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Group Terminations

BC court issues precedent decision on penalties for breach of Canada Labour Code group termination provisions

Jurisdiction: - Canada/Federal
Sector: - Transportation

In Regina v. Servisair Inc. BCPC 142, the BC Provincial Court addressed the appropriate penalties to impose for breach of certain Canada Labour Code ("CLC") group termination provisions.

The decision was issued on May 10, 2011. It is the first reported decision in Canada to consider the penalty issue.

Group Termination Provisions

The group termination provisions in the CLC are triggered when 50 or more employees are terminated in a single industrial establishment either simultaneously or within a 4-week period. Among other things, these provisions require the employer to:  read more »

Ontario court refuses to certify class action based on claims of constructive dismissal and breach of ESA

Jurisdiction: - Ontario
Sector: - Insurance

In Kafka v. Allstate Insurance Company of Canada, 2011 ONSC 2305 - which was issued on April 12, 2011 - the Ontario Superior Court of Justice refused to certify a propsed class action that was based on allegations of:

  • constructive dismissal; and
  • a claim for termination pay and/or severance under the Ontario Employment Standards Act.

The claim pertained to a general announcement letter that Allstate issued on July 24, 2007, to approximately 350 to 450 active agents (employees) in Ontario, advising that effective September 1, 2009 a revised product distribution model and agent compensation system would be implemented.  The new model was then phased in from September 1, 2007 through 2009. 

The court summarized the issue on the certification motion (application), and its decision, as follows:  read more »

Change in circumstances was transfer of business, not termination; no severance owing under Canada Labour Code

Jurisdiction: - Canada/Federal

Group 4 Falck (Canada) Ltd. and Abdulla (Re) (October 13, 2009, Canada, T. Hodges)

"Corporate Transactions and the Employment Standards Act: Don't Get Bitten!"

Jurisdiction: - British Columbia

"Corporate Transactions and the Employment Standards Act: Don't Get Bitten!" is the title of a paper written by Michelle Alman of the Legal Services Branch, BC Ministry of Attorney General, and Elani Kassaris, Blakes, Cassels & Graydon LLP.

The authors wrote the paper for the Employment Law Conference - 2008, which was held in April 2008 and is organized by Continuing Legal Education of BC.   

Appeal Court finds outsourcing did not trigger severance provisions in Ontario's Employment Standards Act

Jurisdiction: - Ontario

In Abbott v. Bombardier Inc., 2007 ONCA 233, the Ontario Court of Appeal ruled that an outsourcing situation did not trigger the severance pay provisions in the Ontario Employment Standards Act, 2000.

In doing so, the court upheld the decision of the motion judge (2005 CanLII 63771 (ON S.C.)). The motion judge had determined that:  read more »

"Labour and Employment Issues in a Hot Mergers & Acquisitions Market"

Jurisdiction: - British Columbia

Carman J. Overholt, Q.C.,  a lawyer at Fraser Milner Casgrain in Vancouver, has written a paper entitled, "Labour and Employment issues in a Hot Mergers & Acquisitions Market".  The paper covers the significant labour and employment law issues that arise in mergers and aquisitions. the specific topics covered are:  read more »

Report to Task Force on Part III of the Canada Labour Code regarding termination of employment provisions

Jurisdiction: - Canada/Federal

As part of the Task Force on Part III of the Canada Labour Code, Geoffrey England wrote a "Report to the Task Force on Part III of the Canada Labour Code regarding the termination of employment provisions of the Canada Labour Code" (March 16, 2006).

The Report examines the following provisions in Part 111 of the Canada Labour Code that deal with termination of employment:

  • the unjust discharge provisions;
  • the individual notice of termination/pay in lieu provisions;
  • the individual severance pay provisions; and
  • the group termination provisions.

HRSDC issues chart setting out employers' "Notice of CollectiveTermination" obligations across Canada

HRSDC has prepared a very useful chart setting out an employer's Notice of Collective Termination requirements under employment standards legislation across Canada. The chart can be found here.

The chart is dated October 20, 2005.