If I demote an employee but pay them the same, is that constructive dismissal?
Firing an employee due to poor job performance is fine, right?
Jessica Barrow from Perley-Robertson, Hill & McDougall LLP/s.r.l. dispels these common employment law myths, and more.
MYTH: An employee can sign an employment contract – even after they start working
For a contract to be enforceable, one of the key ingredients is “consideration.” That’s the quid pro quo of a contract – it’s an exchange of value.
In the employment context, this means I will hire you at X salary and in exchange you’ll do Y job pursuant to the terms of Z employment contract. If you hire someone, they start a job and you then try to get them to sign an employment contract later, the quid pro quo is already done. Now you’re asking them to agree to additional terms and conditions without receiving anything additional in return.
While consideration is generally somewhat commensurate with the thing that’s being exchanged, it doesn’t necessarily have to be money. You should consult an employment lawyer to determine appropriate consideration.
MYTH: I can fire an employee because of poor job performance
We often hear of employers working toward termination with employees they deem to be poorly performing but this will likely not provide an opportunity to terminate without proper notice under the Employment Standards Act (ESA).
A determination of just cause is needed, and the test for just cause is onerous and intended to...
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