Section 16 Flashcards
Hana is home from university for the summer and has been hired as a house painter by Oleg, a family friend who owns a contracting company in Kenora, Ontario. The job was arranged informally after a quick phone call between Hana and Oleg to discuss work hours and pay. Oleg does not provide Hana with a formal employment contract, and after working for a week, Hana asks him about signing a contract. Oleg tells Hana that an employment contract is not necessary for a summer job. After working for a month, Oleg gives Hana a large employee handbook and insists that she read it in its entirety on her own time. Oleg tells Hana that she is expected to abide by the rules laid out in the handbook and he claims she agreed to do so when they first spoke on the phone a month earlier. Halfway through the summer, Oleg decides that he is not satisfied with Hana’s work and decides to cut her pay by $5 per hour, which she learns only when she receives her next paycheque. She is shocked and furious. Hana confronts Oleg about her docked pay and Oleg tells her that he has the right to reduce her pay because she has not performed to his expectations. Though Hana never signed a contract, does she have all the same rights that a signed employment contract would have provided to her? Why? a) Yes, because oral contracts are often as good as a written contract. b) No. Without a signed contract she is not entitled to coverage from the Workplace Safety and Insurance Board. c) No. Without a signed contract she is not entitled to the minimums imposed by the Employment Standards Act, 2000.
The answer is a. Yes, because oral contracts are often as good as a written contract. Functional Area: A2 Rationale(s): A is correct. Based on their original phone conversation, the 2 have created an oral contract. B is incorrect. An oral contract exists and Hana is protected as if she had a written contract. C is incorrect. Hana is working under an oral contract; however, she is protected by the ESA minimums. Reference(s): Unit 3: The Employment Contract, Module 2: Essentials of Contract
Hana is home from university for the summer and has been hired as a house painter by Oleg, a family friend who owns a contracting company in Kenora, Ontario. The job was arranged informally after a quick phone call between Hana and Oleg to discuss work hours and pay. Oleg does not provide Hana with a formal employment contract, and after working for a week, Hana asks him about signing a contract. Oleg tells Hana that an employment contract is not necessary for a summer job. After working for a month, Oleg gives Hana a large employee handbook and insists that she read it in its entirety on her own time. Oleg tells Hana that she is expected to abide by the rules laid out in the handbook and he claims she agreed to do so when they first spoke on the phone a month earlier. Halfway through the summer, Oleg decides that he is not satisfied with Hana’s work and decides to cut her pay by $5 per hour, which she learns only when she receives her next paycheque. She is shocked and furious. Hana confronts Oleg about her docked pay and Oleg tells her that he has the right to reduce her pay because she has not performed to his expectations. Hana spoke to some of her friends, who gave her advice about working without a contract. Which of the following is true? a) Because Hana’s contract is oral, she can be terminated without notice. b) Regardless of whether Hana has an oral or a written contract, the greater right or benefit principle still applies. c) Hana’s contract may have only been implied, in which case the Employment Standards Act, 2000 does not apply.
The answer is b. Regardless of whether Hana has an oral or a written contract, the greater right or benefit principle still applies. Functional Area: A2 Rationale(s): A is incorrect. Employees with oral contracts are still entitled to notice of termination. B is correct. This principle also applies to oral contracts. C is incorrect. The ESA applies to all employees, regardless of whether they have a written or oral employment contract. Reference(s): Unit 3: The Employment Contract, Module 2: Essentials of Contract
Hana is home from university for the summer and has been hired as a house painter by Oleg, a family friend who owns a contracting company in Kenora, Ontario. The job was arranged informally after a quick phone call between Hana and Oleg to discuss work hours and pay. Oleg does not provide Hana with a formal employment contract, and after working for a week, Hana asks him about signing a contract. Oleg tells Hana that an employment contract is not necessary for a summer job. After working for a month, Oleg gives Hana a large employee handbook and insists that she read it in its entirety on her own time. Oleg tells Hana that she is expected to abide by the rules laid out in the handbook and he claims she agreed to do so when they first spoke on the phone a month earlier. Halfway through the summer, Oleg decides that he is not satisfied with Hana’s work and decides to cut her pay by $5 per hour, which she learns only when she receives her next paycheque. She is shocked and furious. Hana confronts Oleg about her docked pay and Oleg tells her that he has the right to reduce her pay because she has not performed to his expectations. If Oleg had wanted to ensure Hana was bound by the rules outlined in the employee handbook, what steps should he have taken? a) He should have given Hana the handbook and required her to read it before her first day of work. b) He should have referenced the handbook in a written employment contract and had Hana sign to indicate she had read and understood the handbook. c) He should have stipulated in a written employment contract that Hana’s acceptance of the job was also an acceptance of the requirements in the handbook.
The answer is b. He should have referenced the handbook in a written employment contract and had Hana sign to indicate she had read and understood the handbook. Functional Area: A2 Rationale(s): A is incorrect. This step alone is not enough. B is correct. This is the correct action to take to ensure that employees are bound by an employee handbook. C is incorrect. This alone is often not sufficient to ensure that an employee is bound by the handbook. Reference(s): Unit 4: The Employment Contract, Part 2, Module 1: Implications of Contracts on the Workplace relationship
Hana is home from university for the summer and has been hired as a house painter by Oleg, a family friend who owns a contracting company in Kenora, Ontario. The job was arranged informally after a quick phone call between Hana and Oleg to discuss work hours and pay. Oleg does not provide Hana with a formal employment contract, and after working for a week, Hana asks him about signing a contract. Oleg tells Hana that an employment contract is not necessary for a summer job. After working for a month, Oleg gives Hana a large employee handbook and insists that she read it in its entirety on her own time. Oleg tells Hana that she is expected to abide by the rules laid out in the handbook and he claims she agreed to do so when they first spoke on the phone a month earlier. Halfway through the summer, Oleg decides that he is not satisfied with Hana’s work and decides to cut her pay by $5 per hour, which she learns only when she receives her next paycheque. She is shocked and furious. Hana confronts Oleg about her docked pay and Oleg tells her that he has the right to reduce her pay because she has not performed to his expectations. When Oleg refuses to pay Hana the amount that he docked from her paycheque, Hana quits on the spot and threatens to take legal action against the company. Is Hana’s case likely to be successful? Why? a) Yes, because employers cannot change the terms of employment retroactively. b) No, because they had no written contract and she was employed at the discretion of the employer. c) No, because employers can withhold pay for work performance deemed substandard.
The answer is a. Yes, because employers cannot change the terms of employment retroactively. Functional Area: A2 Rationale(s): A is correct. Her employer is not able to unilaterally change the terms of her contract. B is incorrect. Any change to a contract must be accompanied by fresh consideration. Contracts for employment do not need to be in writing and employment at discretion is an American legal concept that has no force in Canada. C is incorrect. This would be a very costly and complicated option that would open her employer up to needless liability. Reference(s): Unit 3: The Employment Contract, Module 2: Essentials of Contract Law of Work: “How can an employer amend an employment contract?” (http://lawofwork.ca/?p=956)
Hana is home from university for the summer and has been hired as a house painter by Oleg, a family friend who owns a contracting company in Kenora, Ontario. The job was arranged informally after a quick phone call between Hana and Oleg to discuss work hours and pay. Oleg does not provide Hana with a formal employment contract, and after working for a week, Hana asks him about signing a contract. Oleg tells Hana that an employment contract is not necessary for a summer job. After working for a month, Oleg gives Hana a large employee handbook and insists that she read it in its entirety on her own time. Oleg tells Hana that she is expected to abide by the rules laid out in the handbook and he claims she agreed to do so when they first spoke on the phone a month earlier. Halfway through the summer, Oleg decides that he is not satisfied with Hana’s work and decides to cut her pay by $5 per hour, which she learns only when she receives her next paycheque. She is shocked and furious. Hana confronts Oleg about her docked pay and Oleg tells her that he has the right to reduce her pay because she has not performed to his expectations. When reducing Hana’s pay, what should Oleg have done differently to limit the potential for legal action? a) He should have obtained Hana’s written agreement to the new terms. b) He should have provided fresh consideration, such as additional paid leave. c) He should have terminated Hana and then offered to rehire her at the lower rate of pay.
The answer is b. He should have provided fresh consideration, such as additional paid leave. Functional Area: A2 Rationale(s): A is incorrect. He would still need to provide fresh consideration. B is correct. Any unilateral change to a contract must be accompanied by fresh consideration, such as the employer providing additional benefits. C is incorrect. This would be a very costly and complicated option and would open the employer up to needless liability. Reference(s): Unit 3: The Employment Contract, Module 2: Essentials of Contract Law of Work: “How can an employer amend an employment contract?” (http://lawofwork.ca/?p=956).
