Chapter 12 - Employment

Question 1

What is employment?

Answer 1

Employment involves one person doing work for another

Question 2

Master-servant relationship

Answer 2

An employee is said to be in a master–servant relationship, acting under the direction
of the master

Question 3

Independent contractors

Answer 3

Contractor agrees to do a particular job

Employees work for their employer; independent contractors work for themselves

Question 4

Control test for employment

Answer 4

• Assess the degree of control exercised by the person paying for the service
• Control is greater over an employee than an independent contractor

Question 5

Organization Test for employment

Answer 5

is the person an integral part of employer’s organization?

• i.e. A baker is integral to a bakery.

Question 6

Risk Test for employment

Answer 6

examines whether the worker bears any financial risk of loss or stands to
profit is work is completed efficiently

Question 7

Obligations of Employers

Answer 7

• Payment of wages or salary
• Safe working conditions

Question 8

Obligations of Employees

Answer 8

• Competent
• Honesty and loyalty
• Punctuality
• Act in Employer’s best interest
• Fiduciary obligations in some cases

Question 9

Restrictive covenants

Answer 9

Commitment not to work in a certain industry in a set area for a set time period

• Must be reasonable
• Must not be contrary to public policy

Question 10

Termination

Answer 10

Employment can be terminated by:

1. Either party giving reasonable notice
2. By paying in lieu of notice: The employer giving the compensation that should have been earned in that notice period
3. Immediately without cause

An employee may be dismissed with notice for any reason unless it violates human rights
legislation

Question 11

Reasonable notice

Answer 11

This is required for without cause termination, divided into statutory and common law notice

Question 12

Statutory notice

Answer 12

• Legislation sets minimum standard for notice

Question 13

Common Law notice

Answer 13

In setting reasonable notice courts consider the Bardal Factors:
- Length of service
- Type of job
- Age of employee
- Qualifications
- Availability for similar employment
- Bad-faith conduct

Question 14

Pay in-lieu of notice

Answer 14

Notice period
1 week - More than 90 days but less than 2 years
2 weeks - 2 years but less than 4 years
4 weeks - More than 4 years but less than 6 years
5 weeks - More than 6 years but less than 8 years
6 weeks - More than 8 years but less than 10 years
8 weeks - 10 years or more

Question 15

Just cause dismissal

Answer 15

Dismissal without notice must be based on employee wrongdoing or a failure to perform the job including:

• Absenteeism and tardiness
• Disobedience and insubordination (Use of progressive discipline)
• Incompetence (Let employees know they are not meeting standards)
• Harassing others
• Drunkenness, addictions issues
• Immoral conduct

Must be consistent/series of events

Question 16

Human Rights Legislation

Answer 16

Illness may cause frustration in the contract, but Human rights and workers’ compensation legislation may require the employee to be
accommodated

Question 17

Constructive Dismissal

Answer 17

Employment contract may be breached when nature of job changes without consent or working conditions become intolerable

• Failure to address harassment or sexual harassment by management or by other employees may enable a
  victim to claim constructive dismissal
• The law requires that employees take reasonable steps to mitigate damage

Question 18

Remedies for wrongful dismissal

Answer 18

• Damages awarded based on what the employee would have received had proper notice been given
• Dealing with employees in good faith has benefits
• Damages for defamation or intentional infliction of mental stress are possible
• Reinstatement is possible but rare

Question 19

Wrongful leaving

Answer 19

Employees must give employer reasonable notice before departing, may be set by contract

Following a serious breach of the employment contract, an employee may leave without notice

Question 20

Vicarious Liability

Answer 20

This is found for torts committed by an employee in the course of employment

• Operators of motor vehicles of employers may cause vicarious liability to employer
• Employer has right to turn to employee for compensation when found vicariously liable

Question 21

Human Rights Act

Answer 21

Employees have a right to:

1. Work in a respectful, inclusive environment, free of discrimination.
2. Be accommodated for their needs based on protected grounds to the point of undue hardship
3. Make a complaint to the Human Rights Commission if they believe they have experienced discrimination.

Question 22

Workers Compensation Board

Answer 22

Legislation establishes compulsory insurance programs providing coverage for workplace injuries

Question 23

No-fault insurance

Answer 23

Its goal is to ensure that money and benefits are paid to the injured parties, regardless of who is at fault

Question 24

When are employees covered for insurance

Answer 24

Eligible:
- Those who are unable to work because of illness, disability, pregnancy, or adoption or those caring for critically ill or injured children or adult family members

Not Eligible: Workers who voluntarily leave their employment, are involved in a strike or lockout

Question 25

Collective Bargaining

Answer 25

Workers join together to negotiate wages and working conditions

Question 26

Lockout

Answer 26

Action by employer to prevent employees from working

Question 27

Strike

Answer 27

Withdrawal of services by employees