Canada: Employment and HR

The Ontario Court of Appeal has ruled that contractual labels cannot override the true nature of working relationships, even when workers choose independent contractor status for tax benefits. This decision examines how shareholding in a company intersects with employment status and whether foreign forum selection clauses can prevent Ontario workers from accessing provincial employment protections.

When an Ontario employer terminates an employee holding unvested Restricted Stock Units, can forfeiture clauses in equity agreements lawfully eliminate the employee's right to continued vesting during the statutory notice period? The Ontario Court of Appeal's decision in Wigdor v. Facebook Canada Ltd. addresses this critical question, examining whether such provisions impermissibly contract out of Employment Standards Act protections and what financial consequences employers face when equity forfeiture term

Canadian employment law faces evolving challenges as courts navigate cross-border contractor disputes, bad faith termination damages, and the potential prohibition of non-compete clauses under proposed federal legislation. Recent judicial decisions highlight critical distinctions between employee rights and contractual obligations, while examining the interplay between asset purchase agreements and employment contracts in business transactions.