Employment and Labor Law

14 important questions on Employment and Labor Law

What distinguishes an employee from an independent contractor?

Employee include part time and fixed time hires, Tax is deducted
Independent contractors do not have tax deducted

How do you test whether someone is an employee or a contractor?

  • Degree of control of how work is done
  • Who owns the tools of production
  • Chance of profit or risk of loss in compensation (flat fee vs hourly)
  • How integral worker is to business

What is Employment Standards Compliance? Who does it apply to?

DOES NOT apply to professional engineers
DOES NOT apply to unionized workers
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What constitutes a situation where prior warning is not required for termination?

  • Fraud/theft
  • Sexual harassment
  • Insubordination - does not follow conduct
  • Unjustified lengthy absence
  • "Just cause"
  • Fixed term employments

What termination circumstances require notice?

  • Not for cause
    • Performance issues, fit issues, lack of work/restructuring
  • Employees hired indefinitely but with written agreement with a termination clause
  • Dependent contractors
    • Working for one client
    • Controlled by client in terms of service provision
    • Not allowed to work for competitor
    • Follow client policy

What does the ESA provide and not provide in terms of notice and severance?

  • ESA minimums for eligible employees (not contractors or unionized workers)
  • Does not include reasonable notice or severance in lieu
  • Courts can award extra severance for bad faith

What is constructive dismissal?

Employer negatively changes the terms of employment (reduces compensation, demotes, removes responsibilities, relocation)

What is a restrictive covenant? What makes a restrictive covenant enforceable?

  • Clauses that restrict an employee to solicit business after working for a certain employer
  • Resitricted by geography, temporal and acitvity, has to be clear

Who deals with human rights issues?

  • Human rights tribunal - separate from courts

In what cases are employers allowed to discriminate?

Level of education or experience or disability if it cannot be accommodated in the workplace

What does Labour Law govern?

Union-management relationship and employee-union relationships

What does labor law stipulate for union members?

  • Union can enter into employment contract on behalf of union member
  • Employer cannot negotiate directly with employee

What are the ultimate weapons in a labor dispute

Strikes and lockouts
Illegal under collective agreement

What is a risk in purchasing a business with respect to labour law?

Obligation to bargain with union

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