What age discrimination looks like in the workplace

| January 11th, 2017 | No Comments »

“We do not want to invest in someone who will retire so soon.”

“Perhaps you would benefit from working with people your own age.”

“We prefer to maintain our youthful culture.”

“We prefer to hire more mature employees.”

What do all of these statements have in common? In each one, the speaker is drawing a distinction between the recipient of the statement, and those of a different age group, which negatively affects the recipient.  In the workplace, this can amount to discrimination on the basis of age, or “ageism”.

Age discrimination in the workplace is illegal, and all employees over the age of 18 (with limited exceptions) benefit from the anti-discrimination provisions of federal and Ontario human rights legislation.

Age discrimination can occur anytime an employee is unfairly distinguished because of his or her age.  Ageism does not need to be overt, or plain and obvious, in order to constitute discrimination.  In fact, ageism is quite often subtle, and done without malice or realization that ageism is occurring.

For example, an employer may want to maintain a certain culture that is more prevalent amoung younger generations, thereby denying employment to a senior applicant in the process.  While the employer’s intent may have been innocent, the consequence is that an older job applicant has been unfairly denied employment for no reason other than his or her date of birth.

Similarly, an employer’s desire to maintain a more mature workplace may inadvertently hold younger employees to higher standards in order to obtain employment.  The employer’s intent may be sincere, but the way in which prospective employees are vetted may not be.

Here are some important things both employers and employees should remember in order to avoid age discrimination:

  • Employers cannot deny a benefit or opportunity (such as employment, promotions, raises, etc.) to an employee that is in anyway motivated by the employee’s age
  • Mandatory retirement after a certain age is illegal
  • Even though laws dealing with age discrimination only apply to employees over 18 years of age, employers are still bound by their duties of good faith and fair dealing in connection with their younger employees
  • Anti-age discrimination laws apply not only during employment, but during the application and screening process as well.

Author: Marc Kitay, Employment Lawyer

Inducement of an Employee: Risks and Damages

| January 9th, 2017 | No Comments »

Inducement: When pursuing an employee that works for another company, it is important to be mindful that this employee would be sacrificing a number of employment benefits by leaving their employer. This generally includes seniority, potential career advancements with their former employer, job security, benefits and so on. If recruiters are very persistent and aggressive towards an employee of another organization, or use promises such as career advancement, security, or higher pay, then this will be seen as inducement. The law seeks to protect individuals being induced by holding employers liable if the employee is terminated unjustly or too quickly. Thus, when recruiters focus on attracting talent from another organization, employers should be aware of the potential risks.

Risk 1: Increased damages through notice pay

This is problematic an unjust dismissal or constructive dismissal claim. In these circumstances, the employer will owe the employee pay for damages through increased notice pay as a result of the inducement. (Notice pay are damages owed to place the employee in a similar position had he/she not been terminated).

Risk 2: Damages for Misrepresentation (moving costs)

Another concern for employers should be whether the inducement was accompanied by a misrepresentation of the employment offer. The key is to be completely honest about the available position. If certain promises are made, such as advancement, but it is known that such promises are only possible with a budgetary approval, this information must be given before the candidate is hired. If a misrepresentation is made, the employer will be liable for any moving costs the employee incurred in addition to the amount owed through increased notice pay. Of course, this is only an issue if the employee is terminated undeservingly (i.e. termination without just cause) or too quickly. Nonetheless, employers should take the necessary steps to ensure their recruiters are fairly representing employment opportunities to potential candidates.

Factors used to Determine if Inducement Occurred

If the employer is able to show that the employee was not induced or if the employment lasted several years, then it is less likely that damages will be awarded. In summary, some of the factors to determine whether inducement occurred are:

  1. Whether the former job was secure
  2. Whether the employee accepted the offer while there were other better offers available
  3. Whether the employee had to move as a result of accepting the position
  4. Whether the employee was an owner of a business prior to inducement

If you are an employee and feel you have been induced and now find yourself unemployed after a short period, please contact an employment law expert to ensure you are compensated fairly. Employers are also encouraged to seek legal advice for any concerns regarding the risks mentioned above.

Important Additions in a Severance Package

| December 21st, 2016 | No Comments »

severance package calculateThe purpose of a severance package is to make a terminated employee “whole” over a reasonable period of time.  Very commonly, severance packages include only base salary, neglecting other elements of compensation – such as benefits, RRSP or pension contributions, bonuses, commissions, and so forth.  If a severance package excludes any of these elements, the employee ought to speak with an employment lawyer.

Sometimes, the missing elements of severance packages are subtle.  For example, many benefit schemes include more than just health and dental coverage – they also often include life insurance, long-term disability coverage, critical illness, a health spending account, and the like.  Each of these items has a dollar value – whether it’s the company’s cost or the replacement cost.  Where the severance package offers health and dental continuation and nothing further, the extra cost of these missing items needs to be accounted for in some other way in order to make you “whole”.

Bonuses are also a major bone of contention in severance package negotiations.  The Ontario courts have been very clear recently that bonuses which would have been earned during the severance period must be included in a severance arrangement, unless the company has communicated very clear language to the contrary through its bonus plans and/or employment contracts.  Employees ought to remember that in severance negotiations there are often two different bonus issues: 1) the bonus earned during the year of the termination; and 2) the bonus which would have been earned if not for the termination.  Both these elements are up for negotiation.

Finally, it is very common to negotiate non-monetary items into a severance package, such as a reference letter, employment transition counselling, and reeducation allowances.  Although companies generally do not have to offer these items, some companies include them anyway, if they feel it could provide value to the departing employee.

 

Author: Daniel Chodos, Employment Lawyer

Employees’ Wrongful Actions and Employers’ Liability

| December 20th, 2016 | No Comments »

wrongful actionsEmployers may be found liable for the wrongful actions of their employees under certain conditions. The wrong must be tortious – this is a wrongful action that can be brought to civil court – which includes torts such as trespassing, assault, theft, negligence and so forth. There are certain factors established by the courts in determining whether the employer is vicariously liable for the wrongful act(s) of their employee. These factors are analyzed thought the ‘Salmond’ test established by common law.

Salmond Test – Vicarious Liability

The ‘Salmond’ test seeks to establish whether the employer created an opportunity for the employee to commit the wrongful action through the duties required for the position. If the act was related to such duties, then the employer can be found liable. The test seeks to analyze the following:

  • The opportunity the employer gave the employee
  • The extent to which the wrongful act may have furthered the employer’s aims (i.e. making this action more likely to be committed by the employee)
  • The extent to which the wrongful act was related to friction, confrontation or intimacy inherent to the position/business
  • The power conferred on the employee in relation to the victim
  • The vulnerability of the victims in relation to the employee’s power

In general terms, the principle underlying the ‘Salmond’ test is whether the duties required gave an enhanced opportunity for actions of wrongdoing. This can be examined though a combination of the above factors in the ‘Salmond’ test. Employers are encouraged to seek an employment law expert for a full understanding of any situation raising concern. The above is by no means comprehensive.

An example that illustrates the relevant principles is Bazley v. Curry (SCC 1999). This case established that vicarious liability extends to enterprise risk. Simply, this can be viewed as the necessary duties employees are given to conduct business in the specific industry. This means that employers can be found liable for the risks inherent in the job itself, and not just acts that are authorized by the employer.

Bazley v Curry Example

In Bazley v. Curry, the employer was a child care facility. Employees here were caretakers of mentally disabled children. The nature of this business required caregivers to have a relationship of total intervention – bathing, preparing children for bed, and so on. Mr. Curry was the caregiver and Bazley was the child subjected to abuse by Mr. Curry. The employer here was found to be vicariously liable for the wrongdoing. In simple terms, this was because Mr. Curry was put in a position that made the abuse more likely when examining the duties of the job. The focus here is on the enterprise risk.  The nature of the business made these actions by Mr. Curry more likely to occur; the employer was therefore vicariously liable.

Final Thoughts

The courts place an increased responsibility on employers for the actions of their employees for two reasons. The employer has the means to compensate potential victims for the wrongdoing of their employees. Also, the court recognizes the employer’s ability to deter their employees from committing such wrongful acts. This may include performing criminal background tests or placing third-party supervision as deemed necessary for the position and enterprise, as this will mitigate risk and deter employee wrongdoing. It is important for employers to be diligent and take the necessary precautions to prevent wrongful actions by employees.

Establishing Whether an Employment Relationship Exists

| December 13th, 2016 | No Comments »

employment relationship agreementBoth parties have an interest in determining if there is in fact an employment relationship between the employer and individual providing service. If there is no employment relationship, then the Employment Standards Act (ESA) does not apply. For employers, this means that they are not liable for wrongful dismissal or other obligations that otherwise would apply under the ESA. Conversely, individuals providing service have an interest in establishing the existence of an employment relationship to make a wrongful dismissal claim in the appropriate situation.

How to Establish Whether There is an Employment Relationship

The relation between an individual providing service for an organization may be ambiguous at times – an example includes long-term contracted employees. The tests developed by the courts were established overtime and are used to analyze the fundamental nature of the employment relationship, and ultimately whether there can be a wrongful dismissal claim. The four tests below are not used in isolation by the courts; the courts will apply all relevant factors. As such, the question of whether there is an employment relationship can be complex and warrant the expertise of a legal expert. The tests below are not comprehensive and are meant to serve as a general guide.

The Control Test

The control test views the essence of the employment relationship being a question of control over the work performed. The most important aspects of this test include the discretion over payment, the control over the timing, type and manner of work, and disciplinary power. If the individual is subject to a high degree of control over the duties being performed, terms of payment and discipline imposed by those receiving the service, this is indicative of an employment relationship.

The Fourfold Test

In the case of professional or highly skilled individuals, the control test may not truly capture the essence of the employment relations as skilled employees tend to have more autonomy and control over their work. The fourfold test seeks to determine the owner of the business. Likewise, the test analyses the degree of control the employer has over the work, the ownership of tools, who stands to make a profit, and conversely, who is at risk of a loss. Generally, if the employer owns the tool and equipment and bears most of the risk for a loss, then this is indicative of an employment relationship.

The Organization Test

This test is usually a last resort used in conjunction with some of the factors in the control or fourfold test when no clear answer is rendered. This test seeks to establish whether the individual’s services are fundamental to the business or if the individual is dependent upon the organization as their main source of income. It is used as a broad overview in determining whether an employment relationship exists.

The Permanency Test

This test is most appropriate for contract employees and seeks to establish the overall stability of the relationship. Indicators of an employment relationship include the employer providing training, selecting the individual for employment rather than having a staffing agency make the placement, and continued supervision. In such instances, a long-term contracted individual may be seen as an employee rather than a contract worker.

5 Things That Make For a Hostile Work Environment

| December 12th, 2016 | No Comments »

Hostile Work EnvironmentA hostile work environment is created when an employer or colleague behaves in such a way that it is difficult or impossible for an employee to continue working. A hostile work environment is often considered a form of harassment.

Below are five actions that can accidentally, or on purpose, make for a hostile work environment, and how to resolve them:

  1. Verbal abuse or physical threats against an employee’s well-being. It goes without saying that yelling, swearing, or making verbal threats of physical harm towards an employee will create a hostile work environment. Violence itself is not necessary, the fear of harm may be enough.
  1. Insulting or degrading comments based on the personal characteristics set out in the Ontario Human Rights Code. Comments or actions that are unwelcome and based on personal traits like race, age, gender, religion or family status, to name a few, will create a hostile work environment.
  1. Unwelcome sexual remarks or contact, leering, unwelcome requests for dates, displays of sexually offensive pictures, or the spreading of sexual rumours. In addition to creating a hostile work environment, such behavior may also result in a claim of sexual harassment.
  1. Conduct that intimidates, humiliates or demeans an employee. Insults, name calling, or the spreading of rumours can amount to workplace bullying, and a hostile work environment.
  1. Targeting a particular employee by providing them with excessive and unjustified criticism, impossible goals and deadlines, or sabotaging the employee’s work. Such behavior is conducted in bad faith and is another form of bullying.

It is the employer’s responsibility to address and prevent conduct that has created a hostile work environment. An employee faced with a hostile work environment should report any harassing behavior to a superior. Once the employer is made aware of the allegations of harassment, there is an obligation on the employer to investigate and resolve the situation.

Employers are required to prevent hostile work environments from developing.  Under the Occupational Health and Safety Act, employers with five or more employees are required to prepare a workplace policy about workplace violence and harassment. Employers must also develop and maintain a written program to implement the policy, which must include measures and procedures as to how workers are to report workplace harassment, as well as setting out how incidents or complaints will be investigated and dealt with.

Finally, if an employee is subjected to behavior that is in violation of the Ontario Human Rights Code, the employer may be faced with a human rights claim if they allow the hostile work environment to continue or develop.  Employers should take allegations of a hostile work environments seriously, and also be pro-active in fostering a safe and healthy work environment.

Author: Whitney Manfro, Whitten & Lublin

Forgotten Employee Rights: Overtime Pay for the Salaried Employee

| December 7th, 2016 | No Comments »

employee rights to overtime payIt’s hard to understand your employee rights. Many salaried employees believe they are not entitled to overtime pay.  This is a surprisingly common myth. There are a large number of salaried professionals who receive an annual salary, who work extremely long hours and never receive a dollar in overtime pay.   Many employees may leave a lot of money on the table each year without ever realizing it.

The reality is that unless you fall into an exempt occupational category, you are entitled to overtime pay.   Most salaried employees are entitled to overtime pay.  Federal and provincial employment standards legislation mandate that employers must provide overtime pay, regardless of whether you earn commissions, a base salary or an hourly rate. The manner in which you are paid has nothing to do with your eligibility for overtime pay.  Overtime pay for salaried employees is generally calculated by converting your annual salary to an hourly rate and overtime is paid at 1 ½ times the regular hourly rate for each overtime hour worked.

Employees who exercise managerial or supervisory functions or belong to certain exempt occupational groups are not entitled to statutory overtime pay.  That said, employees who bear the title of ‘manager’ or ‘director’, but who do not exercise supervisory or managerial functions, are still entitled to overtime pay.  It is not a valid justification for an employer to rely on a job title alone to avoid its overtime obligations.

Being entitled to overtime pay is one thing, but the practical hurdle is often proving the overtime hours. Most salaried employees do not have a system of tracking their hours of work, so overtime hours are often overlooked or difficult to prove after the fact.  The reality is, that even if you are a salaried employee, your employer bears the onus of tracking your overtime hours.  Even though it is the employer’s responsibility, you should be doing the same. Maintaining a daily time sheet on your own can validate the actual number of overtime hours you work in support of your overtime entitlement.

Overtime rules vary slightly by province. In Ontario, employees are entitled to overtime pay at time and a half, for hours worked in excess of 44 hours in a week.   In some provinces, employees are entitled to daily and weekly overtime.    You should check with the employment standards office in the province where you work to determine the overtime rules that apply to you.  Some employers may have overtime policies that are more generous than employment standards.  You should also review your employer’s overtime policy, if one exists, to determine if you may have additional rights or benefits under the policy.

 

Author: Jonquille Pak, Employment Lawyer

Holiday Party & Corporate Liability

| November 29th, 2016 | No Comments »

holiday party at workA staff holiday party is a great way of celebrating the holiday season.  It can also be an effective way of showing appreciation to employees.  These events can be lots of fun, but what many employers often forget is that they can attract unwanted liability. 

The most common types of legal issues employers face as a result of staff parties are related to harassment and alcohol consumption.  The following are brief guidelines that employers should carefully consider in order to create a fun-filled holiday celebration, while avoiding legal liability.

Harassment

An employer can be held liable for harassment, including sexual harassment, even if it occurs after hours at a staff social event.  The following are simple things that employers can do to not only help reduce the risk of harassment, but also the risk of liability if harassment does occur: 

  • Develop and circulate an anti-harassment policy that clearly states that it applies to all work functions, including all social events;
  • Members of management should be reminded that they are expected to set an example for other employees during workplace functions;
  • Invitations for a holiday party should include a reminder that the anti-harassment policy extends to the event;
  • Consider inviting non-employees to the event.  The presence of customers, suppliers, or significant others can help reduce the occurrence of harassment or offensive behaviour;
  • Take steps to limit the consumption of alcohol;
  • Anti-harassment training should have fact scenarios that include work social events; and
  • Have an action plan ready in the event of an incident of harassment, and be prepared to implement it. 

Realistically, employers may not be able to fully control how guests behave at social events.  However, they can certainly avoid being held responsible for another guest’s conduct if they take proactive steps to help prevent the conduct, and if they take appropriate and swift action in response to inappropriate conduct.

Alcohol Consumption

The consumption of alcohol at a work function can lead to undesirable conduct by guests.  One of the main concerns employers should have is being held liable for injuries or damages caused by an intoxicated guest.

A social host is not typically liable for injuries/damages resulting from a guest who has consumed alcohol at the host’s residence.  However, employers are not ordinary social hosts.  The case law in Canada suggests that employers who host staff holiday party owe a duty of care to their employees which is closer to that of a commercial host.  Consequently, an employer who hosts a party has a greater duty to protect intoxicated individuals and the public than a social host. 

To help reduce the risk of liability arising from an intoxicated guest’s actions, employers should be following these simple tips:

  • Only serve a reasonable amount of alcohol to every guest.   Effective methods include the issuance of a set amount of drink tickets per guest, and limiting the period during which alcohol is served;
  • Do not provide open access to alcohol; 
  • Hire certified, licensed and insured professionals to look after the distribution of alcohol;
  • Serve food at the event;
  • Prevent “binge drinking” by discouraging/prohibiting drinking games;
  • Offer a selection of non-alcoholic beverages;
  • Hold the event off-site at a licensed and insured establishment;
  • Appoint members of management to monitor alcohol intake by guests, warn people against driving intoxicated, and to arrange taxis for intoxicated guests;
  • Provide paid transportation to and from the event for all guests; Invitations to the event should include a statement discouraging drinking and driving and excessive alcohol consumption.  Similar announcements should be made regularly throughout the event;
  • Do not conduct any business at the event; and
  • Avoid drinking with employees at other sites after the conclusion of the social event.

If an employer wishes to throw a staff party without having to worry about liability, it should refrain from cutting corners at the organizational stage.  Careful and thoughtful preparation is the key to a successful and liability-free event.

Is an Employee Obligated to Provide an Employer ‘Reasonable Notice’ of Resignation?

| November 23rd, 2016 | No Comments »

notice of resignationIt is well known that employers must give an employee ‘reasonable notice’ or pay in lieu upon termination when there is no just cause (i.e. the employee has not done anything wrong to be fired). Conversely, although rarely pursued, an employer has the right to receive ‘reasonable notice’ from an employee planning to resign. Below, the factors for determining ‘reasonable notice’ time for employees will be reviewed with reference to a relatively recent case by the Ontario Supreme Court case [Gagnon v. Jesso ONSC] (referred to as “Jesso”).

Reasonable Notice

For employees, ‘reasonable notice’ is the period of time an employee is required to give their employer before the date they wish to resign. The amount of ‘reasonable notice’ time required from an employee will vary with respect to the importance of the employee’s position and duties. The purpose of ‘reasonable notice’ is to grant the employer enough time to either replace the employee or to adjust in a way that would avoid substantial financial losses. In general, employees with managerial responsibilities are required to provide longer notice periods; however, employees in key non-managerial roles may also be require to provide comparable notice time. Jesso highlighted the relevant factors to consider, which include: the employee’s length of service and the difficulty the employer will face with replacing the employee’s skillset (i.e. the labour market conditions). If applicable, any unique circumstances that would result in the employer needing added time to adjust must also be factored into the notice time.

Jesso Example: 

To illustrate the factors considered in determining “reasonable notice”, consider the example of Jesso v. Gagnon. Gagnon is a heating and cooling company (owned by Pierre Gagnon), and Jesso was a salesperson for nearly 10 years with a mechanical engineering degree. Jesso and his sales partner were responsible for over 60% of the company’s sales, and ultimately, a significant source of Gagnon’s revenue. Jesso eventually resigned after strained relations with his employer. Further, Jesso knew that his sales partner was also planning to resign around the same time, since both were pursuing employment with the same competitor.

Initially, Jesso gave Gagnon 2 weeks of notice but the court ruled that reasonable notice in this case would be 2 months. This is not a trivial amount of notice time. Firstly, Jesso’s length of service with Gagnon did contribute to the 2-month required notice time. The most important factor, however, was his substantial skillset, which is indicated by Jesso’s sales performance. Gagnon could not quickly replace the performance gap that Jesso’s resignation would cause. This was due to Jesso’s skillset in itself, as well as the low availability of comparable employees within this industry – these factors contributed to the length of time Gagnon would need to replace or adjust to Jesso’s resignation. Lastly, there was the issue of Jesso knowing that his sales partner was also resigning near the same time. This was a special circumstance that would add to Gagnon’s difficulty in adjusting to this loss as Jesso and his sales partner contributed to over 60% of Gagnon’s sales.

It is important to understand that the above example is a simplified generalization used to apply the relevant factors for determining reasonable notice for employees. Each case will be influenced by the particulars of the employment relationship and surrounding circumstances. Jesso makes this point clear, as any unique circumstances that may create more difficult for the employer to adjust or replace the employee must be considered. Please seek the advice of an employment law professional if faced with a similar situation.

What to do about Bullying in the Workplace

| November 17th, 2016 | No Comments »

bullying in the workplaceBullying was unacceptable when you were a kid on the playground.  It is no different that you are adult in the workplace.  Whether it is your co-worker or your boss, it is not allowed.  If you experience bullying at work, you can confront the bully.  If you are not comfortable doing that (perhaps because your boss is the bully), consider contacting a human resources representative, a member of the company’s joint health and safety committee, or your boss’ boss.  It is also important to review any discrimination / harassment / bullying policies and complaint processes that applies in your workplace, as this will help guide your path.

Usually, the complaint should be handled by someone objective (not the person you complained about), and both you and the person you are complaining about will be given an opportunity to explain what happened.  Occupational health and safety legislation sets out certain basic requirements for harassment investigations.

Since bullying can often be difficult to prove, do your best to keep track of instances of bullying – keep emails where the bully’s tone was unreasonable, keep doctors notes regarding any impact the bullying has had on you, and create a journal listing the details of every time you felt bullied – details like where it happened, when it happened, who witnessed it, and what exactly what was said.  Try to describe the event in a fair and objective way.  These steps will help to ensure that your complaint is taken seriously.

If none of those private options work, consider contacting the Ministry of Labour.  If the company does not fulfill its basic obligations to investigate, an inspector from the Ministry can appoint an investigator, at the company’s expense, to ensure that your complaint is investigated and that it is done properly.

Of course, you can also seek legal advice at any time.  Depending on the nature of the bullying, the company could be liable for, among other things, constructively dismissing you, breaching your human rights, or intentionally inflicting mental distress on you.

Author: Stephen Wolpert, Whitten & Lublin