1. Willson Lewis LLP S ATISFIED C LIENTS A RE O UR G REATEST S TRENGTH! Offering experienced counsel practising in all aspects of civil and commercial litigation including employment law, construction, family, equine law, wrongful dismissal, tax disputes, estate and property disputes, and collections 1183 King Street West, Suite 200, Toronto, Ontario M6K 3C5 Tel: 416 534-9504 Fax: 416 534-9503 www.willsonlewis.comwww.willsonlewis.com PRESERVING YOUR WEALTH IN UNCERTAIN TIMES

2. Willson Lewis LLP Biographies CATHERINE E. WILLSON, B.A., LL.B., PARTNER A longstanding member of the Ontario Bar Association, Catherine E. Willson is a founding partner of Willson Lewis LLP, and has established a successful practice in employment law, civil litigation, equine, collections, construction, and family law. She was an executive member of the Canadian Bar Association (Ontario) – Civil Litigation Section. She is also a member of the Advocates Society, the Association of Trial Lawyers of America, and the Toronto Construction Association. Catherine is both the Chairman of the Risk Management Committee and an Honourary Governor of the Royal Agricultural Winter Fair. Catherine is the legal expert for the Canadian Federation of Independent Business (Member Services) and is a regular speaker at legal and business conferences, an instructor at the University of Guelph, and writes on legal issues for several national publications. CRAIG A. LEWIS, B.A., LL.B., PARTNER Has been practicing employment law since being called to the Bar. He received his Bachelor of Laws degree from Queen’s University and was admitted to the Law Society of Upper Canada in 1993. A member of the Ontario Bar Association, Advocates Society, Canadian Association of Black Lawyers and the Metropolitan Toronto Lawyers Association. Craig has been a speaker at Ontario Bar Association seminars concerning advocacy matters and has litigated at all levels of Court in the Province. In his employment practice, Craig has prepared employment contracts and independent contractor agreements. He has provided advice on hiring, terminations packages and wrongful dismissal claims. He has assisted clients in drafting employment policy manuals. Craig has extensive experience in responding to human rights complaints.

3. Willson Lewis LLP Biographies MARLENE KAZMAN B.Sc., LL.B. - ASSOCIATE Marlene was called to the Ontario Bar in 1993, having received her LL.B. from the University of Western Ontario and completing her articles at one of the oldest law firms in Canada. Marlene’s practice includes civil, matrimonial and construction lien law. Marlene has trial experience at all levels of Court in the Province of Ontario, and she is a member of the Ontario Bar Association and the Women’s Law Association of Ontario. Marlene is a frequent contributing writer of legal information articles for the National Credit News. KRISTA BULMER, J.D. – ASSOCIATE Krista is an associate with Willson Lewis LLP and was called to the Bar in 2006. Krista began her practice with a Bay Street boutique litigation firm. Her practice includes business and aviation law and she has assisted employers with developing workplace policies and employment contracts and has acted on behalf of employees in wrongful dismissal claims. Krista is a guest columnist for Wings Magazine and has presented to the aviation and equine communities. Krista has appeared before Ontario courts and tribunals. AIMEE COLYER, B.A., LL.B. – ASSOCIATE Aimee was called to the Ontario Bar in 2007. After completing her articles with Willson Lewis LLP, Aimee practised as an associate with two large Bay Street firms. In 2009, she returned to the firm to practice family law and civil litigation. Aimee is a member of the Ontario Bar Association.

4. dispute resolution court actions, applications, injunctive relief commercial disputes personal disputes mediation and arbitration CIVIL LITIGATION EMPLOYMENT LAW employment contracts and consulting agreements wrongful dismissal conflicts in the workplace termination packages human rights E xperienced counsel practising in:

5. construction projects (general contract/project management/design build) preparation of construction contracts tender advice and resolution of disputes negotiation and litigation of construction disputes including lien actions and breach of trust issues CONSTRUCTION LAW FAMILY LAW divorce, separation, custody, support, property issues separation agreements cohabitation and marriage contracts settlement negotiation and mediation E xperienced counsel practising in:

6. dispute resolution, litigation purchase and sale agreements, boarding agreements and leasing agreements co-ownership agreements and syndications taxation EQUINE LAW E xperienced counsel practising in:

7. EMPLOYMENT RELATED STATUTES EMPLOYER LIABILITY The Canada Labour Code

8. HIRING - JOB OFFERS \ Get it in writing – employment contracts \ Watch the verbal job offer with different written terms later  D o take time to review any contract \ Do make changes if necessary  Do consider obtaining legal advice \ Timing is everything – when did you sign?

9. EMPLOYMENT CONTRACTS C ONSIDER:  Indefinite term or specific project or task  Compensation including bonuses  Describing duties and specifying ability to change  Describing the probationary nature of the position and ability to dismiss without notice  Providing for Termination Ontario Employment Standards Act, 2000 and related provincial statutes Common law (except Quebec)

10. EMPLOYMENT CONTRACTS CONSIDER: Inserting a non-competition clause –temporal, geographical, task specific restrictions Inserting a non-solicitation clause –customers, employees Inserting a confidential information clause Ensure that adequate consideration is provided for the contractual relationship

11. Employee Considerations Relocating for the job – compensation and termination Leaving long term employment for new job – termination provision Bringing contacts or unique information – watch restrictions in confidential information

12. Employee Considerations cont’d. Long time in industry – watch for non- competes and solicitation provs. Bonus structure or targeted compensation (sales, etc.) – are details/targets clearly set out?

13. EMPLOYEE vs. INDEPENDENT CONTRACTOR Employee –Income tax, CPP, EI – deductions and remittances –T4’s –Vacation pay, overtime, holiday pay –Termination pay Independent contractor –No obligation on principal to pay income tax, CPP, EI – just GST, HST –Contractor must remit taxes –Little or no notice of termination –No EI –Contractor can deduct his or her business expenses against income –Relationship built on contract

14. TESTS – INDEPENDENT CONTRACTOR  Control Test  the degree of direction and control over a worker  Ownership of Tools  Chance of Profit  Risk of Loss  Organization Test  is an individual’s work an integral part of business operations of the company?

15. COMPANY DO’S:  Require a written contract for services executed by the contractor.  Include a termination provision in the contract with notice of no less than an employee’s entitlement under the Employment Standards Act – do not make reference to the Act in the contract.  Make the contract for a definite term or task.  The contract should indicate that the person is an independent contractor and not an employee.  The contract should state that the contractor is responsible for paying all Government remittances to the appropriate agencies. It is a good idea to obtain an indemnity from the contractor to pay remittances required by Government agencies in the future.

16. COMPANY DO’S:  Clearly define the scope of authority provided to the contractor – for example, the contractor may not enter into contracts on behalf of the company.  The contract should indicate that the contractor is free to provide services to others.  The contract should contain a confidential information clause.  Ensure that adequate consideration is provided for the contractual relationship.  Require invoices for services from the contractor.

17. COMPANY DO’S:  Clearly sever a prior employment relationship before entering into a contractual relationship.  Consider the application of relevant taxes – GST, HST, etc.  Require the contractor to obtain a G.S.T. number and to charge or remit G.S.T. to the Government.  Where transportation services are provided, specify that the contractor is responsible for the vehicle and all of its expenses.  Permit the contractor to hire employees or subcontractors.

18. COMPANY DON’TS:  Include a non-solicitation/anti-competition clause in the contract  Refer to the contractor as a commissioned sales person or speak of commission sales or salaries in the contract.  Provide T4 slips.  Exert control over the contractor’s hours of work, vacation time, or subject the contractor to company supervision or performance evaluations.  Allow the contractor to use company stationary or business cards.

19. COMPANY DON’TS:  Supply a permanent workstation or office space or encourage the contractor to use company equipment or company staff as assistants.  Restrict the number of clients that the contractor can serve.  Prevent the contractor from soliciting his/her own clients or set quotas for the contractor.  Require the contractor to comply with company policies and discipline procedures.  Provide medical or disability benefits or vacation pay.

20. EMPLOYEE MANAGEMENT DO’S DO:  Have regular performance reviews  Create a paper trail  Show the level of performance required  Communicate your expectations  Give clear, prompt and consistent instruction  Give written instruction  Give warning memo  Provide training

21. DUTY TO ACCOMODATE DO:  Listen to the Employee  Work with the Employee  Make business needs known  Ask for medical information from Employee’s physicians  Tolerate absenteeism that is disability related  Accept a modified work schedule that is reasonable  Be sensitive to Employee concerns  Keep medical information confidential – Need to Know Only

22. DUTY TO ACCOMODATE DON’T:  Harass the employee for medical information  Prefer employer’s opinion over medical opinion  Send the employee to a company doctor, unless exceptional circumstances  Treat the employee as if she/he is malingering  Discipline for disability related absence  Intimidate or bully the employee  Refuse to deal with the employee’s lawyer

23. RELEVANT LEGISLATION RE: WORKPLACE CONDUCT Occupational Health and Safety Act, Bill 168 Currently, employers who contravene the Act are guilty of an offence and face fines pursuant to section 66. Bill 168 amends section 1 (1) to include the following definitions: "workplace harassment" means engaging in a course of vexatious comment or conduct against a worker in a workplace that is known or ought reasonably to be known to be unwelcome; "workplace violence" means, (a) the exercise of physical force by a person against a worker, in a workplace, that causes or could cause physical injury to the worker, (b) an attempt to exercise physical force against a worker, in a workplace, that could cause physical injury to the worker, (c) a statement or behaviour that it is reasonable for a worker to interpret as a threat to exercise physical force against the worker, in a workplace, that could cause physical injury to the worker. The Bill will require employers with more than 5 employees to develop a program to implement a workplace violence and harassment policy. The program must include measures for workers to report incidents of workplace harassment and set out how the employer will deal with incidents and complaints of workplace harassment. The Bill comes into force on June 15, 2010.

24. Occupational Health and Safety Act, Bill 168 Bill 168 outlines many requirements for Ontario employers including: Specific assessments to measure the risk of workplace violence Measures to control the risks identified in these assessments including procedures for reporting violence, getting immediate assistance when violence is likely to occur, and guidelines for conducting investigations and handling complaints Written and posted policies and procedures addressing these risks Employee training in these policies and procedures Reasonable steps to prevent domestic violence in the workplace Disclosure of information about employees with a history of violent behaviour Continued conduct of assessments to ensure the policies protect employees Penalties for failed compliance include personal fines up to $25,000 or imprisonment for a term of not more than twelve months or both. Corporations may be fined up to $500,000. An employee has the right to refuse to work if the employee believes that he/she is in danger of becoming a victim of workplace violence.

25. DISMISSAL What is Constructive Dismissal?  Demotion  Unilateral reduction in salary  A hostile work environment (problem managers)  Geographic transfer  Change in commission structure or method of remuneration

26. DISMISSAL Just Cause v. Without Cause Just Cause:  No notice or pay in lieu required  Requires serious misconduct (i.e. theft) by employee, or gross incompetence or insubordination  Warnings must be issued  A reasonable opportunity to explain, or improve, must be given Without Cause:  Notice or pay in lieu required pursuant to Employment Standards Act, or Canada Labour Code; and common law

28. The Employment Standards Act, 2000 Employer notice period 57.57. The notice of termination under section 54 shall be given, (a)at least one week before the termination, if the employee’s period of employment is less than one year; (b)at least two weeks before the termination, if the employee’s period of employment is one year or more and fewer than three years; (c) at least three weeks before the termination, if the employee’s period of employment is three years or more and fewer than four years; (d) at least four weeks before the termination, if the employee’s period of employment is four years or more and fewer than five years;

29. The Employment Standards Act, 2000 Employer notice period (Continued) (e) at least five weeks before the termination, if the employee’s period of employment is five years or more and fewer than six years; (f) at least six weeks before the termination, if the employee’s period of employment is six years or more and fewer than seven years; (g) at least seven weeks before the termination, if the employee’s period of employment is seven years or more and fewer than eight years; or (h) at least eight weeks before the termination, if the employee’s period of employment is eight years or more. 2000, c. 41, s. 57.

30. The Employment Standards Act, 2000 Pay instead of notice 61. (1)61. (1) An employer may terminate the employment of an employee without notice or with less notice than is required under section 57 or 58 if the employer, (a) pays to the employee termination pay in a lump sum equal to the amount the employee would have been entitled to receive under section 60 had notice been given in accordance with that section; and (b) continues to make whatever benefit plan contributions would be required to be made in order to maintain the benefits to which the employee would have been entitled had he or she continued to be employed during the period of notice that he or she would otherwise have been entitled to receive.

31. The Employment Standards Act, 2000 Entitlement to severance pay 64. (1)64. (1) An employer who severs an employment relationship with an employee shall pay severance pay to the employee if the employee was employed by the employer for five years or more and, (a) the severance occurred because of a permanent discontinuance of all or part of the employer’s business at an establishment and the employee is one of 50 or more employees who have their employment relationship severed within a six-month period as a result; or (b) the employer has a payroll of $2.5 million or more.

32. The Employment Standards Act, 2000 Calculating severance pay 65. (1)65. (1) Severance pay under this section shall be calculated by multiplying the employee’s regular wages for a regular work week by the sum of, (a) the number of years of employment the employee has completed; and (b) the number of months of employment not included in clause (a) that the employee has completed, divided by 12.

33. Canada Labour Code DIVISION X INDIVIDUAL TERMINATIONS OF EMPLOYMENT Notice or wages in lieu of notice 230. (1) Except where subsection (2) applies, an employer who terminates the employment of an employee who has completed three consecutive months of continuous employment by the employer shall, except where the termination is by way of dismissal for just cause, give the employee either (a) notice in writing, at least two weeks before a date specified in the notice, of the employer’s intention to terminate his employment on that date, or (b) two weeks wages at his regular rate of wages for his regular hours of work, in lieu of the notice.

34. Canada Labour Code DIVISION XI SEVERANCE PAY Minimum rate 235. (1) An employer who terminates the employment of an employee who has completed twelve consecutive months of continuous employment by the employer shall, except where the termination is by way of dismissal for just cause, pay to the employee the greater of (a) two days wages at the employee’s regular rate of wages for his regular hours of work in respect of each completed year of employment that is within the term of the employee’s continuous employment by the employer, and (b) five days wages at the employee’s regular rate of wages for his regular hours of work.

35. REASONABLE NOTICE  Employment Standards Act is a minimum only  Ball park/range of notice  Factors – Age, Seniority, Length of Employment, other issues  Month per year maxim – Right or Wrong  Bad faith damages  Benefits & Pension  Disability Plan Issues

36. HOW TO TERMINATE  Written Notice  Private Meeting, Little Said  Respectful  Make Notes  Securing Confidential Information and Property  Record of Employment in 5 days  Termination Pay due in 7 days or next payroll  Job Placement Assistance

37. MANDATORY RETIREMENT As of December 12, 2006, there is no mandatory retirement at age 65 in the Province of Ontario WHAT DOES THIS MEAN?

38. FALL IN LOVE BUT COVER YOUR ASSETS! FAMILY LAW

39. Common law relationships –Spousal support – 3 years or a child –Child support - always –No shared property Marriage –Governed by the Divorce Act (federal), Family Law Act (provincial), Children’s Law Reform Act (provincial), and other statutes –Very definite rules on marriage –Date of marriage crystallizes property GETTING TOGETHER

40. Cohabitation Agreement –Useful where a couple has assets, is moving into one party’s home, to arrange finances, protect businesses, clarity and understanding, etc. Marriage Contract –Cohabitation agreement can turn into this on marriage DOMESTIC CONTRACTS

41. Avoid the statutory regime imposed on marriage and divorce Parties can decide their own financial arrangements Certainty and clarity Fairness Protect third parties – children, business partners BENEFITS OF DOMESTIC CONTRACTS

42. Common law relationship –Support –Children –Property BREAKING UP

43. Separation and divorce –Support, child and spousal –Custody and access –Equalization of net family property –Matrimonial home –Divorce BREAKING UP

44. The best alternative Agreement of the parties Flexible Legal counsel Must be signed and witnessed SEPARATION AGREEMENTS

45. Money gifts by parents to the matrimonial home will be lost without some forethought Inheritance monies – can this be protected from a spouse? Family run businesses – an ex-spouse can sink it without protection – protect your business partners PROTECTING YOUR PARENTS

46. No Will – estate will be divided as per provincial statute and not according to your wishes –Court will appoint an administrator – this takes time and the administrator may be required to pay money to the Court as security to administer the estate –Cannot get at estate funds quickly to pay expenses such as funeral costs, monthly expenses –Big hassles for your loved ones at a difficult time DO YOU HAVE A WILL?

47. Marriage usually revokes a Will Executors age – how old is your executor? How relevant to your current life are the beneficiaries under the Will? Divorce requires changes to a Will HOW OLD IS YOUR WILL?

48. Prepare a list of assets and liabilities –Record financial information –Record real property and ownership Decide who will be your executor –Consider age, ability, number, location Decide who will be your beneficiaries –Specific gifts, general gifts, annuity MAKING A WILL

49. the distribution of certain assets on death have tax consequences of which you should be aware there are special rules that must be obeyed when drafting a will in order to ensure that the will is valid after your death and the people you want to benefit from your estate will benefit in the manner you deem appropriate GET LEGAL ASSISTANCE

50. Mirror wills Common disaster clauses Clause to protect income of an estate from beneficiary’s spouse Annuities or trust funds Charities COMMON PROVISIONS

51. Willson Lewis LLP S ATISFIED C LIENTS A RE O UR G REATEST S TRENGTH! Offering experienced counsel practising in all aspects of civil and commercial litigation including employment law, construction, family, equine law, wrongful dismissal, tax disputes, estate and property disputes, and collections 1183 King Street West, Suite 200, Toronto, Ontario M6K 3C5 Tel: 416 534-9504 Fax: 416 534-9503 www.willsonlewis.comwww.willsonlewis.com PRESERVING YOUR WEALTH IN UNCERTAIN TIMES