The Future of Remote Employment

As the worst of the Pandemic moves further into our rearview mirror, more employers are asking their employees to return to the office either five days a week or in a hybrid model.

Who Can Work Remotely?

Not all employees are capable of working from home. It will depend on the nature of the employment relationship. Some employment contracts for office employees may still require in-person attendance based on the duties they are supposed to carry out (i.e., meeting with clients or organizing office materials).

In many cases, the employment contract will also specify where the workplace location is. Since the emergency aspect of the Pandemic has largely ended, employees that worked remotely may have been recalled into the office. Employers retain the right to recall their employees.

However, should an employer continue to allow its employees to work from home for the foreseeable future, it may not be able to call them back in at a later date. Employers that continue to enable employees to work remotely long after the emergency phase of the Pandemic may be implicitly altering the terms of the employment contract. Thus, they may lose the right to recall the employees back to the office.

Where Can Employees Work Remotely?

It was not uncommon to see employees move farther away from their in-office work location during the Pandemic. Since employees were not required to work in person, they could work remotely from a distance. For some, this meant moving away from the big city to the suburbs. For others, this may have meant moving to a different city, province or even country.

Employers and employees should be conscious of this moving forward. Employment law may differ across various jurisdictions. For example, Alberta employment standards or California employment standards differ from Ontario employment standards. If an employee is working in another jurisdiction, the employer could be bound by those laws. Employers and employees should also be aware of this for tax issues, human rights, and other purposes.

Moving forward, businesses should address permitted work locations in the employment contract to avoid such issues with remote employees if they do not do so already.

Monitoring Remote Workers

Ontario recently introduced new legislation on the electronic monitoring of employees (which you can read more about here). Organizations with 25 or more employees must now have a written policy on monitoring employees electronically. This includes:

  • A description of how the employees are monitored;
  • In what circumstances an employee may be monitored; and
  • The purposes for which the information obtained through electronic monitoring may be used.

Even if the employer is not required to provide a written policy to its employees, it should consider doing so anyway.

With remote work comes the potential for more time theft. This means employees are doing personal things (i.e., watching Netflix) during the hours they are supposed to be working. Employees should be aware moving forward that they may be monitored, even while at home (while using a work laptop, for example). A recent BC Tribunal decision actually required a remote employee to pay their employer $2,600 for time theft which was discovered via electronic monitoring software.

Main Takeaway

There are many aspects employers and employees should take into account when deciding if remote work is right for them. As discussed, not even all types of office employees can work from home. Moreover, both parties should also be aware of jurisdictional issues if the remote employee moves to another province or country. Lastly, employees should be aware of the new legislation on electronic monitoring. Even while working remotely, employees engaging in time theft can be caught and potentially be liable.

For further reading and information on the remote work issue, click here.

Short Service Employees Large Severance Package

Employees terminated after being employed for a short period of time commonly believe they are entitled to a small severance package. However, this is not always the case. Under common law, individuals who are terminated without cause must be given reasonable notice or paid in lieu of notice.

Determining how much severance pay one is owed depends on a number of different factors (referred to as the Bardal factors). Importantly, none of the factors are given more weight than the others. Therefore, an employee’s service time may be short, but other factors may result in that employee receiving a large severance package.

Various Factors a Court will Rely On:

An employee’s age at the time of termination is one of the factors. The basic principle is the older a person is, the more justification there is for a longer notice period. Older individuals may have a harder time finding similar employment compared to their younger counterparts.

As already mentioned, the service time is another relevant factor. Generally speaking, the longer someone worked continuously for an employer, the longer the notice period may be.

The employee’s character of employment is also considered. In other words, did they have a high-ranking position in a company that might be difficult to find again.

The level of compensation is relevant too. Again, the higher one’s salary is, the more difficulty they might have found a similar level of pay.

The employee’s ability to find comparable employment considering their education, job qualifications and the current economic climate is also a relevant factor. A recession may mean the employee will have an even more challenging time finding comparable employment. Thus, this may help justify a longer notice period.

Circumstances that May Aid Short Service Employees Obtain Large Severance Packages:

Since service length is not the only factor in determining notice periods, and all factors should be given equal weight, there can be a number of things which while help a short-service employee receive a longer notice period.

The following list is examples of circumstances that will drastically reduce an employee’s chance of finding similar employment:

  • Older age
  • Health issues
  • Recruited by the employer who terminated you
  • Pregnancy
  • Lack of formal education or diverse job qualifications
  • Spending an entire adult life working with the same company

Recent Decision of Humphrey v. Mene:

The Court recently held that a 32-year-old employee who was only employed for three years was entitled to 12 months of severance. The employee had asked for a salary review at the same time as her promotion. In response, the company questioned her loyalty to the company. One month later, she was terminated by the employer “with cause”.

The court decided that she was wrongfully dismissed and was entitled to 12 months’ notice for the following reasons:

  • She was terminated for cause and would have to explain that to future prospective employers;
  • It can be more difficult for women to obtain senior executive positions, especially considering her age of only 32; and
  • She was a high-ranking employee with a managerial role (which helps justify a longer notice period). It is commonly accepted that executives have more difficulty than the average person finding comparable employment.

The case then went to the Court of Appeal, which agreed with the 12-month notice period (but reduced the package to 6 months because the employee did not adequately search for new employment). The Court of Appeal reiterated the fact that all relevant circumstances must be considered, not just the length of service. As the court stated, “because no single Bardal factor should be given disproportionate weight or be treated as determinative, a short notice period of service will not always lead to a short period of notice.”

It would be incorrect for the court to overemphasize the short service time and underemphasize the character of employment and the level of compensation.

Main Takeaway:

Short-service employees may not be entitled to long notice periods. However, as discussed above, there are numerous factors that also must be equally considered. Due to this fact, short-service employees may be owed longer severance than they might originally believe. If you are unsure about your own situation, if you are a recently terminated, short-service employee, please contact our law firm.

Ontario Electronic Monitoring Policy Requirement

As of October 11, 2022, all employers in Ontario with 25 or more employees must now have a written policy on the electronic monitoring that takes place. This requirement stems from an amendment to the Employment Standards Act (ESA) earlier in 2022.

Our wrongful dismissal lawyer in Toronto emphasizes that this is an important change for employers to understand. The following will be a breakdown of how it works and if it applies to you.

The Policy Requirement:

The electronic monitoring policy must include:

  • If the employer electronically monitors employees;
  • A description of how the employer monitors;
  • What circumstances the employer may monitor;
  • How any information obtained by the employer through electronic monitoring may be used; and
  • The date the policy was prepared, as well as the date any changes were made to it.

The policy must be made available to every employee within 30 days from the date the employer is legally required to enact such a monitoring policy.

What is Electronic Monitoring?

The ESA does not define what exactly electronic monitoring is. However, the Ontario Ministry of Labour does provide some guidance on the subject. Essentially, electronic monitoring captures any monitoring which occurs electronically on equipment issued by the employer whether it be at or away from the workplace. Electronic monitoring may also apply to employees using personal equipment that is used for work purposes.

Here are some examples provided by the Ministry of Labour of when an employer is monitoring its employees electronically:

  • The employer uses a GPS to track the movement of an employee’s delivery vehicle;
  • The employer uses an electronic sensor to track how quickly employees scan items at a grocery store check-out;
  • Tracks the websites that employees visit during working hours.

What is an Employee?

An individual who meets the ESA definition of an employee is included in the count. This means that all full-time, part-time, and casual employees are included. The Ministry of Labour also provides additional guidance on who may be considered an employee for the purposes of the policy:

  • Homeworkers
  • Probationary employees
  • Trainees
  • Officers of a corporation who perform work or supply services for a wage
  • Employees on a fixed-term contract
  • Employees who are on lay-off, so long as they have not been terminated permanently
  • Employees on leave of absence
  • Employees on strike or locked-out

What is Meant by 25 or More Employees?

The new electronic monitoring policy law also captures more complex workplaces. For example, if an employer has 3 locations which each have 10 employees, that still meets the threshold as the aggregate number is used. That employer employs 30 individuals.

Likewise, there are circumstances where two or more employers may be treated as a related (or a single) employer. Thus, all employees employed in Ontario by these employers will be included in a single count.

Does the Policy Requirement Apply to You?

If the employer engages in electronic monitoring as described above, as well as employs 25 or more people as described above, then a written electronic monitoring policy is required.

Deadline

If you are an employer with 25 or more employees as of January 1, 2022, your electronic monitoring policy was required by October 11, 2022. If you did not meet these criteria, but as of January 1, 2023 you will employ 25 or more people, you must have a written policy by March 1, 2023.

More Information

For more information, please see the Ontario Ministry of Labour website, or contact our law firm for advice.