The standard limitation period for claims in Ontario is two years. If an individual or business is considering a lawsuit they are always well advised to consult a Lawyer as early as possible to determine when the two year limitation period begins and when it ends.
The recent Ontario Court of Appeal case, Ali v. O-Two Medical Technologies Inc. 2013 ONCA 733, shows the difficulty of determining a limitation period in certain employment disputes. In this case the Plaintiff worked on commission to sell medical devices in Iraq for his employer. Shortly after one such significant sale in December 2006 the employer notified the Plaintiff that it was unilaterally changing his commission structure. The Plaintiff continued working for his employer but informed it that he expected the original and higher commission to be paid. After the sale was completed the employer paid the Plaintiff the reduced commission in November 2007. Unhappy with the lower commission, the Plaintiff eventually started a court action in September 2009, well over two years from the date that he was first informed of the new commission structure.
The employer argued that by the time the Plaintiff commenced his court action over two years had passed since he was informed of the changes to his contract and it was too late to bring the dispute to court. However, in December 2013 the Ontario Court of Appeal ruled that this was not the case and decided that the two year limitation period did not start until the Plaintiff actually received the reduced commission in November 2007. The Plaintiff's court action was allowed to proceed.
Whenever an employer tries to modify an existing contract by reducing an employee’s compensation it creates the possibility of a legal action. The case of Ali v. O-Two Medical Technologies Inc. is an interesting example of when these contractual changes also increase the limitation period in which an employee can commence a claim in court.
Based in Kanata, the law firm of Allan Snelling LLP provides employment law advice to both employees and employers throughout Ottawa and the surrounding area.
Frequently Asked Questions
My employer has again asked that I work in a foreign country. I am concerned that this posting is unsafe. Last time I worked abroad multiple bombings took place and several governments closed their embassies. I also had my personal belongings stolen while I was in what was supposed to be a secure area. Do I have to go work in this country? If I do is my employer required to provide travel insurance in case something goes wrong?
The first thing to look at is your employment contract. Most employment contracts contain both written terms, and unwritten terms that are implied into the contract by law. The written portion of an employment contract usually mentions the benefits and insurance coverage that an employer is required to provide and it may also mention work locations and travel.
Unless travel insurance is covered in the original contract, or has since been agreed to by the employer, an employer generally cannot be forced to provide travel insurance. Also, most travel insurance policies will not cover all of the risks you’ve outlined. However, the failure to mention travel or relocation in a contract may prevent an employer from requiring that an employee work in a foreign country. Whether an employer can make such a request, without it being specifically mentioned in the contract, depends primarily on the nature of the work and if foreign travel to that country was expected or foreseeable when the employee was hired or promoted into their current position.
If an employee has a legitimate fear for their safety they may be able to argue that a travel request from their employer is not consistent with their contract. The context of the employment and the country involved are important considerations. For example it could be implied into many contracts that travel to the United States is acceptable, whereas travel to parts of Afghanistan is not. It is always best to review your contract, check your facts, and consult with a Lawyer before making any demands of your employer.
I recently changed roles at work. My new title is “Accounts Manager” and I am responsible for all the company’s accounts payable and receivable. I also help other staff price our products and develop new accounts. I am very happy about my new role but my job used to be “9 to 5” and now I have to work late and on weekends. I asked my boss about overtime but was informed that managers and supervisors do not receive overtime pay. Is this true?
For most employees in Ontario overtime hours start after 44 hours of work in a week. For every hour worked in excess of 44 hours an employee is supposed to receive time and a half.
Under the Employment Standards Act there are exceptions to the general rule including that managers and supervisors do not receive any overtime compensation. For this “manager exception” to apply, an employee generally needs to be performing work that involves the supervision of other employees in a leadership role as opposed working in general administrative duties. Also, the exempt employee must be working in the manager role the majority of the time while at work - not just every now and then. The fact that someone’s job title includes the word “manager” or “supervisor” does not determine their entitlement to overtime pay. Rather, it depends on what the actual duties of the employee are.
Although many job titles, such Accounts Manager, include the word “manager” this does not necessarily mean you don’t get overtime pay. If your job does not involve supervising other employees this is a good indication that you may be entitled to overtime compensation. For more information you can seek legal counsel or examine the Ministry of Labour’s website at http://www.labour.gov.on.ca/.
I have a chronic medical condition which unfortunately has become worse over time. For the last two years I have been receiving benefits through my employer’s disability insurance plan. Recently, the insurer wrote to advise me that the terms of the policy have changed and that they now require additional medical information - why is this happening and am I at risk of losing my benefits?
Most disability insurance policies provided by employers have different coverage for different periods of time. For the first two years of an employee’s disability benefits are generally provided on the basis that you cannot perform the essential duties of your existing occupation. The definition of disability changes after two years in most policies.
One of the first steps in your case is to obtain a copy of the policy from your employer. This policy will usually include a brief description of the criteria that an employee must meet to be entitled to disability benefits. In the vast majority of cases after two years of paying benefits policies will limit an employee’s entitlement to further benefits unless the employee is unable to work in any occupation to which they are reasonably suited.
Because of this change to the disability definition, insurance companies will generally review files and seek additional medical information if someone has been receiving benefits for two years. However, Ontario courts have recognized that whether an individual is able to perform any occupation depends not only on their particular disability, but also their basic skill set and educational background. In many cases insurers won’t cut off benefits once they have completed their review and have received additional medical information. However, if you and your insurer disagree about whether you are capable of returning to the workforce it may be time to contact a Lawyer.


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