legal words
Employment Law:
25 YEARS IN REVIEW
IMPORTANT CHANGES TO THE EMPLOYMENT RELATIONSHIP
Over the past 25 years, Canadian
employment law has undergone
significant changes. These
changes have impacted all facets
of the employment relationship, including
obligations owed by employers to
employees and the strategies developed
by employers to manage their workplace
efficiently and proactively.
This article will highlight some of the
key changes that have taken place, including
changes to the duty to mitigate,
the enforcement of bonus forfeiture
provisions, the deduction of disability
benefits during the notice period and
perhaps most importantly, termination
clauses.
1. MITIGATION OBLIGATIONS
WHAT THE LAW WAS:
Canadian jurisprudence has long held
that during the period of reasonable notice,
employees have a corresponding
duty to mitigate their damages. The mitigation
of damages can be achieved when
an employee makes reasonable efforts to
minimize their damages through finding
alternative employment. If an employee
fails to mitigate their losses, a court
is entitled to reduce the notice period at
common law.
WHAT’S CHANGED?
In 2012, the Court of Appeal’s decision
in Bowes v. Goss Power (“Bowes”) changed
the landscape of mitigation obligations.
In Bowes, the employer relied on an employment
contract that provided for a
specific entitlement to “reasonable notice”
upon termination but failed to mention
By Hendrik Nieuwland
garagestock/shutterstock.com
Continued on page 13
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