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Employment Liability: Claims & How to Protect Your Business Patricia Forte, B.A., LLB.

AGENDA 1.Employer Risks –Termination 2.Risk Controls

Employer Risks

EMPLOYER RISKS

TERMINATION Employer right to terminate –Employment law vs. Labour law –Provincial vs. Federal –Cause vs. Without Cause Definition of “cause” “Without Cause”  notice or pay in lieu –A word about “lay off” The ART of the termination meeting

TERMINATION How Much? 1. Legislation 2. Contract 3. Common Law

TERMINATION Structuring a fair package –Employment Standards Act = the floor Working notice vs. pay in lieu of notice Benefit continuation Termination pay vs. severance pay –Employment contract –Common law notice = the walls & roof Top up “Bardal factors”

TERMINATION The Package: –Salary – lump sum or salary continuance –Benefit continuation –Continuation of perqs (bonus, RRSP, car, memberships) –Stock option plan –Outplacement counselling –Letter of reference –Legal fees for ILE –Communicating the departure –Ongoing obligations (restrictive covenants) –Bad Faith / Damages “formerly known as Wallace” –Punitive Damages –Full and Final Release (confidentiality; no disparaging remarks; indemnity)

Risk Controls

RISK CONTROL Written employment contracts Workplace Policies Training / MonitoringInsurance

LAST WORDS… Areas of employer liability are wide and vast Create the “prenup” Use best practices Call sooner

Thank You

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