person appointed to act for another usually in contract matters
1) Principal grants authority to agent
2) Agent negotiates and enters into job contract with third party
3) Contract between third party and principal is formed
- One person the agent is authorized by another person (the principal) to act on his/her behalf
- The agent acting towards third party bind the principal
- The third party can enforce the agreement against the principal

29
Q

Creation of Agency Relationship

A
  • By contract: principal and agent regulate their relationship in a contract
    • By statute: the law assumes certain relationship being one of the agency
    • By appointment: the principal appoints the agent to a position of authority that allows the agent to bind the principal
    • By conduct: principal makes representation to a third party suggesting someone is his agent
    • By necessity: common law defines persons as agent of others in emergency situations where consent of the principal cannot be obtained
30
Q

Agency by Conduct

A
  • Can lead to various challenges; scope of power of agent might be unclear as principal did not explicitly authorize the agent but through actions or omission creates impression in third party the agent is a true agent
31
Q

Obligations of the Parties

A

Principal: act in good faith in the agency relationship, pay the agent for their services, indemnify the agent for expenses incurred
Agent: act in good faith and take reasonable care in the performance of their obligation, act in the best interest of the principal, not in their own best interest

32
Q

Third Parties and the agency

A

Disclosed Agency: agent indicates to the third party that they are an agent, agent discloses to third party who the principal is
Undisclosed Agency: agent does not indicate to third party they are an agent; third party acts in their own name
Disclosed Agent but not undisclosed principal: agent indicates to third party that he is an agent, agent does not disclose the identity of the principal
Fictious agency: agent indicates to third party that they are an agent

33
Q

Sole Proprietorship

A

simplest form of carrying on a business as a sole owner, most common form of a small business, no legal entity can not be sued or sue, might require a license to operate

34
Q

Introduction to partnership

A

Not a legal entity, each partner is liable for all debts, has to have at least 2 or more partners, no partner can be an employee

35
Q

Partner Retirement

A

Often results in a holding out situation, use of retiring a partners name in firms name after retirement may trigger liability even for debts incurred after retirement

36
Q

Partnership Agreements

A

Dissolution of Partnership: termination of a partnership relationship
* If set up for a fixed term, upon expiry of the term*
* If set up for a single undertaking, by termination of the undertaking*
* If set up for unlimited term, by notice of any partner*
* By the death of a partner*
* By the bankruptcy of a partner*
* In cases as defined in the PS agreement
* If activity of the PS becomes illegal (e.g., due to a change in laws)
* By court order (courts apply high standard to dissolve PS)

37
Q

Limited Partnership

A

Must have at least one general partner with unlimited liability and one limited partner; general partner may be a corporation, can be an employee of a partnership

38
Q

Limited Liability

A
  • Is a hybrid between a general PS and corporation for example a group of accountants run a account firm as a LLP
39
Q

Joint and Several Liability

A
  • where partners individually and a group have liability for debt of partnership
40
Q

Corporate Law

A

designed for people to invest in a company and protects others, allow for different rules of different corporations; depending on the number of shareholders, reduces the cost of doing business

41
Q

Provinical and Federal Powers

A
  • Licences are discretionary but rarely refuses, name registration requirements of federally incorporated companies exist in all provinces
    • Provincial business has to obtain to federal laws
      and Federal Powers
    • Power to regulate companies in specific fields; banks, airlines etc.
    • Right to operate across Canada but does not have to and does not require a separate provincial license
42
Q

Nature of Corporations

A
  • Incorporation creates a new legal entity not a person whose rights and obligations are similar but not identical to those of a human being; corporation can own its own property, SH only have property like interest in the corporation through their shares, can sue and be sued in their name
    • Shareholders are not responsible for its debts, shareholders can also be creditors
    • Separate legal entity from shareholders and officers no direct ownership assets
43
Q

Process of incoporation

A
  • May be incorporated by any individual or corporation
    • An individual cannot incorporate a company if the person is less than 18 years, person is bankrupt, the person lacks capacity
    • Class and number of shares offered; define the name of classes shares, define rights, characteristics of each class shares determine their price
    • Numbers of directors: can be either a specific number minimum or maximum
    • Restrictions on share transfer and ownership: share transfer restrictions common for corporation
44
Q

Criminal Liability of Corporations

A
  • Under common law; criminal liability of corporation under common law remains relevant for non criminal codes offences
    • Under the criminal code; not required for person committing the crime to be the directing mind of cooperation
45
Q

Vicarious Liability

A
  • Of corporation for torts committed by its employees the employee can be personally liable
    • Direct Liability; of the corporation if the person committing/ authorizing the tort is not only an employee but the directing mind then acts of the person being equated with acts of the corporation itself
46
Q

Legal Scheme of corporate governance

A
  • Corporate governance addresses how power is allocated between shareholders, directors and officers
    • Share holders elect directors
    • Directors in turn appoint officers; manage and supervise the management while supervising business affairs of the corporation
    • Officers; exercise power delegated to them by directors, responsible for running day to day operations for the corporation
    • Shareholders: residual claim to assets of the corporation, vote for election of directors, vote on proposals made by directors
47
Q

Characteristics of Shares

A
  • Issuing shares as a primary way to raise capital for a corporation called equity financing instead of debt financing
    • A share is a bundle of rights against the corporation
    • Some basic rights that are associated with shares include; to vote at any shareholder meeting, receive dividends declared by the board of directors and if dissolution occurs receive the property of the corporation remaining after all creditors are paid
48
Q

Typical Classes of Shares

A
  • Common shares; no dividend entitlement until classes are paid
    • Usually voting shares can also be designed as non voting
    • Only residual claim upon dissolution whatever is left after others have been paid
    • Preferred shares; preference on receiving dividend payments, often very limited to no voting rights, preference on dissolution (return of capital for preferred SH)
49
Q

Dividends

A
  • Directors may distribute profits of the corporation to shareholders by declaring a dividend
50
Q

Shareholder Meetings

A
  • Directors are responsible for calling meetings
    • Meeting notice must be between 21 and 60 days
51
Q

Proxy

A
  • A person appointed to represent a shareholder at a shareholder meeting, we need them as it is not always possible to have all shareholders at every meeting, they can exercise shareholders votes, this agreement must be in writing and signed by the shareholder
52
Q

Shareholder Agreements

A
  • Common in cooperation’s with few shareholders, allow shareholders to customize their relationship and adjust their business need
    • Most shareholder agreements address; voting/management, share transfer and dispute resolution
53
Q

Shareholder Remedies

A
  • Derivative action on behalf of the cooperation; requires court appeal
    • Oppression remedy: is not limited to shareholders other stakeholders have access
54
Q

Directors

A
  • Individuals cannot be made directors without their consent, elected by shareholders at annual meeting by majority vote, 3 year term that is renewable
55
Q

Meeting of the board of directors

A
  • Directors meet every quarter, approve annual financial statements, issue sharing and declare a dividend
56
Q

Officers

A
  • Often called president, CEO or secretary, CEO has the responsibility of running a business day to day but delegates operations to other officers
57
Q

Fiduciary Duty

A
  • Requires officers and directors to act honestly and in good faith with a view of best interest of the cooperation
58
Q

Duty of Care

A
  • Requires officers and directors to exercise the care, diligence and skill
59
Q

Fiduciary

A
  • Is involved in personal capacity in transaction with the corporation, competes with the corporation
60
Q

Relying on others

A
  • Directors to rely on management and other professionals in discharging their responsibility to manage in the best interest of the corporation
61
Q

Shareholder Ratification

A
  • Ability of shareholders to approve a breach of fiduciary duty is limited under CBCA
62
Q

The duty of care

A
  • Exercise care, diligence and skill a prudent person would exercise in comparable circumstances, if a director missed a meeting
63
Q

Liabillity of Officers and Directors for Torts

A
  • Directors and officers may be liable for torts committed by themselves, degree in involvement of tort is considered, other information may be considered like the size of the corporation, number of employees and nature of the business
64
Q

Shareholder Remedies Derivative and Oppression SHORT Answer

A

Derivative action=wrong doing to the coperation on behalf of the corporation; requires court appeal, must be brought with intention to seek relief for the corporation, must have 14 days advance notice to board of directors indicating their intentions if directors fail to act, share holders must act in good faith

Oppression Remedy=wrong doing to stakeholder: is not limited to shareholder can be other stakeholders and creditors may have access. Examples of potential oppressive acts include, lack of valid corporate purpose for a transaction, lack of goof faith on the part of directors

65
Q

2 actions that can cause summary dismissal: SHORT ANSWER

A

Being fired can happen because an employee may have: damaging company property, stealing from the company and being dishonest about it, stealing customer information

66
Q

When to pierce the corporate veil? SHORT ANSWER

A

when there is a lack of respect for corporation, shareholders and managers, if the corporation acts as an agent for someone else like controlling a shareholder, if fraud exists,mixing personal finances with corporation finances

67
Q

Two actions corporations can discriminate against

A

If a job candidate is not bilingual and the position is required to be, another candidate may be a better alternative or if potential job candidate is under age such as a shareholder position for someone under 18 someone older would be a better alternative; overall the job applicant did not meet the bona fide requirements for the position or bardal factors ie maxium age requirement