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 own a small events and promotions business. Every so often I get emails from students asking if they could volunteer to learn about the business. I’ve never hired a student because they’re inexperienced but I’m considering hiring one as an intern this summer. I don’t have the budget for a full time employee but I would be willing to pay them a modest stipend. I’ve heard both paid and unpaid internships are illegal in Ontario. Is this true?
In Ontario, the rules around internships are strict and in recent years some employers have been required to change their internship programs as a result. If someone is receiving on the job training from a business they are considered to be an employee of the business under Ontario law. As an employee they are entitled to a minimum wage under the Employment Standards Act so paying them a stipend that does not meet the minimum wage is against the law.
There are two exceptions to this general rule which recognize the educational value of internships. The first is internship programs approved by a college or university which are permitted.
The second exception is internships that meet criteria set by the Ministry of Labour. These requirements include that the intern is receiving valuable training, is not taking someone else’s job, and has not been promised a job after their training. The most important feature is the educational component: the primary purpose of internships is to teach valuable skills, not to provide cheap labour to businesses.
The safest way to ensure compliance with the law is to have an internship approved as part of a college or university program. Alternatively, you should design the internship ahead of time to focus it around training and skills development.
Last month local newspapers reported the case of a McDonald’s employee in Kanata who was dismissed after receiving poor performance reviews. The employee received more than $100,000.00 in court. Why?
The short answer is that the judge in this case found that although the employee’s performance was not perfect the employer did not have “just cause” to terminate her employment contract. If a business chooses to dismiss an employee the employer has to first decide if they have just cause to end the contract or not. Just cause exists when an employee has committed a serious breach of contract such as theft or continually missing work without reason. If the employer does not have just cause then in most cases they have to provide compensation which can equal up to a month of salary for every year of the employee’s service.
Many employers have staff who they believe are poor performers. Performance reviews are often done to encourage better performance but may also be an attempt to build a case for a just cause dismissal. After several poor performance reviews an employer may choose to dismiss an employee for just cause. However, a decision to terminate an employee for just cause can be challenged in court where employers often find it difficult to prove that the alleged breach of contract was serious enough to warrant a just cause dismissal. Poor performance reviews may show that an employee was less than perfect but this alone is usually not enough to disentitle them to some compensation when they are dismissed. Because compensation is typically based on the number of years the employee has worked, the amount owing to dismissed employee can be significant which is what occurred in the case of the former McDonald’s employee.