What you need to know about Employment Contracts | Employment Law Show TV – S8 E06

Episode Summary

WHAT YOU NEED TO KNOW ABOUT EMPLOYMENT CONTRACTS, short-service severance pay, accommodations at work, and more on Season 8 Episode 06 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 about employment law in Alberta, Ontario and British Columbia, on the only employment law show on both TV and radio in Canada.

Episode Notes

Rent as part of compensation

I was a superintendent for many years and as part of my compensation, I paid rent at a very reduced rate. Recently, I was let go and told I’d receive severance but had to vacate my apartment. What are my rights in this situation?

• Severance package elements: Severance packages must take into consideration all elements of compensation. This can include bonuses, car allowances, rent, etc. Employees who have lost their employment must seek legal advice as severance packages rarely offer adequate packages.
  

Severance under the ESA

I was laid off due to restructuring and was only offered one week’s pay despite expecting a baby in the coming months. I was told I was only entitled to minimum severance under the ESA.

• Severance entitlements: Employers cannot terminate employees due to pregnancy or taking parental leave. This is considered a human rights violation and can face additional legal consequences. Employees who have been terminated regardless of pregnancy or parental leave are still owed severance based on their years of service, position and age.
  • Learn more about severance pay
    • Severance in Alberta
    • Severance packages in Ontario
    • Severance entitlements in B.C

Short-service severance entitlements

I’m a construction health and safety coordinator. I was employed for about 7 months before I was let go. I checked your severance pay calculator and was surprised to see I would be owed 3-4 months’ pay. How is this possible?

• Short-service employee rights: Employment law disproportionately relegates larger amounts of severance pay to short-service employees in comparison to long-service employees. This is due to the difficulties in finding a new position for short-service employees as a result of the abrupt end of employment.

Accommodations after disability leave

I’ve been on long-term disability for quite some time but might finally be able to go back to work. I’m 64 years old. Does my employer have to accommodate me and ensure I’m brought back to the same position?

• Duty to accommodate: Employees must be allowed to return to their position after taking medical or disability leave. Employees must return to the same position and rate of pay, regardless of age. Employers must accommodate an employee’s medical condition up until the point of undue hardship. Mandatory retirement is prohibited across Canada.

What you need to know about Employment Contracts

• An employee’s best interest: It is in an employee’s best interest not to have a formal written employment contract. It is far more beneficial for employees for an employment agreement to be a “handshake” deal or verbal agreement. Employment laws exist to protect employees regardless of a contract.
  
• Clauses in an employment contract: Clauses in an employment contract can limit an employee’s rights and entitlements. This is particularly important regarding severance pay. Employment contracts can also severely limit termination pay, implement temporary layoffs, and give employers the right to impose major changes.
• Forced to sign a new employment contract: For an employment contract to be enforceable, it would have to be signed before an individual began employment. Employees do not have to accept signing a new contract and should be wary if presented with a new agreement. Employees cannot be disciplined or terminated for refusing to sign a new contract.
• Unenforceable or legally outdated: Parts of an employment contract may become unenforceable. Contracts must be updated regularly to abide by employment laws. Employees should speak to an employment lawyer if they are unsure of their rights after signing a contract.
•  Seek out legal advice from an employment lawyer: Employees are within their rights to seek out an employment lawyer and should do so before signing a contract or legal documentation.

Severance entitlements when a business is sold

I’ve been working for the same manufacturer for over 25 years. The owner has decided to sell the business, and we’ve been told by the new owners that only half of the workers will remain. I’m almost 50 years old. Am I owed anything here?

• Business is sold: Employers can sell their business or shut down operations. Regardless of a business sale or closure, employees are still owed severance pay if they are not employed by new ownership. Severance despite the sale of a business will still be based on the age of the employee, position and years of service.
  

Extended probation as a disciplinary measure

After a recent performance review and some mistakes I’ve made over the past few months, my manager has informed me my probation period will be extended another 3 months. Is this legal?

• Probationary periods extended: Probation periods are not automatic and must be consented to by an employee at the start of employment. Probation periods that are extended are typically not enforceable. Employees who are terminated after the standard period of probation are owed severance pay despite disciplinary measures.

Rapid Fire Employment Laws True/False

• Detailed information about your medical condition: Employers are not within their rights to ask for personal and private medical information. Employers can ask employees for possible accommodations as well as a prognosis.
• Investigate and resolve harassment complaints: Employers must take harassment complaints at the workplace seriously. Employers must investigate and resolve complaints; a failure to do so could be a human rights violation.
• Provide training and support: Employers must offer adequate training and support for an employee who has exhibited difficulties in productivity and performance. Employees who still fail to meet standards after support has been offered can then be disciplined.
• Years of service should continue: Generally employees’ years of service are continued despite the sale of a business to a new owner.
• Valid and legitimate reason for termination: Employers do not have to offer a legitimate reason for termination as long as adequate severance pay is given.

NEXT EPISODE: Employment Law Show S8 E07 – Guide to Workplace Accommodations

PREVIOUS EPISODE: Employment Law Show S8 E05 – Fast Facts about Temporary Layoffs