New Year, New Structure? Navigating Mass Terminations While Hiring

As we start a new year, it’s one of the most common times for an employer to review its structure, payroll, and overall organizational needs. While it’s no secret that many companies are doing mass terminations right now, a delicate trend that we are also seeing is mass terminations while simultaneously hiring new employees. This situation is not only challenging from a legal perspective but also from an employee morale standpoint. This blog post delves into Ontario employment law considerations surrounding terminating while also hiring.

Navigating Mass Terminations While Hiring

Understanding Mass Terminations under Ontario Employment Law

Ontario’s Employment Standards Act, 2000 (“ESA”) provides the minimum legal framework for mass terminations. According to the ESA, a mass termination occurs when an employer terminates 50 or more employees at a single establishment within a four-week period. Employers are required to provide written notice to the Ministry of Labour, Training and Skills Development and to each affected employee.

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It’s All in the Timing: The Best and Worst Times to Terminate Employees

The English magician Tony Corinda once said: “Good timing is invisible. Bad timing sticks out a mile”. As employment lawyers, we talk a lot about the “why”, “what” and definitely the “how much” of terminating an employee, but the “when” is a sometimes overlooked aspect. Some termination timing issues are a question of best practice or common courtesy, while others can attract significant legal liability and can be costly for employers. An employee who is being terminated may not recognize an employer’s considerate timing, but they will certainly recognize inconsiderate timing, and this will make everything go a lot less smoothly. 

It’s All in the Timing: The Best and Worst Times to Terminate Employees

When should you not terminate an employee? 

Discrimination 

It is contrary to the Ontario Human Rights Code (the “Code”) to terminate or otherwise discriminate against an employee because of a protected ground. The protected grounds under the Code are citizenship, race, place of origin, ethnic origin, colour, ancestry, disability, age, creed, sex/pregnancy, family status, marital status, sexual orientation, gender identity, gender expression, and record of offences. 

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Learning Lessons from OpenAI’s Pitfalls: Preparing for the Potential Ripple Effect of Terminations

Earlier today we learned that Sam Altman, CEO of OpenAI the company behind ChatGPT, was returning to his post as CEO, bringing a captivating story to a close (well at least for now).

In case you missed it, the company dismissed Altman on Friday. The company provided few details on its decision to terminate Altman beyond citing a lack of candour on his part when communicating with its Board.

Learning from OpenAI’s Pitfalls

Over the weekend we learned that following a failed attempt at reinstatement, the former CEO had agreed to join the company’s financial backer, Microsoft. Altman was joined at Microsoft by other executives and management who quickly exited the company following his termination. While Microsoft welcomed the employees, it also publicly left the door open for Altman to return to his former company. 

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Approaching, Understanding and Implementing Legal Settlements

At a time when our civil justice system is plagued by extreme delay, I am grateful to practice law in an area that is well known for its focus on creative and practical problem-solving and settling, as opposed to litigating disputes. There are certainly some labour and employment disputes which simply must be litigated, but the majority of disputes will ultimately be settled. 

Legal Settlements: Mastering Disputes

 

There are many reasons why settlement is often an attractive option (the delay and cost of litigation, the peace of mind a settlement can bring, and avoiding the disruption and harm that litigation can cause to a business or its reputation …just to name a few) but in this blog we will provide some tips for considering, understanding and implementing legal settlements.

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Practical Tips and Tricks for Navigating the Arbitration Process 

This is the third entry in our blog that focuses on the topic of labour law. In case you missed it, you can find the first entry here and the second entry here. In this blog, our focus is to share Practical Tips for Arbitration Navigation.

I’ve Just received a Notice of Arbitration: Is it time to Panic?

The short answer to whether you should panic is: no. It’s important to understand, especially if you’re just beginning your labour journey, that arbitration shouldn’t be feared. However, it is important to carefully consider and understand the process and potential outcomes of proceeding to arbitration.

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Don’t Lose Your Enforceable Termination Clause to the Substratum Doctrine

If you’re an employer or HR representative well-acquainted with the realm of employment law blogs, you’ve undoubtedly encountered a myriad of cautionary tales about the perils of contracting errors.  The blogs about this topic are countless – and for good reason! The significance of getting contracts right cannot be overstated, as a single mistake could potentially lead to substantial liabilities for your organization. An omitted phrase or a misused word within a termination clause could be the deciding factor between an 8-week statutory notice obligation and a hefty 24-month damages award.

The significance of getting contracts right

However, let’s assume that you’ve taken every precaution. You’ve carefully reviewed your contracts, consulted legal experts, and you’re confident that your termination clauses are impeccably drafted. Is there still a risk that a court would refuse to enforce that termination clause?  The answer, perhaps unsurprisingly, is yes.  Even with meticulous drafting, there’s a legal principle that could potentially invalidate your termination clause – the Substratum Doctrine.

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