The federal and provincial governments in Canada have different powers to make laws. In employment law, the federal government only has jurisdiction over specific works and undertakings within its exclusive constitutional jurisdiction, such as shipping, railways and banks. However, most employment relationships do not fall within this jurisdiction and are governed by the law of the province in which they are located.
Therefore, the provinces generally have jurisdiction over employment matters. In contrast, the federal government has jurisdiction only in exceptional cases involving specific works and undertakings. Hence, termination rules and employment safety concerns in the province and Toronto are no exception in this scenario. Still, if any legitimate issue arises out of negligence, the case is under surveillance under a Toronto employment lawyer.
Minimum Standards Of Employment
Every province in Canada has implemented laws establishing minimum standards for essential employment terms and conditions. This includes regulations on minimum wage, vacation and holiday pay, working hours, leave of absence, notice periods for termination, and, in specific regions, severance payments. Both employers and employees cannot waive these minimum standards through contracts.
The Employment Standards Act, 2000 (the “ESA”) establishes the minimum employment standards in Toronto. Here are some of the minimum standards as of now:
Minimum wage: Minimum wages start at $15.50 for employees aged 18 or older and $14.60 for student employees under 18. Both rates adjust annually on October 1 based on changes in the CPI.
Work hours: The normal workday is 8 hours, and the workweek is 48 hours. However, overtime pay is 1.5 times the regular wage for hours over 44 per week.
Vacation and leave: After every 12 months of employment, employees receive two weeks of vacation and 4% of wages if employed for less than 5 years or 6% of salary if used for 5 years or more as vacation pay. However, the pregnancy leave consists of 17 weeks of job-protected leave without pay.
Public Holiday: There will be nine public holidays: New Year’s Day, Good Friday, Victoria Day, Canada Day, Labour Day, Thanksgiving Day, Christmas Day, Boxing Day, and Family Day.
Despite having a legal structure for leaves and employment rules, companies fail to provide decent employment facilities because they ignore termination policies. Unfair behavior or unjustified termination may cause employees financial and emotional distress and must be avoided. However, a Toronto employment lawyer has a legitimate interest in such unfair dismissal and ensures companies and employers adhere to the Employment Standard Act in that province.
Termination Of Employment In Toronto
The Canada Labour Code specifies the conditions under which an employer can initiate termination of employment, with distinct requirements for individual versus group terminations.
Individual Termination
As an employer, if you decide to end an employee’s employment, you must:
- Notify the employee in writing at least two weeks ahead of time.
- For employees with a minimum of three years of service, the notice period should equal one week for each year worked, with a maximum limit of eight weeks.
- Alternatively, employers can offer employees their normal wages instead of providing a notice period. Combining a notice period with wages instead of notice is perfectly okay.
Also, a notice of termination of employment or payment instead of a notice is not required if the employee:
- An individual who has not worked for three consecutive months of continuous employment:
- Who has ended their employment, is terminated for valid reasons, is temporarily laid off without being terminated,
- And has agreed to an employment contract with a set end date aligned with the completion of work on that date.
In group terminations involving more than 50 individuals, employees may work seasonally or have irregular work agreements that allow them to decide whether to accept work when requested. In such cases, the termination must be notified in writing to the Head of Compliance and Enforcement at the Labour Program at least 16 weeks before the termination of employment takes effect. However, if the group is unsatisfied with the legal compliance, it can seek assistance from a Toronto employment lawyer and receive its share of benefits.
Termination For Cause
There is no “at-will” employment in Canada. An employer is typically only allowed to dismiss an employee without notice when there is “cause” under the law. Numerous types and degrees of conduct or misconduct can serve as a cause for terminating an employee’s employment. However, this cause exists on a spectrum, with serious employee misconduct at the “high” end and minor but repeated unsatisfactory conduct at the “low” end.
In almost all cases of less severe misconduct, a single incident typically does not justify termination. However, serious misconduct can occur as a singular incident; for instance, employees may be discovered stealing or misappropriating substantial assets or resources from their employer. When there is strong evidence of theft or misappropriation, there may be cause to terminate the employee’s employment. However, such occurrences are rare, and a Toronto employment lawyer handles the cases.
Termination Without Cause
If no valid reason exists for dismissal, employers must give employees a notice period for termination or provide payment instead of notice. In Toronto, Canada, an employee’s rights upon termination without cause primarily stem from three possible entitlements sources:
- Minimum standards set by the ESA;
- The entitlement to reasonable notice of termination under common law;
- Termination clauses are outlined in a valid, written employment contract.
In all cases where an individual or a group of employees does not receive satisfaction or fair treatment, they must seek a solution with the help of a Toronto employment lawyer. A prompt decision will reward them with satisfactory results within the right period.