Employers Can Create Win-Win Scenarios by Facilitating Re-employment for Ex-Employees

Common Law Notice 

Upon termination of employment, if an employee’s contractual entitlements are not nailed down in an up-to-date and enforceable employment contract, the employee is likely entitled to common law reasonable notice (or pay in lieu of notice) of termination. Even if an employee’s entitlements are set out in an employment contract, it is common these days for employees, on the advice of employment law counsel, to claim that some of the contract’s termination-related provisions are not Waksdale-proof, and are therefore unenforceable. (We discuss how employers can make their contracts Waksdale-proof in this blog, and best practices for rolling out updated contracts in this blog). Under both scenarios, any path to resolution will start with an assessment of the common law notice period.  

Employers Facilitating an Ex-Employee’s Re-Employment Create a Win-Win Scenario

Courts consider several factors in determining an employee’s common law notice period (i.e. the number of weeks or months of pay to bridge the employee until their next role). The primary factors are known as the Bardal factors: 

  1. the employee’s age; 
  2. their length of service; 
  3. the character of their employment (i.e. the seniority/level of responsibility of their role); and 
  4. the likelihood of finding comparable employment (i.e. an assessment of the job market). 

A simple way to understand the common law notice period is to conduct a thoughtful and informed analysis of how long it will take the employee to re-employ in a comparable role. 

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Do Employers Have to Provide Reference Letters? The Legal Lowdown

Ah, reference letters, those elusive pieces of paper that can make or break a job seeker’s dreams. But here’s the deal: employers are not an employee’s personal fan club. They don’t have an obligation to shower employees with praise in the form of reference letters.

Before employers start feeling like kings on a throne, let’s explore the legal and strategic considerations surrounding reference letters and how they can impact an employer’s business.

No Obligation, No Problem

Let’s start with the undeniable truth: employers are under no legal obligation to hand employees a glittering reference letter, as affirmed by the Ontario Court of Appeal (2007 ONCA 573). So employers can rest easy, knowing that you’re not compelled to write letters of recommendation for every departing employee.

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Canadian Employment Law for US Employers: Part 2 – Contracts

This is Part 2 of our blog series for US employers with operations in Canada. Click here to read Part 1 if you haven’t already.

Canadian Employment Law for US Employers

No At-Will: Contracts are a Big Deal in Canada

One of the core employment law differences between the US and Canada is that there is no at-will employment in Canada. Ever. In fact, when Canadian judges read “at-will” in a contract, they typically set aside the contract altogether and substitute in typically far more generous common law terms.

In addition, if you do not have any contracts in place, the courts will read in implied terms. This is because all Canadian employment relationships are governed by a contract under our law, whether expressly in an agreement or implied based on common law.

If an employer does not roll out a contract with their employees, the judge will imply terms and conditions that in most cases are more generous than anything the employer would have provided.

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The Power of An “If You Get Another Job Clause”

termination clawback clauseIn recent months, we have seen a spike in group terminations. For HR professionals this often means a packed schedule of the worst-of-the-worst meetings. In our recent blog post, we discussed terminations with softer landings (and less chance of disputes and litigation), and bigger-picture best practices for those difficult exits. In this blog, we zero in on an aspect of severance package drafting.

In the process of structuring severance packages for (too many) employees, we’ve noted that some employers have forgotten about a handy clause that can lead to a win-win post-termination scenario for both employers and employees. However, the clause gets a bad rap because it is colloquially known as a “clawback clause” and can be misinterpreted as a sinister employer strategy.

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Canadian Employment Law for US Employers: Part 1 – Backgrounder

US Employers' Guide to Canadian Employment LawsAre you a US employer with operations in Canada? Welcome and bienvenue to this blog series written just for you. Our Canadian virtual employment law firm advises many US employers who have employees and contractors in Canada. I love this conversation. We’re neighbours who share so many similar cultural values, pop culture references and the world’s longest unsecured border.  And yet there are fundamental differences in our countries’ respective workplace laws and workplace culture. It often catches our US employers by surprise and triggers very expensive moments in the employment relationship.

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Cover Your Assets: Why Having a Witnessed Release is Your Best Defense Against Future Legal Woes

Witnessed Release is Your Best Defense Against Future Legal WoesSo you’ve finally settled a dispute with a former employee who had alleged a wrongful dismissal or discrimination. You’ve drawn up the papers to confirm the fact that the matter is settled. Now, all you need are signatures on the dotted lines. Whose signatures exactly?

Parties

When settling a dispute with a former employee, the parties involved should sign the release –  you know, those documents filled with legalese stating that that the employee/releasor releases the employer/releasee from all claims arising out of the employment relationship, termination thereof, et al. – to make the settlement legally binding. These signatories typically include the former employee and sometimes a representative from the employer, such as a human resources manager or CEO.

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