EMPLOYERS’ •Issue 59 January 2015 Each year, the lawyers at Rubin Thomlinson LLP set out to find the significant, the substantial and the “wild and wacky”, and each year Canadian employers and employees do not disappoint! We do not undertake to provide you with an exhaustive review of the cases of the past year, but just a sampling. Our hope is that, after reading, you will have a sense of what is hot (and what is not) and how to approach your human resources decision making with confidence in the year ahead. Top 10 Employment Law Cases of 2014 1. Dennis v. Ontario Lottery and Gaming Corporation, 2014 ONSC 3882 • Theft from social fund is not after-acquired cause once settlement documents have been signed After terminating Dennis’ employment without cause, OLGC learned that she had taken $1,000 from the staff social fund. OLGC halted severance payments to Dennis accordingly, asserting that her conduct constituted after-acquired cause for termination. The Court determined that: (i) Dennis intended to return (and, indeed, had returned) the funds; (ii) OLGC had made improper findings in its internal investigation; and (iii) termination for just cause was a disproportionate remedy. Therefore, OLGC was ordered to pay the remaining severance payments, plus interest and legal costs. RT Takeaway: When asserting just cause for termination of employment, employers must (i) appreciate the context in which the employee’s conduct occurred and (ii) ensure that the termination is a proportional remedy. 2. Canada v. Johnstone, 2014 FCA 110 • Federal Court of Appeal comments on family status accommodation Johnston alleged that her employer, the Canadian Border Services Agency (“CBSA”), had discriminated against her by refusing to allow her to accommodate her childcare needs, in violation of the Canadian Human Rights Act. Finding in favour of Johnstone, the Tribunal, the Federal Court, and the Federal Court of Appeal agreed that Johnstone had been discriminated against on the basis of family status. Specifically, the Federal Court concluded that family status under human rights legislation includes certain types of childcare obligations. e: [email protected] @rubinthomlinson t: 416.847.1814 f: 416.847.1815 The Employment Law Roundup Teleseminar January 27, 2015 & The Workplace Investigation Roundup Teleseminar January 29, 2015 In 2014, courts weighed in on a varied and interesting mix of employment law and workplace investigation cases. Join us for a review of the most interesting legal developments of the year. Find out what these decisions mean for employers; what our employment lawyers recommend; and what this might mean for 2015. This year, we will be hosting two separate Roundups. On January 27, we will focus exclusively on employment law cases; and on January 29 we will discuss the most notable workplace investigation cases from 2014. Register for one, or both, via our website rubinthomlinson.com. The fee for one teleseminar is $129 plus HST (both teleseminars will cost $258 plus HST). 20 Adelaide St. East • Suite 1104 • Toronto, Ontario • M5C 2T6 rubinthomlinson.com Employers’ Alert Top 10 Employment Law Cases of 2014 The Employment Law Bootcamp Continued... RT Takeaway: This case outlines a clear test to be followed by employers looking to comply with the duty to accommodate. The test focuses on (i) determining if the request is based on a need or a personal choice; and (ii) exploring reasonable alternatives. A 2-day employment law primer for business owners and HR professionals 3. Wiens v. Davert Tools Inc., 2014 CanLII 47234 • Classic case of constructive dismissal Wiens worked at Davert Tools Inc. as the Quality Control Manager. In 2010, and again in 2011, Wiens was laid off, and her benefits were terminated during the second layoff. Upon being asked to return to work from the second layoff, Wiens declined, claiming constructive dismissal. In advancing her constructive dismissal claim, Wiens relied upon the layoffs, together with (i) an incident in which the owner of the company had yelled at her in front of other employees, and (ii) a change in reporting structure that saw her “pushed out” of the management team. The judge concluded that the aggregate effect of the lay-offs, the yelling and the change in the reporting relationship had, indeed, triggered a constructive dismissal. As a result, Wiens was entitled to reasonable notice of termination. RT Takeaway: Constructive dismissal may be triggered by a confluence of factors, even when any of those factors taken independently would not be sufficient. Changes in reporting structures, particularly when someone’s power and influence is diminished, may leave an employer exposed to liability. 4. United Steelworkers of America, Local 9548 v. Tenaris Algoma Tubes Inc., 2014 CanLII 26445 • Harassment through social media gives rise to just cause for termination of employment The grievor had made a series of derogatory comments about a co-worker on his Facebook page, which ultimately led to the termination of his employment. The grievor grieved the employer’s decision to terminate his employment. In dismissing the grievance and upholding the termination, the Arbitrator concluded that the grievor’s “vicious and humiliating” conduct constituted physical and sexual threats, contrary to Bill 168, the company’s Code of Conduct, and the company’s Workplace Harassment Policy. e: [email protected] @rubinthomlinson t: 416.847.1814 f: 416.847.1815 January 13 & 14, 2015 RT’s Employment Law Bootcamp will arm participants with the ammunition they need to successfully navigate the employment relationship. The Bootcamp will cover essential employment law issues from hiring, accommodation, and performance management to termination and posttermination. Participants will gain an understanding of key employment legislation in Ontario, and will learn how to prepare effective employment contracts and policies. This session will cover: • Hiring: Avoiding the Minefield • Employment Policies: Preparing for Battle • Employment Standards and Other Legislation: The Rules of Engagement • Performance Management/ Discipline: No Need for a Court Martial • Termination: Setting up the Firing Squad • Post-Termination: The Peace Treaty Visit rubinthomlinson.com to register. 20 Adelaide St. East • Suite 1104 • Toronto, Ontario • M5C 2T6 rubinthomlinson.com Employers’ Alert Top 10 Employment Law Cases of 2014 Continued... RT Takeaway: Social media misconduct with a negative impact on the workplace can constitute cause (even after a first offence), despite not having occurred at work. 5. Hryniak v. Mauldin, 2014 SCC 7 • Test for summary dismissal of (employment) litigation clarified In this case, the Supreme Court of Canada re-evaluated the approach to motions for summary judgment. Although Hryniak is a civil fraud case, and not an employment law case, it provides direction to judges hearing motions for summary judgment (including those brought in the context of employment law litigation). Specifically, the Supreme Court emphasizes a flexible and proactive approach to summary judgment motions. RT Takeaway: We are already seeing (and expect that we will continue to see) attempts to resolve employment disputes through this summary judgment process. 6. Kimball v. Windsor Raceway Inc., 2014 ONSC 3286 • Notice entitlements for a near retiree After 27 years of service, Kimball advised his employer that he planned to retire after his 65th birthday, at which time he began to collect a pension. However, he did not retire. Shortly thereafter, Kimball was placed on indefinite layoff, and provided with some of his statutory entitlements. He then brought a claim for wrongful dismissal, seeking 24 months’ pay in lieu of notice. The Court ruled that Kimball was entitled to receive statutory severance pay. However, with respect to the common law entitlements, the Court held that an employee’s intention to retire is a relevant factor in assessing reasonable notice, and that an employee who intends to end their working career does not have any further entitlement to receive reasonable notice payments. RT Takeaway: This is just one example of the ways that the aging workforce is impacting employment law. e: [email protected] @rubinthomlinson t: 416.847.1814 f: 416.847.1815 Workplace Investigation Training in 2015 Learn to address inappropriate workplace behaviour before it becomes a legal issue. Join us in 2015 for Basic Workplace Investigation Techniques & the Report Writing Workshop. • February 3 - 5 in Toronto • April 21 - 23 in Ottawa • June 9 - 11 in Calgary • October 6 - 8 in Toronto • December 15 - 17 in Toronto Keep an eye on our website as we will be announcing 2015 training dates for Vancouver. Visit rubinthomlinson. com for more information or to register. We are also able to bring a customized version of this program into your workplace to provide your HR team with a template on how to conduct legally defensible workplace investigations. For more information on bringing this program to your workplace, please call 20 Adelaide St. East • Suite 1104 • Toronto, Ontario • M5C 2T6 rubinthomlinson.com Employers’ Alert Top 10 Employment Law Cases of 2014 Continued... 7. Paquette c. Quadraspec, 2014 ONSC 2431 • Global payroll to be considered when calculating severance obligations pursuant to the Employment Standards Act, 2000 Paquette, a twenty-eight year employee of Quadraspec, had signed an employment agreement stating that he would be entitled to two (2) weeks’ notice per year of completed service to a maximum of six (6) months’ notice. After Quadraspec terminated Mr. Paquette’s employment, he commenced an action to challenge the enforceability of the termination provisions in the employment agreement, arguing that (i) severance pay was required if Quadraspec’s global payroll exceeded $2.5 million, and, as such, (ii) the entitlements prescribed by the employment agreement were less than his statutory minimum entitlements. The Court accepted Paquette’s arguments, finding that a company’s global payroll is to be considered when determining whether an employee is entitled to statutory severance pay. RT Takeaway: Until we hear otherwise, this case leaves employers having to take into account payroll outside of Ontario when calculating whether the $2.5 million threshold for statutory severance has been met. 8. WSIAT Decision No. 2157/09 • Workers suffering from work-related mental stress may now be entitled to workers’ compensation benefits After being subjected to twelve (12) years of ill treatment by a co-worker, the worker was diagnosed with “adjustment disorder with mixed features of anxiety and depression”. Given that her diagnosis appeared to be workrelated, the worker applied for benefits from the WSIB. However, her claim was denied because she did not have “an acute reaction to a sudden and unexpected traumatic event”, as required by subsections 13(4) and (5) of the Workplace Safety and Insurance Act, 1997 (the “Act”). The worker challenged sections 13(4) and 13(5) of the Act as being unconstitutional, arguing that those provisions unfairly discriminated against her on the basis of her type of disability. The Tribunal agreed, and granted the worker initial entitlement for mental stress. RT Takeaway: Employees may now be entitled to WSIB benefits for the effects of harassment in the workplace. e: [email protected] @rubinthomlinson t: 416.847.1814 f: 416.847.1815 Investigating Complex Cases February 25, 2015 in Toronto Have you ever been stopped in your tracks during an investigation? Or have you ever known that you have to do some form of investigation, but the traditional model doesn’t seem to suit? Then this course is for you. We look at some unusual starting points for investigations, as well as all of the twists and turns that an investigation can take, and provide you with the tools you need to navigate the forks in the road. This course will cover: • Investigations into complaints of systemic discrimination • Responding to Anonymous complaints • Distinguishing countercomplaints from other information provided by respondents • Reviews, assessments and other processes which can be undertaken when there is no “complainant” Participants will be provided with comprehensive materials explaining these concepts and tools to better support their investigation practice. Following the RT methodology of role play and problem solving, internal investigators will have the opportunity to enhance their skills allowing them undertake these investigations with confidence. Visit rubinthomlinson.com to register. 20 Adelaide St. East • Suite 1104 • Toronto, Ontario • M5C 2T6 rubinthomlinson.com Employers’ Alert Top 10 Employment Law Cases of 2014 Continued... RT Law at Work Blog 9. McIntosh v. Legal Aid Ontario, 2014 ONSC 6136 • The tort of intrusion upon seclusion strikes again Here’s what we’ve been blogging about: In 2012, the Ontario Court of Appeal created a new tort – intrusion upon seclusion – in its decision in Jones v. Tsige. In this case, McIntosh’s personal information was accessed by an employee of Legal Aid Ontario (“LAO”), Reddick, who also happened to be the current girlfriend of McIntosh’s ex-boyfriend. Reddick reviewed the file, telephoned McIntosh, and made a series of threats to disseminate the information contained in the file. McIntosh sued both LAO and Reddick, alleging a violation of her privacy rights. It appears that LAO subsequently settled with McIntosh. Reddick did not participate in the action; and, in the absence of any defence, the Court awarded McIntosh $7,500 in general damages plus $6,500 in legal fees, all of which is to be paid by Reddick. RT Takeaway: Employers should continue to be vigilant about protecting the privacy of confidential information belonging to their customers, and should ensure that their expectations are communicated to employees. 10. R. v. J.R. Contracting Property Services Ltd. and Lootawan, (unreported) • Health and safety violation leads to imprisonment for supervisor While removing shingles from a roof, a worker employed by JR Contracting Property Services (under the supervision of Lootawan) slipped and fell onto the walkway below. A Ministry of Labour investigation followed, concluding that the worker had not been (i) trained on the proper use of fall protection equipment, or (ii) provided with any fall protection equipment to use on the job site. Both the employer and the supervisor were convicted of failing to ensure the safety of the worker. The employer was fined $75,000 and the supervisor was sentenced to 45 days in jail. RT Takeaway: Employers and supervisors are jointly responsible for worker health and safety and may face significant consequences for failing to comply with the Occupational Health and Safety Act. e: [email protected] @rubinthomlinson t: 416.847.1814 f: 416.847.1815 Santa is Coming: Have You Been Naughty or Nice? On the First Day of Christmas… One of these things is (not) like the other My Lips Are Sealed: The Importance of Honouring Confidentiality Obligations Following a Settlement Nothing in Life is Free: Certain Unpaid Positions Now Protected under the OHSA When Do An Employer’s Accommodation Actions Become Harassment? Atlantic Provincial Governments’ Respectful Workplace Policies – The Must Haves Recent Ontario Case Revisits Tort of Invasion of Privacy – Intrusion Upon Seclusion 20 Adelaide St. East • Suite 1104 • Toronto, Ontario • M5C 2T6 rubinthomlinson.com
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