An Ontario Superior Court ruling that allowed IBM Canada Ltd. to retrospectively rectify drafting errors that created unintended additional pension benefits for employees on disability leave augurs well for plan sponsors seeking similar relief going forward. “The case clarifies that there is a specific test for rectification of pension plans and other unilateral instruments, which […]
Ford of Canada’s recent transfer of $923 million in pension liabilities to Desjardins Group, RBC Insurance and Sun Life Assurance Co. of Canada augurs well for what has been a rapidly expanding group annuity buyout and buy-in market. “As of 2013, the group annuity market amounted to about $1 billion annually,” says Charbel Assal, senior […]
The Canada Revenue Agency’s guidance for determining a full-time remote worker’s province of employment for payroll deduction purposes, which came into force on Jan. 1, could prove burdensome to employers. “While the intention is to create certainty, whether it will do so remains to be seen,” says Sarah Mills, an employment lawyer at Blaney McMurtry […]
The Ontario Court of Appeal’s affirmation of a $1.5 million punitive damages award — reportedly the largest award of its kind in a Canadian long-term disability case — may signal greater exposure for employers and insurers that fail in their duty to treat such claims in good faith. “The court had no problem with the […]
A recent Canada Industrial Relations Board decision has raised questions about the threshold that individuals must meet to be considered dependent contractors who are therefore entitled to reasonable notice on termination without just cause. Dependent contractors, while not formally considered employees because of the degree of control and independence they enjoy, are workers who offer […]
Pay transparency legislation is quickly gathering steam in Canada as provincial governments take steps towards shrinking the gender wage gap. Prince Edward Island was first to the post with pay transparency provisions in June 2022. While Newfoundland and Labrador’s Pay Equity and Transparency Act received royal assent in November 2022, its pay transparency provisions haven’t […]
New amendments to the Canada Labour Code will exempt some employees from the legislation’s hours-of-work requirements. “These amendments are a rare example of changes that employers in the federal sector will welcome and, in some respects, [will] align the CLC to Ontario’s Employment Standards Act,” says Landon Young, managing partner of Stringer LLP, a labour […]
The Nova Scotia Labour Board has ordered St. Mary’s University to resume making pension contributions for employees on long-term disability leave, reasoning that the pension committee had no authority to make changes to contribution levels mandated by the plan. “The board found that amendments to the pension plan proposed by the pension committee — the […]
An arbitrator has ruled that a pension grievance filed seven years beyond a collective agreement’s time limit could proceed because of the employer’s “culture of acquiescence” regarding enforcement of the limit. “The message to employers is that if they get in the habit of letting time limits slide, their lack of adherence can come back […]
There have been several changes to the Canada Labour Code in recent months. Here’s an overview of what’s happened and what’s on the horizon for employers under federal labour jurisdiction. New employer obligations As of July 9, 2023, federally regulated employers must reimburse employees for reasonable work-related expenses. When determining whether an expense is related […]