Audit, Compliance and Risk Blog

Federal Distributing Corporations Report Expanding Board Diversity

Posted by Jon Elliott on Tue, Jun 21, 2022

Beginning in 2020, the Canada Business Corporation Act (CBCA) requires federal distributing companies to disclose annually the diversity in their boards and senior management. (CBCA s. 172.1). Disclosures are made to shareholders at annual meetings, and in filings with Corporations Canada. Corporations Canada has now published its review of filings covering calendar year 2021, citing the latest information and comparing with 2020 reports to assess initial progress.

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Tags: Labour & Employment, CBCA, Canada, Directors Liability, CBCR

New legislation imposes additional legal obligations for Ontario workplaces

Posted by BLG’s Labour and Employment Group on Mon, May 16, 2022

Employers in Ontario need to be aware of several new obligations as a result of Bill 88, the Working for Workers Act, 2022. They include a written policy on electronic monitoring for certain employers, new measures regarding “information technology consultants” and “business consultants,” a new legislative framework for digital platform workers and additional occupational health and safety legislation obligations. Steps can be taken now to proactively plan for the changes that are in force and that will come in force in the near future.

Bill 88 was passed by the Ontario legislature on April 7, 2022 and received royal assent on April 11, 2022. Employers should be up to date with Bill 88 in order to ensure compliance. Here is a summary of the key points from Bill 88.

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Tags: Business & Legal, Employee Rights, Employment Law, Labour & Employment, Ontario

Ontario Court of Appeal Punishes Directors For Breaching Fiduciary Duties

Posted by Jon Elliott on Mon, Mar 28, 2022

In December, the Ontario Court of Appeal reviewed a case involving two disputing factions in a 5-member partnership (Extreme Venture Partners Fund I LP v. Varma).1  The two partners who managed the activities decided that their efforts were being undervalued by the other 3, and responded by starting competing businesses, diverting resources from the original entity, and hiding these activities. The other 3 partners eventually found out and sued them for breaches of their fiduciary duties. The trial court found against the wrongdoers, and on appeal the Court of Appeal actually increased their punishment.

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Tags: Labour & Employment, Canada, Directors Liability, Ontario Court

“Bad Faith” Termination Yields Bad Consequences for the Employer

Posted by Jon Elliott on Mon, Jan 10, 2022

In October, the Ontario Superior Court of Justice granted summary judgment to an ex-employee suing her ex-employer for wrongful dismissal, aggravated damages for mental distress and punitive damages. In this case, Humphrey v. Menē, Inc., the Court found that the employer’s “bad faith” termination had invalidated the termination clause in the parties’ employment contract, and then rejected the employer’s change in argument from a termination for cause to termination without cause, and awarded 11 months’ wages at the salary of $90,000, aggravated damages of $50,000 due to mental distress, and $25,000 in punitive damages for 2.7 years of service.

Remembering that summary judgment is only available when the court decides there’s no genuine issue of fact that would justify a trial, this represents an extreme outcome. However, it still should remind employers to tread carefully when moving to terminate an employee.


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Tags: Labour & Employment, Canada, Ontario Superior Court of Justice

Parts of Ontario employer vaccine policy found unreasonable in arbitration

Posted by BLG’s Labour and Employment Group on Mon, Dec 06, 2021

While BLG’s recent article highlighted an employer’s successful defence of its COVID-19 vaccine policy in UFCW v. Paragon Protection, the outcome was different in Power Workers’ Union v. Electrical Safety Authority.

On November 11, 2021, Arbitrator John Stout found that the mandatory vaccination policy of the Electrical Safety Authority (ESA) was unreasonable to the extent that employees may be disciplined, discharged, or placed on unpaid leave for failing to get fully vaccinated; however, Arbitrator Stout emphasized that context is everything. As detailed below, his conclusion rested on a few factors specific to this workplace. He emphasized that the outcome may be different elsewhere or at another time.

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Tags: Business & Legal, Employee Rights, Covid-19, Employment Law, Labour & Employment, ESA, Vaccine, Immunization

WorkSafeBC – COVID-19 safety plans shift to communicable disease prevention

Posted by BLG’s Labour and Employment Group on Tue, Sep 14, 2021

British Columbia moved into Step 3 of the BC Restart Plan on July 1, 2021, and one of the main implications for employers is a shift from COVID-19 safety plans to general communicable disease prevention. WorkSafeBC has released its guidance on communicable disease prevention, and employers should be adapting their COVID-19 safety plans to communicable disease prevention with this guidance in mind.

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Tags: Business & Legal, Employee Rights, Covid-19, Employment Law, Labour & Employment, British Columbia, BC Restart Plan, Communicable Disease Prevention

Ontario Reviews When Directors May Be Liable Across Common Employers

Posted by Jon Elliott on Tue, Sep 07, 2021

In June, the Ontario Court of Appeal issued a decision addressing two issues that should interest corporate directors – certainly in the province, and probably throughout Canada. The case is O’Reilly v. ClearMRI Solutions Ltd., and the issues it addresses are:

  • when might two companies be considered “common employers” of a single individual employee, sharing responsibilities for compliance with applicable labour laws; and

  • when might corporate directors, including directors of “common employers,” become personally liable for their company’s non-compliance with those laws.

The rest of this note discusses these issues, and the O’Reilly case decision.


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Tags: Labour & Employment, Canada, Directors Liability, Ontario Court

Another Encouragement for Canadian Directors to Consider Non-shareholder Interests

Posted by Jon Elliott on Wed, May 19, 2021

Whose interests should corporate directors consider when running their companies? At least since 2008. The prevailing view in Canada is that while directors must consider shareholders’ interests, they may also consider the interests of other stakeholders. For example, in 2008, the Supreme Court of Canada decided the case BCE Inc. v. 1976 Debentureholders, allowing but not requiring consideration of debenture holders. Recently this permission has been shading toward an expectation.

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Tags: Labour & Employment, CBCA, Canada, Directors Liability

The right to bare arms: Considerations for COVID-19 vaccines in the workplace

Posted by BLG’s Labour and Employment Group on Tue, Apr 06, 2021

One of the most talked about topics when it comes to the scheduled roll out of the COVID-19 vaccine this year is whether an employer is entitled to require its employees to receive the vaccine in order to remain at or return to the workplace.

It’s a multifaceted issue, and it deserves fulsome consideration when discussing the important role employers could play in the national vaccination campaign, which is a key component of the fight against the spread of COVID-19 within an employer’s workplace and more broadly. However, that is not the only interest at play. An employer’s obligation to provide a safe workplace must be balanced with employees’ potentially competing interests, such as the fundamental freedom to make inherently personal choices about one’s own body. This can include competing rights relate to health or religious beliefs and trigger protection under human rights legislation.

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Tags: Business & Legal, Employee Rights, Covid-19, Employment Law, Labour & Employment, Vaccine, Immunization

Employment Law: Protecting Whistleblowers Protects the Organization

Posted by Jon Elliott on Wed, Mar 17, 2021

Regulators often rely on whistleblowers to reveal ongoing violations, and prosecutors rely on whistleblowers and informants from time to time to “make their cases.” Recognizing this value, many federal and state laws provide explicit protections for employees who report actual or potential violations to their employers or to the agencies that administer and enforce those laws.

The Occupational Safety and Health Administration (OSHA) has administered such a provision for workers disclosing violations of the Occupational Safety and Health Act for more than 40 years. In the intervening decades, a wide variety of federal statutes have expanded OSHA’s whistleblower protection activities, assigning OSHA to enforce whistleblower protection provisions of other laws; as of 2021 this authority covers 24 distinct federal laws. The best known and most litigated of these non-worker laws probably is the Sarbanes-Oxley Act of 2002 (SOx) – Section 806 of that law protects whistleblowers who report activities that may violate anti-fraud provisions of the federal Securities Acts. The rest of this posting identifies these laws, and summarizes how OSHA administers them.

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Tags: OSHA, tsca, Labour & Employment, SDWA, ACA, ERA, FSMA, FRSA, OSH Act, AMLA, AHERA, CFPA, CPSIA, CAARA, FWPCA, ISCA, NTSSA, PSIA, SPA, STAA, TFA