Planning Ahead to Deal With Termination Without Cause

by Brian Bell - Pace Law Firm: When a formal offer of employment is presented, termination is probably the last thing either the employer or the employee wants to think about.  But in this global  economy, there are no guarantees of employment until retired.   A considerable number of employers believe that on a termination “without cause” (ie. due to downsizing, business  downturn, and so on) all they need to do is provide the minimum as set out in the Employment Standards Act: 2000, Ontario.  By doing so, it might well be said that the employer is risking the fact that the costs of any wrongful dismissal will be less than they need to otherwise  pay out.

In a recent issue of Lawyers Weekly, author David Lublin points to a recent decision where the court with respect to the termination of a long serviced employee, awarded punitive damages in addition to full common law reasonable notice of 22 months (Brito v. Canac Kitchens [2011] O.J. No. 1117).

The employee had been provided with the Employment Standards minimum at the time of his termination without cause.

I have also had clients who after 20+ years of employment with the same employer receive the bare minimum that is required by the legislation.  And in this current uncertain economy, this thinking will likely continue.  So what to do?

In any offer of employment, companies should consider incorporating specific clauses dealing with termination without cause.  The offer of employment should spell out what the process would be should the employee be let go.  Essentially, such an approach gives the employee knowledge of what termination pay they might receive should they be terminated, and the employer is able to manage costs and risks based on the agreement between the two of them.

Neither party likes surprises. Neither party likes to spend unnecessary resources.  Planning ahead allows both the employee and the employer to manage their objectives.

Bill 168 and Workplace Violence

Brian Bell

by Brian Bell - Employment Attorney - Pace Law Firm: It has been a year since Bill 168 received Royal Ascent and was amended with the Occupational Health & Safety Act for Ontario (OHSA).

According to the Ministry of Labour, the changes to Bill 168 "strengthen protections for workers from workplace violence and address workplace harassment. They define workplace violence and harassment and describe employer duties, and...apply to all workplaces covered by the OHSA."

So what effect has this had since last year?  From my perspective,  I have seen two major reactions.

First, employees have become aware of their ability to file a complaint under the Act for such issues as bullying and verbal/physical intimidation.  Most of the complaints I've heard in the past year have been valid, while others have seemed a little shady; I have had inquiries claiming a bullying boss within the workplace that have appeared true, while I have had some that reflect the employer is simply requesting the employee to do their job satisfactorily and there is some resistance on the part of the employee.

On the other hand, I had one employer who in the name of the Act and ensuring compliance, took steps that in effect bullied the employees to such a degree that at least half the work force has resigned over the last year.

Employers may misinterpret the Act either on purpose or because they just don't understand it.  One employer, in response to an Order from the Ministry of Labour about a “domestic” issue overflowing into the workplace, felt that having a meeting with staff and championing the slogan “we want a safe workplace” was sufficient in meeting the requirements of the Act. I am sorry to say that having one meeting and coming up with a catchy phrase doesn't cut it. An educational program must be developed by employers in order to educate their staff, and employers must follow certain procedures to ensure compliance with the Act.

To learn more about what's involved in the Act, you can go to this link, or drop me an email here with any questions.

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