1 Barristers & Solicitors SAMFIRU TUMARKIN Toronto Head Office: 330 Bay Street Suite 820 Toronto, Ontario M5H 2S8 Mississauga Office: 2 Robert Speck Pkwy. Suite 750 Mississauga, Ontario L4Z 1H8 T: F: EMPLOYMENT LAW: UNDERSTANDING YOUR LEGAL RIGHTS Presented by: Lior Samfiru Prepared for: The National job Fair

2 Understanding Your Legal Rights Topics: 1. Employment contracts: what you need to know 2. Termination of employment: your rights 3. Questions

3 Employment Contracts: What You Need to Know Consider this: Written contracts almost always benefit the employer Contracts are drafted by lawyers You sign it, you have to live with it Will govern your employment relationship and even conduct after employment comes to an end

4 Employment Contracts: What You Need to Know Important Contractual Clauses 1. Termination: The BIG One Consider this Clause: “ If your employment is terminated without cause, the Company shall give you notice or pay as required by the Employment Standards Act of Ontario. This shall constitute your full termination entitlements ”.

Employment Contracts: What you Need to Know Termination Clauses : Employer will seek to minimize termination exposure Employment Standards Act only prescribes minimums Contract may have fixed notice period --- not always good. The longer you work, the more important it becomes Understand what you will get at termination (pay, bonus, benefits, etc.)

6 Employment Contracts: What You Need to Know 2. Restrictive Covenants Non-competition provisions: duration, location, scope Non-Solicitation Confidentiality obligations Can significantly impact ability to find other employment 3. Other Clauses to Note: Are changes to duties allowed? Are changes to pay allowed? Are other documents mentioned (get a copy!) Does contract apply when position changes?

7 Employment Contracts: What You Need to Know Negotiating Terms Negotiate before you start working. Only fight the battles that matter Don't ask and you shall not receive Agree in writing to re-negotiate once specific conditions met

8 Termination of Employment Manners of Termination Termination for cause - no notice Termination without cause - notice! Temporary lay off – notice?

Termination of Employment Termination with cause Employer can terminate employment for cause, where employee’s conduct is inconsistent with the continuation of the employment relationship. Can only happen when the employee is guilty of repeated and very serious misconduct. Employer has an obligation to take other lesser forms of discipline before resorting to termination. One incident of misconduct is almost never enough. If employer establishes cause, no requirement to pay severance. In reality, very difficult to establish cause, and employer may be liable for damages for bad faith.

10 Termination of Employment Termination Without Cause Can happen at any time, for any reason Performance is irrelevant Seniority is irrelevant No termination as a result of a discriminatory ground (for example, no termination without cause because employee was absent due to an illness)

11 Termination of Employment Termination Without Cause (contd.) Employer must provide reasonable notice or pay in lieu thereof Starting point: employment contract No contract: probably good news for employee Must determine what reasonable notice is for each employee

12 Termination of Employment Termination Without Cause (contd.) Notice is based on employee's age, length of employment, nature of position Was employee induced to leave secure employment? Notice goes up. Employer may decide to give working notice If no working notice, must be put in the same financial position as if given working notice. Payment can be made as lump sum or as salary continuation. Package must include everything: salary, bonus, commissions, benefits, stock options, vacation pay. Important: employee has duty to mitigate

13 Termination of Employment Termination Without Cause (contd.) Employer imposed time limits: take your time! Always take package home and consider speaking to a lawyer Employer will want a release Consider if employer must pay lump sum (if payroll > $2.5 million)

14 Termination of Employment Constructive Dismissal Significant, unilateral, change to important contractual term Gives rise to termination without cause Employment contract is important Resign...or else...

WRONGFUL DISMISSAL Steps in Wrongful Dismissal Claim: 1. Demand Letter: resolves vast majority of disputes 2. Statement of Claim served by employee 3. Employer has 30 days to serve Statement of Defence 4. Mandatory Mediation (Toronto only): resolves close to 95% of employment lawsuits

WRONGFUL DISMISSAL Continued: 5. Examinations for Discovery (only for lawsuits exceeding $50,000) 6. Pre-Trial Conference 7. Trial Timelines: To mediation: 3 months To trial: 8 to 12 months

17 For further information, please contact: Lior Samfiru Tel: (416) Fax: (416) Offices in Toronto and Mississauga Barristers & Solicitors SAMFIRU TUMARKIN Toronto Head Office: 330 Bay Street Suite 820 Toronto, Ontario M5H 2S8 Mississauga Office: 2 Robert Speck Pkwy. Suite 750 Mississauga, Ontario L4Z 1H8 Presented by: Lior Samfiru Prepared for: The National Job Fair Trusted. Dedicated. Experienced.