New Uncertainty for Employment Contract Amendments

A modern trend in the law of contract variation has generated some excitement in the employment law world about whether companies may now be able to change employment contracts without providing fresh consideration (or a new benefit) to employees. That would make life easier for HR professionals. But a recent appellate decision will dampen some … Read more

“Saving Clause” to the Rescue? Employers Should Rely on Sound Drafting First

A recent case confirms (briefly put) that there is no substitute for the proper drafting of employment contracts. In Rossman v. Canadian Solar Inc. the Ontario Court of Appeal dealt a significant blow to the utility of “saving clauses” to salvage drafting errors when a termination provision is not compliant with employment standards legislation. This … Read more

Another “Saving Clause” Flubs the Rescue

A recent case dealt another blow to the utility of “saving clauses” to rectify drafting errors in employment contracts. The Court in Groves v. UTS Consultants Inc. found a clause ostensibly supplanting the employee’s right to reasonable notice of termination was unenforceable and the intention to contract out of the common law was not salvaged … Read more

Bonus Policies and Wrongful Dismissal Damages: Recent Cases Clarify How Employers Can Avoid Bonus Payments over the Notice Period

Companies generally don’t want to pay their dismissed employees bonuses that accrue after the termination date. But drafting policies to achieve that is easier said than done. The recent Ontario Court of Appeal decision Dawe v The Equitable Life Insurance Company of Canada, 2019 ONCA 512, provides an important example of a policy that was … Read more

Changing (or Litigating) Workplace Policy: The Requirement of Consideration

Workplaces are dynamic and workplace policies must evolve. However, effectively amending a workplace policy so that it is enforceable in court is not as straightforward as one might think. Changes to company policies can affect employee rights, benefits, or entitlements. For those changes to become enforceable elements of employment contracts, employers may have to provide … Read more

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