Employment Law Show – Season 10 Episode 2

Episode Summary

Laws employers break every day, rights when a company is sold, reductions in pay, and more on Season 10 Episode 2 of the Employment Law Show with employment lawyer Lior Samfiru, Partner at Samfiru Tumarkin LLP.

Watch above to discover your workplace rights and learn everything you need to know about employment law in Alberta, Ontario, and British Columbia on Canada’s only employment law show on TV and radio.

Episode Notes

The company was sold to a new owner

My company might be sold to a new owner, and it seems they don’t want employees past a certain age. I was employed there for 5 years, left briefly and came back for another 5 years. What severance would I be owed potentially?

• Rights when a business is sold: Employees cannot be let go due to their age; it is not a legitimate factor for termination. This would be a human rights violation, and employers could face legal consequences. A gap in employment, in many cases, is disregarded when calculating years of service for severance entitlements.
  • Learn more about severance pay
    • Severance in Alberta
    • Severance packages in Ontario
    • Severance entitlements in B.C

Employer asking you to sign a new contract

I’ve worked for this company for 5 years. I was recently offered a new contract to sign with a termination clause. It would limit my severance and allow them to let me go with just 2 weeks’ notice.

• Employment contract terms: It is not in an employee’s best interest to sign a new employment contract without seeking legal advice. Employment contracts often seek to limit an employee’s rights and entitlements.

Changes to payment structure

My sister receives additional overtime compensation, which accounts for nearly 40% of her annual pay. Her employer is now going to reduce that to what would be 5% instead. Is this a constructive dismissal?

• Major change made to payment structure: Employers cannot make major changes to an employee’s position, such as a dramatic shift in compensation structure. Employees can refuse an imposed change and treat it as constructive dismissal.

Your rights at work: Laws employers break every day

• Misclassified as an ‘independent contractor’: Employers often misclassify employees as independent contractors. This leads to a vital loss of rights and entitlements for individuals, such as the right to severance pay upon termination. 
  
• Failing to resolve harassment complaints: Employers are obligated to investigate and resolve complaints regarding harassment and bullying. A failure to do so can lead to constructive dismissal.
• Refusing to accommodate medical needs: As long as the necessary accommodations are supported by a doctor, employers must do their best up until the point of undue hardship. Refusing to do so can be considered a human rights violation.
• Paying inadequate severance: Employers often offer inadequate severance pay upon termination of employment; this is a wrongful dismissal.

Let go while on maternity leave

I’m currently on maternity leave. I just received notice from my employer that my job will be terminated after 8 years. They claim that, as they are suffering financial difficulties, they only owe me the minimum severance pay. What are my next steps?

• Factors that influence severance pay: Employees cannot be penalized or terminated for taking maternity leave. Employees who have been let go due to taking a protected leave could receive enhanced severance pay. Employment law does not make a distinction if an employer is doing well financially; this is not a factor that influences severance pay.

Automatic probation periods

A month into a new job, a manager mentioned I should be careful with making mistakes as I’m still on probation. I looked carefully at my employment contract, and there is nothing in my contract that states I’m on a probation period. What does it mean?

• Probation periods: Employees must consent to a probation period at the start of a new position. Probation periods are not automatic and are not enforceable past the first 3 months of employment. 
  

Employment Rights

• Asked about medical diagnosis: Employers are permitted to ask an employee about their prognosis as well as necessary accommodations; they are not entitled to know private medical information.
• Ignoring a non-compete clause: Employees should not ignore a non-compete clause in their employment contract, even though they are largely non-enforceable.
• Eliminating an annual bonus: Employers cannot revoke a bonus that is considered a regular component of compensation.
• Formal written contracts: A written employment contract is not required and in many cases is preferable for employees.

PREVIOUS EPISODE: Employment Law Show S10 E1