Scenario J Flashcards
Jayden works as a costume designer at Ajax Costume Supply, a company that specializes in theatrical costumes and set pieces from the Greco-Roman era. The company is good at what it does and maintains a small, skilled staff. Despite the quality of the company’s work, Ajax Costume Supply struggles to remain competitive in a niche market. Lately, the company has been feeling the crunch and the owner, Kristen, wants to make some changes, starting with Jayden. Kristen asks Julian, an HR consultant, to review Jayden’s contract to see if any changes can be made. Kristen hopes that if she makes drastic changes to Jayden’s contract, such as reducing his hours and rate of pay, he will resign and then she will not have to terminate him and provide him with notice. Kristen then wants to replace Jayden with casual staff who could work offsite and only as needed when the company takes on larger projects. Julian learns that Jayden started with the company 15 years ago, working his way up from floor sweeper to costume designer after displaying an innate talent for the trade. Jayden’s contract has not been updated since he started with the company and it does not mention anything regarding termination entitlements. Julian advises Kristen that to make changes to any contract, she must provide something in exchange. What does Kristen need to provide? a) Due consideration b) New consideration c) Fresh consideration
The answer is c. Fresh consideration Functional Area: A2 Rationale(s): A is incorrect. Due consideration is not the correct legal term. B is incorrect. While this is in keeping with the spirit of the law, it is not the correct term. C is correct. Fresh consideration must be provided; what form this consideration takes is up to the parties involved. Reference(s) Unit 3: The Employment Contract, Module 2: Essentials of Contracts.
Jayden works as a costume designer at Ajax Costume Supply, a company that specializes in theatrical costumes and set pieces from the Greco-Roman era. The company is good at what it does and maintains a small, skilled staff. Despite the quality of the company’s work, Ajax Costume Supply struggles to remain competitive in a niche market. Lately, the company has been feeling the crunch and the owner, Kristen, wants to make some changes, starting with Jayden. Kristen asks Julian, an HR consultant, to review Jayden’s contract to see if any changes can be made. Kristen hopes that if she makes drastic changes to Jayden’s contract, such as reducing his hours and rate of pay, he will resign and then she will not have to terminate him and provide him with notice. Kristen then wants to replace Jayden with casual staff who could work offsite and only as needed when the company takes on larger projects. Julian learns that Jayden started with the company 15 years ago, working his way up from floor sweeper to costume designer after displaying an innate talent for the trade. Jayden’s contract has not been updated since he started with the company and it does not mention anything regarding termination entitlements. Julian has reservations about Kristen’s plan, particularly with respect to Jayden’s contract. What factor is likely causing Julian concern? a) The contract has become obsolete. b) Jayden would now be considered an independent contractor because the contract has been unaltered for so long. c) The contract likely transformed into an oral contract after Jayden changed positions.
The answer is a. The contract has become obsolete. Functional Area: A2 Rationale(s): A is correct. An employment contract that has not been updated in 15 years, especially as the employee has changed roles, is obsolete. B is incorrect. Failing to update an employee contract does not change the status of that employee; it can, however, lead to the contract being obsolete, which could mean the employee is entitled to a great deal more termination notice than originally anticipated. C is incorrect. Jayden’s contract has become obsolete. Reference(s) Unit 4: The Employment Contract, Part 2, Module 2: Enforceability of Contracts.
Jayden works as a costume designer at Ajax Costume Supply, a company that specializes in theatrical costumes and set pieces from the Greco-Roman era. The company is good at what it does and maintains a small, skilled staff. Despite the quality of the company’s work, Ajax Costume Supply struggles to remain competitive in a niche market. Lately, the company has been feeling the crunch and the owner, Kristen, wants to make some changes, starting with Jayden. Kristen asks Julian, an HR consultant, to review Jayden’s contract to see if any changes can be made. Kristen hopes that if she makes drastic changes to Jayden’s contract, such as reducing his hours and rate of pay, he will resign and then she will not have to terminate him and provide him with notice. Kristen then wants to replace Jayden with casual staff who could work offsite and only as needed when the company takes on larger projects. Julian learns that Jayden started with the company 15 years ago, working his way up from floor sweeper to costume designer after displaying an innate talent for the trade. Jayden’s contract has not been updated since he started with the company and it does not mention anything regarding termination entitlements. Julian advises Kristen that if she makes major changes to Jayden’s contract to force him to resign, Jayden may have grounds for legal action against the company. What could Jayden likely claim? a) Termination without notice b) Constructive dismissal c) Revocation of terms
The answer is b. Constructive dismissal Functional Area: A2 Rationale(s): A is incorrect. While constructive dismissal and termination are often confused, this action is more likely to amount to constructive dismissal. B is correct. If Jayden were to resign as a result of fundamental changes to the nature of his employment contract, it could constitute constructive dismissal. C is incorrect. This is not a legal term that applies to this situation. Reference(s) Unit 4: The Employment Contract, Part 2, Module 2: The Enforceability of Contracts.
Jayden works as a costume designer at Ajax Costume Supply, a company that specializes in theatrical costumes and set pieces from the Greco-Roman era. The company is good at what it does and maintains a small, skilled staff. Despite the quality of the company’s work, Ajax Costume Supply struggles to remain competitive in a niche market. Lately, the company has been feeling the crunch and the owner, Kristen, wants to make some changes, starting with Jayden. Kristen asks Julian, an HR consultant, to review Jayden’s contract to see if any changes can be made. Kristen hopes that if she makes drastic changes to Jayden’s contract, such as reducing his hours and rate of pay, he will resign and then she will not have to terminate him and provide him with notice. Kristen then wants to replace Jayden with casual staff who could work offsite and only as needed when the company takes on larger projects. Julian learns that Jayden started with the company 15 years ago, working his way up from floor sweeper to costume designer after displaying an innate talent for the trade. Jayden’s contract has not been updated since he started with the company and it does not mention anything regarding termination entitlements. Kristen wonders whether, in light of the challenges to modifying Jayden’s contract, she can simply terminate him instead. What should Julian advise her? a) She can terminate Jayden with cause and not provide him with notice. b) She can terminate Jayden without cause and provide pay in lieu of notice. c) She can lay Jayden off and just not recall him, thereby avoiding providing notice.
The answer is b. She can terminate Jayden without cause and provide pay in lieu of notice. Functional Area: A1 Rationale(s): A is incorrect. There is no cause for termination. As Jayden is a long-time employee in a niche market, should he choose to sue, he would likely be entitled to considerable notice. B is correct. Termination without cause allows the company to provide Jayden with reasonable payment for his years of service and avoid a costly lawsuit. C is incorrect. If the layoff transforms into termination, Jayden would be owed notice because there was no just cause for terminating his employment. Reference(s) Unit 11: Termination, Module 3: The Employment Contract and Termination. Ontario Ministry of Labour: “Termination of employment”, https://www.labour.gov.on.ca/english/es/pubs/guide/termination.php.
Jayden works as a costume designer at Ajax Costume Supply, a company that specializes in theatrical costumes and set pieces from the Greco-Roman era. The company is good at what it does and maintains a small, skilled staff. Despite the quality of the company’s work, Ajax Costume Supply struggles to remain competitive in a niche market. Lately, the company has been feeling the crunch and the owner, Kristen, wants to make some changes, starting with Jayden. Kristen asks Julian, an HR consultant, to review Jayden’s contract to see if any changes can be made. Kristen hopes that if she makes drastic changes to Jayden’s contract, such as reducing his hours and rate of pay, he will resign and then she will not have to terminate him and provide him with notice. Kristen then wants to replace Jayden with casual staff who could work offsite and only as needed when the company takes on larger projects. Julian learns that Jayden started with the company 15 years ago, working his way up from floor sweeper to costume designer after displaying an innate talent for the trade. Jayden’s contract has not been updated since he started with the company and it does not mention anything regarding termination entitlements. Kristen asks for Julian’s advice about how to fill the vacant position once Jayden is gone. Based on her requirements, what type of worker should Julian recommend? a) An independent contractor b) A dependent contractor c) A regular employee
The answer is a. An independent contractor Functional Area: A2 Rationale(s): A is correct. Given the job requirements and the desires of management, an independent contractor seems like the ideal choice. Additionally, independent contractors do not enjoy protections under the ESA, which is beneficial for management. B is incorrect. Dependent contractors are essentially independent contractors with only one employer. The key difference is that they are entitled to notice of termination, which is likely not what Kristen wants. C is incorrect. A regular employee may have the experience needed and be able to work remotely, but he or she will prove much costlier than an independent contractor. Reference(s) Unit 4: The Employment Contract, Part 2, Module 3: Employees and Independent Contractors.
