Tag: notice period

When working notice just doesn’t work

by Jacqueline Gant For employers shutting down operations, providing working notice is often the best way to reduce severance amounts owed. Except when it’s not. In McLeod v. 1274458 Ontario Inc., an Ontario court confirmed that working notice is appropriate only for employees capable of working during the notice period. Facts The employer sold furniture […]

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Probationary clauses: Devil is in the details

by J. Alexandra MacCarthy In Canada, the legal effect of a probationary clause in an employment contract can be unclear depending upon the facts of the particular case. The Supreme Court of British Columbia recently addressed probationary clauses in employment contracts in Ly v. British Columbia (Interior Health Authority), 2017 BCSC 42. The plaintiff (PY) […]

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Quebec employers can’t waive notice period provided by resigning employee without providing notice

by Mohamed Badreddine Most employers in Quebec know that under Quebec’s Act Respecting Labour Standards (ALS) and the Civil Code of Québec (CCQ), an employer who wishes to terminate an indefinite contract of employment without serious reason must provide notice or pay in lieu of notice. Employees who wish to resign must also give their […]

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Will the abolishment of mandatory retirement result in longer notice periods?

By Ralph N. Nero and Nicole R. Singh You’re about to terminate an employee’s employment without cause. He’s been with you for 30 years, earns $100,000, has a middle management position, and is 69 years old. He could retire with a full pension. Surely you don’t have to provide him with a severance package? Absolutely, […]

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Love Lost: Canadian Court Refuses to Defer Buyback of Terminated Employee’s Shares

By Maria Giagilitsis Ontario’s highest court recently ruled that an employer’s right to buy back a senior executive’s shares was triggered on his termination date — not the end of the reasonable notice period. Paul R. Love had argued for the later date. His shares had substantially increased in value during the notice period. Love […]

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Employee Stock Options: Get Them Right

By Christopher Ferguson and Stephen Acker In 2010, Jen-Hsun Huang’s salary was $1. No, he’s not a fresh-faced intern. Rather, Huang is the CEO of Nvidia Inc., the graphics and mobile chipmaker with Intel-sized ambitions. In that context, $1 seems like a meager reward. You would imagine that out of the firm’s $844 million in […]

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Foreign Employee Working at Canadian Affiliate Entitled to Large Severance

By Bruce Grist and Derek Knoechel The transfer of employees from foreign-based companies to Canadian-based affiliates is an increasingly common feature of the Canadian labor market. Many employers are familiar with the often complicated process of obtaining the necessary work permits for such employees at the beginning of the transfer. However, ending the relationship between […]

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Termination Pay Considerations for Commissioned Employees in Canada

by Katie Clayton and Jennifer Shepherd Figuring out an employee’s entitlements upon termination can be tricky in Canada. It can be an even trickier exercise for commissioned employees. For example, are employers required to pay employees commissions for deals that close after they are terminated? Unless the employment contract explicitly states otherwise, the answer is […]

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Supreme Court Reverses Largest Wrongful Dismissal Punitive Damages Award in Canadian History

By Kate McNeill, Kelly McDermott, and Donovan Plomp McCarthy Tetrault On Friday, June 27, 2008, the Supreme Court of Canada (SCC) released its decision in Honda Canada Inc. v. Keays, reversing the largest award of punitive damages in a wrongful dismissal action in Canadian history. The decision is very favorable for employers. Background Kevin Keays […]

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