Canada: Contract of Employment

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.

Foreign companies entering Canada face a complex employment law landscape where common US practices often fail legal scrutiny. Understanding the differences between at-will termination...

Le 21 septembre 2026, le gouvernement fédéral a présenté en première lecture le projet de loi C-39 (Loi visant à bâtir un Canada fort), un projet de loi omnibus proposant des modifications importantes au Code canadien du travail (le « Code »).

The Ontario Court of Appeal has issued a landmark ruling clarifying that ESA-compliant temporary layoff provisions are distinct from termination clauses and remain enforceable even when other termination provisions in an employment agreement are invalid. This decision narrows the application of the Waksdale precedent and provides crucial guidance on how courts will interpret the interaction between temporary layoff rights, constructive dismissal claims, and employment contract enforceability.

Le gouvernement fédéral a récemment déposé le projet de loi C31, Loi no2 d’exécution du budget de 2025, propose d'ajouter au Code canadien du travail un nouveau régime interdisant, sous réserve d’exceptions limitées, les clauses de non-concurrence dans les milieux de travail sous réglementation fédérale. Autre signal à ne pas négliger : le projet de loi prévoit aussi un pouvoir réglementaire permettan

Canadian employers face evolving restrictions on requesting sick notes from employees, with Manitoba and Prince Edward Island implementing new thresholds in 2026. This comprehensive analysis examines when employers can legally require medical documentation across all Canadian jurisdictions and outlines critical compliance steps for multi-jurisdictional organizations.

A recent Ontario Court of Appeal decision establishes that restricted stock units (RSUs) constitute a "term or condition of employment" under the Employment Standards Act, potentially entitling terminated employees to continued vesting during their notice period. The ruling in Wigdor v. Facebook Canada Ltd. resulted in a US $4.7 million award and raises critical questions about whether standard forfeiture clauses in RSU agreements can lawfully cut off vesting upon termination.

Ontario courts have grappled with whether employment contracts allowing termination "at any time" or "for any reason" violate the Employment Standards Act, 2000. The Court of Appeal has now provided clarity on this contentious issue through two landmark cases heard together, establishing a new framework for interpreting termination clauses in employment agreements.