Employment Liability: Claims & How to Protect Your Business

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

3. AGENDA • Employer Risks • Termination • Risk Controls

4. Employer Risks

5. EMPLOYER RISKS

6. 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

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

8. 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”

9. 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)

10. Risk Controls

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

13. Thank You