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Ontario Court of Appeal

Non-competition and non solicitation clauses in employment contracts

Jurisdiction: - British Columbia - Ontario

In Lyons v. Multari (2000), 3 C.C.E.L. (2d) 34, the Ontario Court of Appeal, citing the Supreme Court of Canada's decision in Elsley v. J.G. Collins Insurance Agencies Ltd., [1978] 2 S.C.R. 916, stated that, in an employment relationship context, only in "exceptional" cases will the courts enforce a non-competition clause if a non-solicitation clause would adequately protect the employer's interests .  read more »

"Should An Employer Appeal An Employment Insurance Ruling"

Jurisdiction: - Ontario

"Should An Employer Appeal An Employment Insurance Ruling?" (March 31 2006 is the title of an article written by lawyer Stuart Rudner at Miller Thomson in Toronto.

In the article, Mr. Stuart states that the answer is "probably no'" to the following question:

If an employer dismisses an employee for just cause, and an employment insurance officer, board, or umpire decides that she was not guilty of misconduct and is therefore entitled to benefits, should the employer appeal that decision?

In addressing this issue, Mr. Rudner cites two Ontario decisions:

  1. Korenberg v. Global Wood Concepts Ltd. 2005 CanLII 46076 (ON S.C.) , and 
  2. Minott v. O'Shanter, 1999 CanLII 3686 (ON C.A.)

Employer liable for lost disability benefits when terminated employee became disabled during reasonable notice period

Jurisdiction: - Ontario

In Alcatel Canada Inc. v. Egan, 2006 CanLII 108 (ON C.A.), an employer was found liable for the lost disability benefits when an employee it terminated became disabled during reasonable notice period. You can read a summary of the case here.

"Severance Pay and Valuing Disabled Employees Past Contributions and Investments: O.N.A. v. Mount Sinai Hospital"

Jurisdiction: - Ontario
Sector: - Health Care

Elizabeth J. McIntyre and Archana Mathew from Toronto law firm Cavaluzzo Hayes Shilton McIntyre & Cornish LLP have prepared a paper entitled, "Severance Pay and Valuing Disabled Employees Past Contributions and Investments: O.N.A. v. Mount Sinai Hospital" (June 2005).

The paper summarizes the Ontario Court of Appeal's decision in Ontario Nurses' Association v. Mount Sinai Hospital, 2005 CanLII 14437 (ON C.A.), in which the court  ruled that the denial of severance pay under the Ontario Employment Standards Act to disabled employees/employees whose employment contract was frustrated was discriminatory and unconstitutional. 

The promise of continued employment not sufficient consideration for changes to existing employment contract

Jurisdiction: - Ontario

A recent Ontario case  - Hobbs v. TDI Canada Ltd., 2004 CanLII 44783 (ON C.A.) - has confirmed that the promise of continued employment is not sufficient consideration for changes to an existing employment contract.

In order to make changes to an existing employment contract employers should provide either:

  1. tangible consideration; or
  2. reasonable notice of the change (equivalent to the notice required to lawfully terminate the employment contract).

Refraining from terminating a person's employment may be sufficient consideration for new terms in an employment contract, but only if the employer is able to prove that it did not carry through on a clear prior intention to terminate the person's employment in exchange for the person's acceptance of the new terms.