GET THE 10 HR POLICIES EVERY EMPLOYER MUST HAVE: Go to http://hrinsider.ca/articles-insight/10-policies-every-employer-needs HR Compliance Your Plain Language Guide to Hiring, Firing, Human Rights, Benefits & Privacy Volume 8 Issue 8 August 2012 TERMINATION Can You Fire Employees for Being Late? FEATURES Termination THIS STORY WILL HELP YOU 1 Is being late just cause for termination? Figure out when coming late to work is just cause for terminaton Model Lateness Policy (p. 4) Y ou can’t fire an employee for showing up late for work once in a while. But lateness can become just cause for termination if the problem continues and gets more serious. At what point does lateness cross the line? It’s a question that not only HR directors but courts and arbitrators have struggled with for decades. By breaking down the case law, we can scope out 9 benchmarks that you can use to determine whether you have a sound legal case to fire one of your own employees for chronic lateness. There’s also a Model Lateness Policy on page 4 that you can adapt. CONTINUED ON PAGE 2 IMMIGRATION How to Hire Temporary Foreign Workers THIS STORY WILL HELP YOU Get a Labour Market Opinion and work permit for a temporary foreign worker T emporary foreign workers (TFWs) can make valuable contributions to your organization. But hiring a TFW may require that you get a Labour Market Opinion (LMO) from Service Canada. Here’s what HR managers need to know to navigate the LMO process; we’ll also show you how to take advantage of a new HRSDC program that enables you to get an accelerated Labour Market Opinion for a highly skilled TFW in just 2 weeks rather than the usual 3 months. What Is a Labour Market Opinion Like other free market economies, Canada seeks to balance the virtues of immigration with the need to protect its own citizens from unfair foreign competition. The LMO process allows Service Canada to strike this balance on a case-by-case basis. To get a positive LMO (aka an “employment confirmation”), the employer seeking to hire the TFW must show that it can’t find suitable Canadians/permanent residents for the job and that letting the applicant work in this country won’t have a negative effect on the Canadian labour market. It typically takes about 3 months to secure a positive LMO. CONTINUED ON PAGE 9 Immigration 1 Temporary Foreign Workers, 101: How to deal with Labour Market Opinions, Work Permits, etc. REGULARS Absenteeism 4 HR Month In Review 5 Constructive Dismissal 5 HR Trends: Absenteeism is on the rise. But why? Key legal changes and cases in each province, territory and federally Case of the Month: The difference between resignation and termination/constructive dismissal Age Discrimination 11 Drugs & Alcohol 12 Quiz: Mandatory retirement of employees if they’re not cutting the mustard Winners & Losers: Why catching employees in the act of smoking pot may still not be enough to fire them IN FUTURE ISSUES Background Checking & Keeping Violent People Off Your Payroll Dress Codes: Drawing the Line Employee Freedom & Workplace Decorum Severance Agreements: 8 Termination Notice Traps to Avoid How Far Can You Go to Control Disruptive Union Organizing? HR W Compliance Insider 2 hr compliance insider Board of Advisors Hugh A. Christie Gowling, Lafleur, Henderson, LLP Toronto, ON 1. Was the employee’s lateness problem serious enough? 2. Was the termination process fair? PHASE 1: JUDGING THE SERIOUSNESS OF LATENESS Vicki L. Giles, LLB McLennan Ross LLP Edmonton, AB Termination without cause—the employment law equivalent of capital punishment—is appropriate only for egregious offences, i.e., violations that permanently and irreparably destroy the employer’s trust. Does lateness rise to that level? The answer varies from case to case. But, while there are no per se rules, there are general guidelines from court cases you can use to judge whether you have solid legal grounds to fire employees for lateness. Maria McDonald, LLB Dykeman Dewhurst O'Brien LLP Toronto, ON Ken Krohman McKenzie Fujisawa Vancouver, BC 1. Occasional Lateness Isn’t Just Cause Just about all employees show up late on occasion. You might feel personally offended by this; you might even feel like the employee is “stealing” from you. But when judging just cause, you can’t rely on your personal sensibilities. And in the eyes of judges and arbitrators, occasional lateness is only minor misconduct, meriting a warning at most. Greg McGinnis Heenan Blaikie Toronto, ON Robert Smithson Smithson Law LLP Kelowna, BC 2. Repeated/Chronic Lateness May Be Just Cause Lateness starts getting serious when it keeps on happening over and over again. But it’s not just a numbers game. High incident rates suggest that lateness isn’t simply a matter of punctuality but a larger attitude problem symptomatic of an employee who either doesn’t care enough or deliberately chooses not to show up on time. R. Ross Wace Wace & Associates Mississauga, ON Compliance ™ Your Plain Language Guide to Hiring, Firing, Human Rights, Payroll & Privacy To prove just cause, the employer must demonstrate that the employee’s lateness “prejudices the proper conduct of its business.” CONTRIBUTING WRITERS: PAULA SANTONOCITO SHERYL SMOLKIN Example: Lateness that harms performance just cause to fire sales director [Franco v. Youthink Publishing Inc., [2008] B.C.J. No. 2526, Dec. 11, 2008]. PRESIDENT AND CEO: ROB RANSOM Example: Just cause to fire municipal clerk whose constant lateness has “disconcerting effect on the rest of the staff” and forces co-workers to do her job duties [Elliott v. Parksville (City), (1990) 66 D.L.R.(4th) 107]. HR Compliance Insider is published by Bongarde Holdings Inc. and is intended for in-house use only – commercial reproduction is a violation of our copyright agreement. This publication is designed to provide accurate and authoritative information on the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting or other professional services. If legal or other expert assistance is required, the services of a competent professional should be sought. 4. Lateness May Be Just Cause When Coupled with Other Offences So far, we’ve been talking about lateness as if it were the only thing an employee does wrong. But in many cases, lateness is just one of a litany of performance- and attitude-related offences. And, of course, the more offences an employee commits the better the case for termination without notice. R E SH & To order a subscription to HR Compliance Insider for $397/12 months – please call our customer service center at 1-800-667-9300. Fax TRONIC PU EC BL EL I 1-250-493-1970 or visit our website at www.hrinsider.ca EDITORI Printed in Canada. August 2012 © Bongarde • www.hrinsider.ca FOUNDATIO N AL EXCELL ENCE AWARD WINNER RS NEWSLETTE Example: 78 incidents of lateness in 3 years suggest conduct is deliberate and constitutes just cause to fire a customer service representative [Convergys Customer Management Inc. v. Luba, [2005] M.J. No. 51, March 7, 2005]. 3. Lateness Must Harm Your Business Managing editor: GLENN S. DEMBY Publications Mail #40065442. WHAT THE LAW REQUIRES The question of whether lateness is just cause boils down to 2 things: David S. Cohen, EdD Strategic Action Group Toronto, ON HR IS LATENESS JUST CAUSE? CONTINUED FROM FRONT Example: Just cause to fire cabinet maker not just because he’s chronically late but also for repeated mistakes, arguing with co-workers and customers and failing to properly lock up the shop at night [Khoziry v. Yaletown Office Furniture Ltd., [2004] B.C.J. No. 1096, May 4, 2004]. CONTINUED ON PAGE 3 HR W Compliance Insider 3 IS LATENESS JUST CAUSE? CONTINUED FROM PAGE 2 5. OK to Hold Probationary Employees to Stricter Standards You don’t need to prove just cause to fire probationary employees during the probationary period. All you need show is that you found the probationary employee to be “unsuitable” for the job and that your decision wasn’t arbitrary. Accordingly, you can be much stricter with probationary employees on matters of punctuality. Example: Repeated lateness supports employer’s decision to fire probationary employee as unsuitable for heavy-duty cleaning job [de Freitas Grievance, [2010] O.L.A.A. No. 281, June 4, 2010]. PHASE 2: MANAGING THE DISCIPLINARY PROCESS Some offences are so egregious that a single incident may constitute just cause. Not so with lateness. The proper response to lateness is progressive discipline. 6. You Must Warn Employees This might be the most important point in the whole story. You have no chance of making termination for lateness stick unless you provide clear, written warning: 77 Letting the employee what he did wrong; 77 Telling him what he has to do to improve; and 77 Explaining that he can lose his job if he doesn’t improve. Example: No just cause to dismiss operations superintendent who received glowing performance reviews, was never warned about lateness or told she could lose her job if she didn’t correct it [Rutkowski v. Edmonton Transit Mix & Supply Co. Ltd., [2007] A.J. No. 1197, April 27, 2007]. Example: Just cause to fire dock worker who was put on 90 days’ probation for lateness, clearly warned that this was his last chance but still failed to improve [Fields v. ERB Transport Ltd., [2007] C.L.A.D. No. 344, Sept. 12, 2007]. The flipside of warning is condonation, i.e., letting an employee get away with coming to work late. Condonation lulls the employee into a false sense of security and makes it harder for you to put your foot down later. Example: No just cause to fire photographer for lateness after 5 years of letting her imperiously come and go as she pleased [Cain v. Roluf’s Ltd. (Roluf’s Camera Centre), [1998] O.J. No. 661, Nov. 13, 1988]. 7. There Must Be a Convincing “Culminating Incident” Being late once isn’t termination worthy; nor is being late twice, or even 3 times. But numbers of incidents matter over time. The important thing is to stay the progressive discipline course and give the employee a fair chance at redemption. If the employee keeps on ignoring the warnings and showing up late, there may come a point when that next episode of lateness proves the straw that breaks the camel’s back. This is called the “culminating incident”—the moment when the employer concludes that progressive discipline has run its course, the employee can’t be salvaged and termination is the only option. As you’d expect, courts take a good hard look at culminating incidents to ensure they’re compelling enough for the employer to reach that conclusion. Example: Being 2 minutes late not a legitimate culminating incident, especially since it was the first time in the previous 6 months that the employee had been late at all [Prokopowicz Grievance, [2010] O.L.A.A. No. 181, April 12, 2010]. Example: 7 minutes late is culminating incident where employee was headstrong, locked in a power struggle with her boss and deliberately showed up late to protest his authority [Galloway Grievance, [2003] O.L.A.A. No. 493, Aug. 19, 2003]. Example: No just cause to fire grain operator who readily acknowledged his lateness issues, made proactive efforts to address the family problems that caused them and had what the judge considered a solid excuse for showing up late in the culminating incident—he overslept because a crisis with his troublesome son kept him up the entire night [Viterra v. Grain Workers’ Union, Local 333, [2012] B.C.J. No. 493, March 12, 2012]. 8. Disciplinary Procedures Must Be Scrupulously Followed Progressive discipline is as much about procedure as substance. When an individual’s job is on the line, courts are apt to seize upon the smallest of procedural irregularities, breakdowns or inconsistencies to knock the penalty down. Example: No just cause to fire recently widowed father of 5 for lateness because his case wasn’t reviewed by a supervisor as required by the progressive discipline policy [Jazarevic v. Schaeffler Canada Inc., [2010] O.J. No. 1804, April 30, 2010]. 9. There Must Be Proper Documentation Employers have the burden of proving just cause. To meet this burden, you must have records documenting: 77 Your standards for employee punctuality; 77 What the employee did to violate those standards; and 77 The disciplinary actions you took to enforce the standards. Example: Just cause fails where employer claims manager was “frequently late” but can’t produce time records to prove it [Harbour Air v. Maloney, [2012] C.L.A.D. No. 105, March 27, 2012]. Example: Employer claims mechanic was constantly late but attendance records suggest he was late no less often than any of his co-workers and that the real reason he was fired was for going on disability with a bad back for the second time [Krenz v. Blue Max Auto Care Ltd., [2001] B.C.J. No. 1005, April 4, 2001]. CONTINUED ON PAGE 4 August 2012 © Bongarde • www.hrinsider.ca HR W Compliance Insider 4 IS LATENESS JUST CAUSE? CONTINUED FROM PAGE 3 Conclusion To sum up, you can’t fire employees for occasional lateness. But lateness may be just cause if: 77 It’s a chronic problem; 77 It hurts your business; 77 The employee gets clear warning and a chance to improve; 77 The employee doesn’t take advantage of this opportunity; 77 There’s no reasonable prospect of salvaging the situation; and 77 You follow your disciplinary procedures to the letter. HR TRENDS Absenteeism on the Rise 9.0 MODEL LATENESS POLICY Here’s a Model Policy on punctuality and lateness that you can adapt based on the terms of your collective agreements (or individual employment contracts, if you’re workforce isn’t unionized) and circumstances of your particular operations and workplace. MODEL PUNCTUALITY & LATENESS POLICY 1. POLICY All employees are expected to begin work at the scheduled time. Coming to work on time is not just a formality. Employee lateness reduces available work time and may result in the disruption of other employees’ work schedules and customer service. 2. DEFINITION OF LATENESS 8.5 For purposes of this Policy, lateness means reporting to work or punching in anytime after the employee’s scheduled start time or reporting back from lunch more than one hour from the start of lunch. 8.0 7.5 7.0 6.5 6.0 3. LATENESS PROCEDURES 5.5 3.1 Minor Lateness 5.0 Each time you are 10 minutes or less late, you must explain why you were late to your supervisor when you arrive at work. Repeat occurrences of minor lateness, i.e., 10 minutes or less, will be addressed through the Company progressive discipline policy. 4.5 4.0 3.5 3.0 2.5 3.2 Major Lateness 2.0 1.5 1.0 0.5 0.0 Incidence 2000 Illness or Disability Family or Personal Responsibilities 2010 Absenteeism has steadily grown in the past decade. Why? It’s not just illness. Thus, in a recent UK study, 57% of employees admitted to taking time off when they weren’t ill. Among them: • 22% cited family and personal responsibilities; • 10% cited emotional problems like breaking up with a girl/boyfriend; and • 6% said they just didn’t feel like dealing with a difficult work situation. August 2012 © Bongarde • www.hrinsider.ca Each time you are running more than 10 minutes late, you must phone your supervisor to indicate when you expect to arrive at work. Having a friend or co-worker call in on your behalf is not acceptable except in the case of an emergency. Failure to phone in will result in a verbal warning unless you can show that there were uncontrollable circumstances for which you’re not to blame that prevented you from making the call. Supervisors will assess the situation before resorting to the Company progressive disciplinary policy. Time sheets will reflect the actual time of arrival and the employee will not be paid for the missed time. 4. SCHEDULE VARIATION Supervisors may, at their discretion, allow minor variations in working hours to allow for exceptional individual circumstances. However, all employees are expected to work a full scheduled week of the appropriate number of hours. The employee will be given the opportunity to make up lost time if productive work is available. HR HR HRW W WCompliance Compliance ComplianceInsider Insider Insider 5 HR Month in Review A roundup of important new legislation, regulations, government announcements, court cases and arbitration rulings. CASE OF THE MONTH Ontario Case Sheds Light on Difference between Resignation & Termination With apologies to Donald Trump, saying “you’re fired” isn’t the only way for an employer to end an employment relationship. Some wrongful terminations are actually initiated by employees who prefer to leave rather than accept unfavourable changes unilaterally imposed by their employers. Since it’s the employee who walks out the door, these terminations raise a crucial legal question: Did the employee resign voluntarily or get fired/constructively dismissed? At stake is more than semantics and pride: Employees who resign don’t get termination notice and other damages; employees who are fired or constructively dismissed do. A new (May 2012) case from Ontario sheds light on how these cases get sorted out. THE CASE What Happened: After taking over the business, the new owner of a hearing aid company decided to retain the office manager in her current job with the promise of a 15% equity share after 5 years. But the owner soon came to see the manager as heavy-handed; the manager questioned the owner’s commitment to the business. After 3 years of tension, things came to a head. Saying that the situation couldn’t continue, the owner changed the manager’s duties, removed her from customer contacts, took away her free bonus trips and other perks and even insisted she use the rear entrance. The manager refused to accept the new conditions and left. What the Court Decided: The Ontario Superior Court ruled that the manager was terminated and didn’t resign voluntarily. How the Court Justified Its Decision: A resignation must be “clear and unequivocal,” the court explained. The manager didn’t do or say anything to evidence such intent. It was the owner who repudiated the original deal by unilaterally changing the fundamental terms of her employment. All the manager did was let the owner know that she rejected the new terms offered. So the relationship was wrongfully terminated by the owner, the court concluded, and awarded the manager $256,902, including $180,000 for the equity share she never got. Loyst v. Chatten’s Better Hearing Service, [2012] O.J. No. 1995, May 7, 2012 ANALYSIS The real significance of Loyst is the light it sheds on the interplay among resignation, termination and constructive dismissal. Starting point: When it comes to unilateral changes to fundamental contract terms, employers can’t force employees into a take-it-or-leave-it position. Employee’s Options: What employers can do is notify employees of the change. Employees then have 2 options: 77 Accept the change, either expressly or implicitly by continuing to work under the new terms without objection; or 77 Reject the change and demand that the employer stick to the original deal. If the employer insists on unilaterally implementing a change the employee rejects, the employee can then either: 77 Leave right away and sue for wrongful termination; or 77 Stay on the job and sue for constructive dismissal. Employer’s Options: Once employees serve clear notice that they reject the proposed changes, the employer has 3 choices: 77 Back off and follow the original agreement; 77 Implement the change unilaterally and risk a constructive dismissal lawsuit; or 77 Terminate the employee with proper notice (in which case, the employer may then offer re-employment under the new terms). What the employer can’t do is what the owner did in Loyst: Treat the manager’s rejection of the new terms as a resignation and not pay proper termination notice. Skilled Trades May 9: The Assembly passed a resolution calling on the government to press forward on various initiatives in the skilled trades, including: 77 Introduction of a Journeyperson Mentorship Program 77 Expansion of the Apprenticeship Wage Subsidy Program 77 Registration of pre-apprentices in a tracking system for students completing entry level skilled trades programs. Human Rights May: A UN committee ruled that a government housing authority discriminated against aboriginal women by allowing the non-aboriginal and abusive husband of Cecilia Kell claim the couple’s Belchoko home. Ms. Kell had brought a court action against her husband but had her case dismissed because she couldn’t pay the required legal fees. The committee recommended giving Ms. Kell a home, paying her damages and training more aboriginal women to work in legal aid. LAWS & ANNOUNCEMENTS NUNAVUT LAWS & ANNOUNCEMENTS NT NL LAWS & ANNOUNCEMENTS Domestic Violence May 23: Nunavut and Northwest Territories claimed the dubious distinction of having Canada’s highest domestic violence rates. The overall national average was 294 reported incidents per 100,000 people. At 430 per 100,000, Manitoba’s rates were also alarmingly high. August 2012 © Bongarde • www.hrinsider.com HR HRWWCompliance ComplianceInsider Insider 6 FEDERAL LAWS & ANNOUNCEMENTS CASES Employment Insurance May 17: The government proposed legislation that would extend the Best 14 Weeks pilot another year and make the Best 14 Weeks calculation formula, indexed by local market conditions, permanent effective April 7, 2013. Company Must Keep Injured Employee on Payroll despite 21-Year Absence For 21 years, a transport company kept an employee who lost part of his right arm in a work injury on its payroll and maintained monthly contributions to his health and pension plans. In Jan. 2011, it finally ended his employment and his benefits. Put that guy back on payroll, the arbitrator ordered. Firing the employee for being absent with a work-related injury coupled with at least 16 years of failure to accommodate him was a violation of the Canada Labour Code, the arbitrator reasoned [Kingsway Transport v. Teamsters, Local Union 91 (Sears Grievance), [2012] C.L.A.D. No. 115, April 17, 2012]. Privacy May 4: Canadian businesses are digitally storing more personal data than ever but not doing enough to protect it, according to a new Privacy Commission study. Although 73% of 1,006 respondents say they use passwords, encryption, firewalls or other tools to prevent unauthorized access, they may not be using the technology effectively. For example, 39% of businesses that use passwords don’t have controls in place to ensure passwords are hard to guess; an additional 27% said they don’t require employees to change their passwords. Pensions May 3: OSFI issued a Pension Assessment Remittance Form to help plan administrators calculate and remit their annual pension assessments. Annual assessments must be paid no later than 6 months after the end of the plan year (or the date of registration if it’s a new plan). ALBERTA LAWS & ANNOUNCEMENTS CASES Minimum Wage May: Alberta will hike its minimum wage 35¢ to $9.75 per hour on Sept. 1, 2012. The minimum wage for liquor servers will remain $9.05 until the general minimum wage hits $10.05. Thereafter, the rates will remain exactly $1.00 apart. Boss’s Email Inflicts Mental Stress that Workers’ Comp Covers This cutting edge case began when an employee got an email from her manager as part of a thread that included notes from the latter making personal and disrespectful remarks about the former to 2 other managers. The employee was so upset she had to take time off and seek medical treatment for an adjustment disorder. Workers’ comp originally denied her claim for psychological injury benefits but the Commission reversed. Getting written records containing negative remarks about you from your boss isn’t just the normal pressure that average workers experience; it was unusual and excessive and caused the employee’s stress, said the Commission [Decision No: 2012-434, [2012] CanLII 25284 (AB WCAC), May 10, 2012]. Workers’ Compensation May 4: The Ministry of Human Services and WCB announced that nearly 10,000 employers had qualified for $72.2 million in PIR rebates, i.e., workers’ comp rebates under the Partnerships in Injury Reduction Program. PIR rebates go to employers that implement efficient health, safety and return-to-work programs. PIR participants have a 31.7% lower ratio of claim costs to premiums paid than other employers, the WCB noted. NEW BRUNSWICK LAWS & ANNOUNCEMENTS CASES Apprenticeships May 15: New Brunswick proposed major revisions to the apprenticeship system involving the creation of a new apprenticeship and occupational certification board made up of industry representatives that would set general program requirements, designate voluntary occupations, make exemptions to compulsory trades and determine certification criteria. The government would keep responsibility for overseeing the system, setting budgets and ensuring fair wages of apprentices. Does Workers’ Comp Cover Injury after Worker Quit? Four days after quitting his job, a trucker went back to the workplace to remove personal belongings from his truck, slipped and injured his shoulder. Workers’ comp denied his claim because the injury occurred after his last day of work and while he was performing a non-work-related task. But the Appeals Panel disagreed, ruling that returning toll money and keys to the employer and cleaning out the employer’s truck are actions incidental to employment and thus work-related under workers’ comp [Re: 20126400, [2012] CanLII 21141 (NB WHSCC), April 18, 2012]. Workplace Safety May 8: WorkSafeNB released the 2011 year-end results. Highlights: 77 8,751 companies inspected 77 6,782 orders issued 77 Lost time accident frequency of companies targeted for intervention decreased 18.9% since 2010 and 32% since 2001 77 Musculoskeletal injuries down 3% for all industries, 20% for targeted supermarkets. LAWS & ANNOUNCEMENTS QUÉBEC YUKON Minimum Wage May 1: The Yukon minimum wage went from $9.27 to $10.30 per hour, second highest in Canada behind only Nunavut at $11. Future increases will be indexed according to the annual Consumer Price Index for Whitehorse. August 2012 © Bongarde • www.hrinsider.com LAWS & ANNOUNCEMENTS CASES Minimum Wage May 1: The Québec minimum wage went up a quarter to $9.90 per hour. The minimum wage for employees who earn tips also increased 20¢ to $8.55. Stevedoring by Local Company Subject to Provincial, Not Federal Regulation The CSST and Court of Appeal ruled that the stevedoring operations of a heavy equipment rental company were subject to provincial, not federal OHS regulation. The Supreme Court of Canada agreed. Stevedoring is normally associated with interprovincial commerce and shipping. But all of the company’s operations were carried out within Québec. Stevedoring was just a small part of operations and was integrated with the company’s overall operations which were distinctly local in character [Tessier Ltée v. Québec (CSST), [2012] S.C.J. No. 23, May 17, 2012]. Workers’ Compensation May 17: The CSST set the 2013 average contribution rate at$2.08 per $100 of payroll, a nickel less than in 2012. HR HR HRW W WCompliance Compliance ComplianceInsider Insider Insider 7 BRITISH COLUMBIA LAWS & ANNOUNCEMENTS CASES Minimum Wage May 1: The BC minimum wage increased to $10.25 per hour, $9.00 for liquor servers. Non-hourly rates paid to camp leaders, live-in home support workers and resident caretakers were also adjusted proportionally. Temporary Foreign Workers Can Bring Class Action Wage Claim against Denny’s A group of about 70 temporary foreign workers from the Philippines are suing the Denny’s restaurant chain for wage and hour violations and charging improper recruitment fees. There are 2 things about the case that make it very significant: 1. It’s one of the first to invoke ESA protections to temporary foreign workers; and 2. The court said it could go forward as a class action lawsuit [Dominguez v. Northland Properties Corp., 2012 BCSC 328 (CanLII), March 5, 2012]. Workers’ Compensation May 2: The government tabled a revised version of Bill 14, which would expand workers’ comp coverage of mental stress claims. Currently, workers’ comp deems mental stress work-related only if it’s the result of a discrete traumatic event that happens at work, e.g., witnessing the death or dismemberment of a co-worker. Tweaks: 77 Revise wording—from “mental stress” to “mental disorder” 77 Require diagnosis from psychiatrist or psychologist 77 Bullying and harassment significant work-related stressors 77 “Predominant cause” test to determine if mental disorders caused by significant work-related stressors. Workplace Bullying May 2: BC is working on a plan to crack down on workplace bullying and harassment. Highlights: 77 Broaden definition of workplace “violence” under current OHS law to include psychological abuse, intimidation, etc. 77 Require employers to have formal workplace bullying prevention plans 77 Develop toolkits to help employers prevent bullying in the workplace. Discriminating against Employee with HIV Costs Company $27K A cleaning employee on medical leave knew the company held him in high regard and thought he’d be welcomed back with open arms when he got better. He was wrong. Why did the company tell him there was no work available when he wanted to return? It’s because they found out I was HIV positive, the employee claimed. The Human Rights Tribunal agreed saying that the company’s foot dragging on his return-to-work was sudden, unexpected and due at least in part to his HIV status. So it awarded the employee $20,000 in damages + $7,000 in lost wages [Malin v. Ultra Care Cleaning Systems Ltd., [2012] BCHRT 158 (CanLII), May 9, 2012]. Not Discrimination to Fire Disabled Employee Who Isn’t Going to Improve After keeping open the position of a glazier on disability leave with a potentially blinding eye condition and paying his medical bills for 4 years, a glass company decided to cut ties and terminate his employment. The glazier sued for disability discrimination but the Human Rights Tribunal dismissed his claim ruling that the company had reached the point of undue hardship. The glazier’s condition was permanent and not going to improve. And the duty to accommodate doesn’t require an employer to keep a position open indefinitely [Hargrove v. Phoenix Glass Inc., [2012] B.C.H.R.T.D. No. 133, April 19, 2012]. Arbitrator Orders Reinstatement of Employee Fired for Using ‘F’ Word An employee was fired for using the “f” word while discussing the denial of his short-term disability benefits claim with the case manager. The arbitrator upheld the union’s grievance and ordered the employee reinstated. In deciding upon termination, the employer relied on the case manager’s account of the incident without conducting its own investigation. Moreover, even if the allegations were true, the incident wasn’t by itself enough to justify termination. The employee should have gotten a written warning, said the arbitrator [Teamsters Local Union No. 213 v. Canplas Industries Ltd. (Boyko Grievance), [2012] B.C.C.A.A.A. No. 47, April 28, 2012]. NOVA SCOTIA LAWS & ANNOUNCEMENTS CASES Labour Relations May 10: Proposed Bill 89 sets rules for resolving collective bargaining disputes in health and community care. Thrust: Replace employees’ right to strike and employers’ right to lock out with right of both to engage in “interest arbitration.” Initially, the sides would try to work out a deal via a conciliation officer. If that fails, either side could bring the dispute to interest arbitration for immediate resolution that’s fair to both sides and in the public’s best interest. If passed, the new rules would take effect Jan. 1, 2013. Injured Employee Wasn’t in Union Long Enough to Qualify for Pension A pension plan required members to work at least 300 years as a union member. A veteran longshoreman who finally became a union member after 26 years of service was able to work only 245 more hours before becoming permanently disabled. The longshoreman claimed the hours for which he was credited under workers’ comp should have counted toward his service eligibility; he also argued that even if he hadn’t put in the necessary 300 hours, the plan had sent him benefits statements and was thus “estopped” from denying he was a member. But the court disagreed on both accounts and the appeals court upheld its decision to toss out his case [Downey v. Cranston, [2012] N.S.J. No. 234, May 8, 2012]. Workers’ Compensation May 9: A private member’s bill—Bill 85—would include auxiliary members of municipal police departments and RCMP detachments “workers” covered by Nova Scotia workers’ comp. The bill also stipulates that training exercises, traveling to and returning home from emergencies are work-related activities for workers’ comp purposes. LAWS & ANNOUNCEMENTS SASK. Garnishments May 16: Saskatchewan approved Bill 29 changing the rules for (family support) maintenance orders. Highlights: 77 New formula for calculating interest on payment arrears 77 Rather than garnishment, orders to be enforced by seizure of accounts 77 Joint and several liability of payor’s employer for payments 77 Recipient may seize account of payor’s debtor to enforce order. Workplace Safety May 17: Saskatchewan passed OHS Act amendments, erstwhile Bill 23. Highlights: 77 Maximum penalty for serious injury/death from $300K to $1.5 million 77 Clarify training, supervision, instruction and equipment maintenance duties 77 Sites with employees of 2 or more employers must designate “prime contractor” to implement safety plan 77 Employers must develop violence prevention plan if violence occurs 77 Government may order multiple health and safety committees at site. Pension Reform May 16: The pension reform law previously known as Bill 4 has now taken effect. The key provisions affect agreements involving multi-jurisdictional plans, i.e., plans covered by more than one province’s/federal pension law. Highlights: 77 PNew agreements must be approved by lieutenant-governor-in-council 77 Government must publish each approved agreement in Gazette 77 Additional requirements apply where Saskatchewan government is party to agreement. August 2012 © Bongarde • www.hrinsider.com HR HRWWCompliance ComplianceInsider Insider 8 ONTARIO LAWS & ANNOUNCEMENTS CASES Workers’ Compensation May 4: The headline news in Ontario this month was the release of the Arthurs Commission workers’ comp reform recommendations. Highlights: (Go to www.hrinsider.ca for a complete analysis) 77 Base premiums on actual costs of insuring by “sectoral group” 77 Crack down on employer experience rating abuses 77 Require employers to designate Health Safety and Insurance Officers 77 Take away premium breaks of employers that commit reprisals 77 Stricter accident reporting requirements. Boss’s New Wife Poisons the Workplace For 12 years, work was peaches and cream for the secretary of Dr. Blach’s medical clinic. But it all went sour when the doctor got remarried and brought his new wife to work in the office. The new Mrs. Blach bombarded the secretary with complaints and told her she was overpaid $15,000 as a result of an “error” that would be corrected. It got so tense that the secretary went on medical leave, never to return. The court agreed that the secretary was constructively dismissed as a result of a poisonous work environment and awarded her 9 months’ notice-$32,676—plus interest [Drake v. Blach, 2012 ONSC 1855 (CanLII), March 21, 2012]. Pensions—Grow-In Benefits May: The Superintendent posted for public comment draft changes to Ontario pension regulations scheduled to take effect on July1, 2012, providing clarification on: 77 Grow-in benefits for members of wound up plans 77 Grow-ins for members who get fired for other than “willful misconduct” 77 Election to opt out of providing grow-in benefits by existing jointly sponsored plans and administrators of multiple employer plans 77 Superintendent’s power to order plans to wind up. Pensions—Disclosure May 9: The government published draft regulations on plan disclosure requirements: 77 Plan records to be made available to administrator upon request for inspection 77 Administrator may provide plan records via mail or electronically 77 Defined benefit plan administrators must file investment information summary. Pensions—Jointly-Sponsored Plans June: Comments on jointly-sponsored public pension regulations ended. On the table: 77 Make plans cut future or ancillary before increasing employer contributions to finance new deficits 77 Limits on amount or value of benefit cuts before contribution increases could be considered 77 Allow increased employee contributions to cut deficits if employee contributions currently less than employer contributions 77 Third party dispute resolution required where plan sponsors can’t agree on benefit cuts via negotiation. Lack of Written Safety Policy Kills Due Diligence Defence After a worker was electrocuted while troubleshooting a machine, an employer was charged with an OHS violation of failing to provide him adequate safety instructions. The employer claimed due diligence, arguing that it took reasonable safety precautions but the worker didn’t use a spotter as required by his training. But the court disagreed. The worker’s training was unclear, it found, because it let workers decide for themselves whether to use a spotter when troubleshooting a machine. Rather than rely on workers’ discretion, the company should have developed a written policy specifically telling them how to perform troubleshooting safely [Ontario (Ministry of Labour) v. Linamar Holdings Inc., [2012] O.J. No. 2159, May 7, 2012]. Crane Operator Fired for Real Offences, Not as Safety Reprisal A crane operator refused to lift a box because it didn’t list its load capacity rating. The supervisor insisted that the load was safe to lift and since he couldn’t persuade the operator to do it, lifted it himself. The operator reported the incident to the MOL. The next day, he got into another argument with his supervisor and abruptly walked out of a meeting. The day after that, the supervisor wrote him up for improper use of a spreader bar and was later fired. No safety reprisal, said the arbitrator. The operator had a serious disciplinary record, was dishonest, insubordinate, careless and devoid of remorse. So he deserved to be fired [National Steel Car Ltd. v. United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, Local 7135, [2012] CanLII 25292 (ON LA), April 30, 2012]. Pushing Foreman from Platform Is Just Cause for Termination A journeyman electrician was fired for pushing his foreman from a metal platform with stairs. He claimed self-defence but the Labour Relations Board didn’t buy it. The electrician, who also happened to have been one of the crew’s sub-foremen, violated the company’s workplace violence policy and did it in a dangerous location. He didn’t apologize and there was no indication he’d ever be able to work with the foreman again. So the Board upheld dismissal even though it was the electrician’s first offence [Canadian Union of Skilled Workers v. Hydro One Inc., [2012] CanLII 23317 (ON LRB), May 3, 2012]. OK to Fire Injured Worker Who Unreasonably Refuses Modified Work A patrol officer for a housing complex injured his knee after his chair collapsed. After offering him several kinds of modified work, which he refused, the employer fired him. He filed a disability discrimination complaint, claiming his employer hadn’t accommodated him. The Human Rights Tribunal ruled that the employer had tried to accommodate the officer. But he rejected each modified job without saying why it wasn’t suitable or providing medical information why he couldn’t return to work [Boyce v. Toronto Community Housing Corp., [2012] HRTO 853 (CanLII), April 27, 2012]. LAWS & ANNOUNCEMENTS Pensions Human Rights May 25: A busy legislative year in Manitoba is about to get busier with the announcement of a government plan to revise the Human Rights Code. Highlights: May 17: Highlights of the newly proposed pension reform bill, Bill 41: 77 Right of members to inspect plan documents 77 Allow DB plans to offer phased retirement to older employees 77 Clarification of members’ rights on termination, employers’ right to cut or suspend contributions and wind-up rules. Human Rights May 30: PEI made a technical change to the definition of disability in the human rights law. Substantively, what constitutes a disability hasn’t changed; but now the term is “disability” rather than “physical or intellectual disability.” August 2012 © Bongarde • www.hrinsider.com MANITOBA PRINCE EDWARD ISL. LAWS & ANNOUNCEMENTS 77 77 77 77 Ban gender identity discrimination Ban discrimination on the basis of social disadvantage and lack of education New procedures for mediating discrimination complaints Allow small panels to adjudicate cases. Workplace Safety Apr. 27: Manitoba became the second province (after Ontario) to establish a Chief Prevention Officer position to oversee and coordinate government workplace safety and workers’ comp. Responsibilities: 77 Review provincial workplace safety and health services 77 Oversee joint injury- and illness-prevention strategy 77 Ensure effectiveness of public awareness and prevention activities. HR W Compliance Insider 9 HIRING TEMPORARY FOREIGN WORKERS CONTINUED FROM FRONT PHASE 1: DECIDING TO SEEK AN LMO An LMO is necessary to work in Canada only if the foreign worker: 1. 2. Needs a work permit; and Isn’t otherwise exempt from LMO requirements. Work Permit Needed: Foreign nationals need a work permit to work in Canada unless they’re covered by an exemption (under Section 186 of the Immigration Regulations). Key exemptions: 77 77 77 77 Business visitors; Official diplomats and foreign representatives; Full-time students with study permits; Students in a health field receiving professional training from a medical teaching association in Canada; 77 Performing artists and athletes here for a limited engagement. No LMO Exemption Applies: Foreign nationals who need a permit don’t need an LMO if they’re in a category exempt from LMO requirements, including: 77 Professionals, traders, investors and business people working in 77 77 77 77 Canada under international agreements like NAFTA; Some types of entrepreneurs and intra company transfers; Participants in exchange programs; Certain academics, students and co-op students; and People doing certain kinds of religious or charitable work. Categories of occupations that generally do require an LMO include highskilled and lower-skilled occupations, seasonal agricultural workers and live-in caregivers. If you think the position is subject to an LMO exemption, you can get official confirmation from a Citizenship and Immigration Canada (CIC) TFW Unit located in Moncton, Montreal, Toronto, Calgary or Vancouver. The CIC officer will ask you for information about the job offer, employment and employee and either grant official verification of the LMO exemption or deny it and tell you that you must apply for the LMO. PHASE 2: APPLYING FOR THE LMO To obtain an LMO, you must submit an official Foreign Worker Application for a Labour Market Opinion application form to the nearest Service Canada Centre: Did You Look Hard Enough for a Canadian? You must make sufficient efforts to recruit or train Canadians/permanent residents for the job as set out in HRSDC’s 2009 minimum advertising guidelines for filling TFW positions with Canadians. HRSDC criteria vary by occupation based on the occupations listed in the National Occupational Classification system for skills levels O, A, B, C and D: 77 Category O covers senior management and requires advertising through recruiters, in newspapers or online; 77 Categories A and B cover higher skilled occupations requiring a university or college degree and, in some case, a specific number of years of experience, and require advertising in Canadian job bank for at least 14 days and up to 3 months, as well as secondary advertising on websites such as workopolis or newspapers with wide circulation; and 77 Categories C and D cover low skill occupations such as the construction trades and require advertising in the Canadian job bank. Other specialized advertising requirements apply to groups like academics and live-in caregivers. No matter which occupation is involved, you’ll need records documenting your conclusion that there were no qualified Canadians available, including the advertising you used, any candidates you interviewed and why you rejected them. Are Wages and Conditions in Line with the Norm? Another factor Service Canada will consider is whether the wages and working conditions you’re offering the TFW are consistent with norms for the occupation, i.e., ones that would be acceptable to a Canadian worker and aren’t exploitative of the TFW. You can use the labour market data from workingincanada.ca to determine minimum, maximum and average salary for the particular NOC occupational code and experience level in different parts of the country. Rule: You must pay at least the 3-year average for the position. Unfortunately, Service Canada doesn’t figure employee benefits and other rewards into its TFW wage calculations. Other Factors Service Canada Considers Service Canada will evaluate other factors like whether: 77 The TFW is likely to fill a labour shortage; 77 There’s a labour dispute in progress—you can’t use TFWs to replace striking workers; 77 Hiring the TFW will result in transferring skills or knowledge to Canadians or creating or retaining employment for Canadians; and 77 An employer-employee relationship exists where the TFW agrees to work full-time for a specific wage/salary. What Happens If Service Canada Says No? Service Canada will notify you in writing of its decision, typically within 3 months. If the answer is no, you have 2 options: Accept the decision or challenge it. To get a decision reviewed, you must submit relevant new information to the Service Canada Centre listed in the refusal letter. PHASE 3: GETTING A WORK PERMIT When and if you get a positive LMO from Service Canada, you still have a couple of hurdles to clear. First, the TFW must get a permit to work in August 2012 © Bongarde • www.hrinsider.ca HR W Compliance Insider 10 HIRING TEMPORARY FOREIGN WORKERS CONTINUED FROM PAGE 9 THE ACCELERATED LMO Canada (assuming, of course, the worker isn’t in one of the categories exempt from permit requirements discussed above.) Assuming the TFW hasn’t yet entered Canada, the work permit can be obtained either at a port of entry or from outside Canada via visa post. In April 2012, Service Canada adopted a new program allowing employers to get LMOs in 10 business days. Information TFW Must Provide to Get Work Permit Can You Participate in the Accelerated LMO Program? Visa officers may request the following information from the TFW: 77 Proof of identity; 77 Valid passport or travel document guaranteeing re-entry to issuing 77 77 77 77 country; 77 For higher skilled positions, i.e., NOC categories 0, A and B; and 77 Do it outside Québec. Copy of the job offer or signed employment contract; Exception: Accelerated LMOs don’t apply to hiring in the film, entertainment and agriculture sectors. Copy of the positive LMO; and What Eligibility Requirements Apply? 2 photos of the TFW and all accompanying family members; Proof of immigration status. Fees Required to Get Work Permit The following fees apply: 77 77 77 77 Yes, if you recruit TFWs: Fee to process work permit application: $150; Fee to process temporary resident visa (TRV): $50; Total fee for both TRV and processing work permit: $150; and Fee for accompanying family members: $75 each. When TFW Must Undergo Medical Exam A TFW doesn’t need to take a medical exam for a job lasting 6 months or less. But medical exams are required if the TFW: 77 Is to be hired for an occupation designated as requiring an exam because it involves public health; 77 Is to be hired for longer than 6 months; or 77 Resided for 6 or more months in any designated countries in the year before applying for the permit. PHASE 4: ALLOWING TFW INTO CANADA AT PORT OF ENTRY Finally, to enter Canada, TFWs who secure a positive LMO and work permit (assuming they need those documents) must present the following documents to the Border Services officer at the port of entry: 77 Passport or travel document that’s valid for the period of the authorized stay (other than US citizens or residents of Greenland or St. Pierre and Miquelon); 77 Signed job offer or employment contract; 77 Work permit approval (or permit exemption confirmation) from CIC; 77 Copy of positive LMO from Service Canada (or LMO exemption confirmation from CIC); 77 Evidence of credentials, including education, professional and work experience (if applicable); and 77 Temporary resident visa, if applicable. August 2012 © Bongarde • www.hrinsider.ca To participate in accelerated LMO, employers must be able to show that they have: 77 Been issued at least 1 positive LMO in the past 2 years; 77 A clean record of compliance with LMO program requirements in the past 2 years; 77 Not been the subject of an investigation, infraction or serious complaint relating to LMO matters; and 77 No unresolved violations or contraventions under provincial employment and recruitment laws. Do the Same Criteria Apply? Yes. Notably, the advertisement and recruiting efforts required for Canadian workers under the regular LMO process also pertain to accelerated LMOs. But there’s one notable difference: Under accelerated LMO rules, employers can offer TFWs up to 15% less than the posted wage for Canadians. This provision has become a lightning rod for public criticism by labour advocates. Do Any Other Special Requirements Apply? Yes. In addition, to using the new accelerated LMO process, you must agree to participate in a post-LMO compliance review of any positive accelerated or standard LMO or LMO issued in the previous 2 years. It’s expected that on average, 18% of positive accelerated LMOs will be selected for compliance review each year. If you’re found to be not in compliance with the accelerated LMO rules, you could be barred from using it in future, have other pending LMOs refused and have the results sent to other federal/provincial departments for further investigation. Conclusion Under both normal and accelerated LMO rules, you must comply with the terms of the LMO, including wages, working conditions and location during the term of employment. Employers are also subject to random audits, particularly where they regularly employ large numbers of foreign workers. If you’re found not to be in compliance with your LMO, you won’t be able to hire any more temporary foreign workers for 2 years. HR W Compliance Insider 11 AGE DISCRIMINATION: test your HR I.Q. Is Making Poor Performing Employee Retire at 65 Age Discrimination? SITUATION Reporter Matt Turing has worked at the same newspaper for 34 years. After a great run, his work has steadily deteriorated—to the tune of 4 written performance warnings in the past 3 years. On his 65th birthday, Matt gets his pink slip. He claims age discrimination. The employer cites a provision in the collective agreement giving it discretion to terminate “an employee who has attained normal retirement age who fails to meet the performance standards expected for his/her position.” QUESTION justified termination, relying on the questionable provision to pull the trigger renders the decision discriminatory. Does Matt have a valid claim for age discrimination? A. No, because Matt was terminated for performance, not age. B. No, because 65 is the normal retirement age for his position. C. Yes, because Matt’s age clearly factored into the decision to fire him. D. Yes, because mandatory retirement is against the law. ANSWER C. Matt does have a valid age discrimination claim because he was terminated at least in part because of his age. EXPLANATION This scenario, which is based on the New Brunswick case cited below, illustrates a key principle of employment discrimination law: Where age, race, religion, gender or other protected grounds figure into the decision to terminate, the entire decision is illegal even if there are other non-discriminatory factors involved. In this case, the clause in the collective agreement giving the employer discretion to hold employees to stricter performance standards after they reach “normal retirement age” raises the age discrimination red flag. Thus, while Matt’s performance issues might otherwise have Result: Although he hasn’t won yet, Matt has established what’s called a prima facie case of discrimination. That means the court won’t dismiss his case and Matt will get the chance to prove his claim at trial. And in the real world, once a prima facie case is established, the balance of power shifts and forces the employer to either pay the employee to settle or risk a trial. WHY WRONG ANSWERS ARE WRONG A is wrong because Matt was terminated for performance and age. And once age enters the equation, the entire decision is tainted. B is wrong because thanks to the elimination of mandatory retirement, there is no such thing as “a normal retirement age” for a position. D is wrong because it’s the right conclusion for the wrong reason. Yes, mandatory retirement is now illegal; but the ban isn’t absolute. Employers can still rely on defences to justify what would otherwise be a discriminatory mandatory retirement policy. The most common defence is to show that mandatory retirement at 65 or other pre-designated age is a bona fide occupational requirement (BFOR), e.g., by proving that employees physically can’t do a particular job once they reach the designated age. But the rules are very strict and justifying mandatory retirement as a BFOR is very hard to do in the real world. SHOW YOUR LAWYER Malik v. New Brunswick Human Rights Commission, [2012] N.B.J. No. 167, May 9, 2012 August 2012 © Bongarde • www.hrinsider.ca HR W Compliance Insider 12 DRUGS & ALCOHOL winners & losers Can You Fire Employees for Smoking Pot at Work? Sure, drug testing is complicated. But if you catch an employee in the act of smoking marijuana at work, you clearly have just cause to terminate, especially if the employee getting high does a safety-sensitive job. Right? Unfortunately, it’s not so simple. The fly in the ointment is the ban on disability discrimination. While smoking pot isn’t a disability, addiction to pot is. Result: If the pot smoking employee is an addict, he’s considered disabled and thus entitled to accommodations under human rights laws. Here are 2 cases in which arbitrators had to decide if an employee caught smoking pot at work had an addiction protected by disability discrimination laws. TERMINATION IS OK TERMINATION NOT OK FACTS FACTS A city employee is arrested on the job for possessing marijuana. During the city’s investigation, he admits to smoking marijuana during work hours. “[I] smoked joints at work just like others smoked cigarettes,” he tells the investigator. He also acknowledges driving a city truck for drug purchases. But he also claims he’s addicted to marijuana and sues the city for disability discrimination after he’s fired. An aluminum smelting employee is caught smoking marijuana at work. Aluminum smelting is a safety-sensitive operation involving the use of heavy equipment and molten metals. So the employer fires the employee under its zero tolerance policy for drug use on the job. The union grieves, claiming that the employee is an addict. DECISION The BC arbitrator refuses to uphold the termination. DECISION An Ontario arbitrator rules that the firing was justified. EXPLANATION The employee didn’t prove that he had a drug addiction, the arbitrator concluded. So he wasn’t entitled to accommodations. And purchasing drugs while working, regularly using them on the job and operating the employer’s equipment while apparently under the influence of marijuana—thus endangering both co-workers and the general public—were just cause for termination. City of Ottawa v. Ottawa-Carleton Public Employees Union, Local 503 (Lavoie Grievance), [2011] O.L.A.A. No. 582, Dec. 7, 2011 EXPLANATION The arbitrator acknowledged that smoking marijuana during smelting operations was worthy of a “strong disciplinary response,” especially since this was a repeat offence. But unlike the employee in Lavoie, the smelter in this case was addicted to marijuana. The employer was aware of his addiction but didn’t attempt to accommodate his disability before firing him. So the arbitrator ruled that termination was too severe and knocked the penalty down to a long suspension. Rio Tinto Alcan Primary Metal (Kitimat/Kemano Operations) v. National Automobile, Aerospace Transportation and General Workers of Canada (CAW-Canada), Local 2301 (Grant Grievance), [2008] B.C.C.A.A.A. No. 170, Dec. 16, 2008 HR Compliance Insider Preferred Subscriber Offer Yes, please enter my new one-year subscription to HR Compliance Insider at the special rate of just $397 plus shipping and handling. The Insider gives me plain language, “how-to” help to comply with HR laws and avoid liability. If not completely satisfied, I may cancel and receive a full refund on the unused balance of my subscription. 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