In the context of the pandemic, if there is a question that employers have frequently faced, it is whether employees who decide to work remotely from Québec are covered under Québec’s Act Respecting Labour Standards, which sets out minimal conditions of work.
The Québec Administrative Labour Tribunal recently rendered a decision that offered a rare look into the territorial scope of the act—and may have provided a framework for addressing the remote work question.”
The tribunal, called upon to rule on an application for review, had to consider whether the act applied to a remote worker employed by an American company who resided and worked in the province of Québec, but whose services were exclusively provided to clients located in the United States.
An American company selling business management software hired the employee, who resides in Québec, as the company planned to enter the Canadian market. However, that plan never came to fruition and the employee ultimately provided services exclusively to clients located in the United States, both from her home office in Québec and on-site at client locations in the United States.
The employee worked for the company for five years, after which the company opted to sell its Canadian activities to a third party. As a result, the employee’s employment was terminated and she filed a complaint under section 124 of the act, claiming that she had been wrongfully terminated.
In a first judgment, the tribunal initially...
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