Canada Employment Contract Case: Background
In a recent case, an employer laid off an employee in Canada citing economic reasons. The employee served his two month notice period but continued to serve an additional month with the same employer before final dismissal. The employee subsequently went to court contesting that a second Canadian employment contract or service contract agreement had been entered into and the employer was now required to comply with another dismissal procedure at the end of the extra month’s service.
Canada Employment Contract Case: Verdict
Due to the lack of proper documentation, the employer failed to prove in Court that the extension of notice was not entry into a new employment contract as per Canadian Employment Laws. The Court ruled that the employee should have been terminated under the rules and procedures prescribed in French law.
Canada Employment Law:
Prior Court rulings on notice period extension:
* Both the employer and the employee may extend the notice period for a limited period of time, but this agreement must not be deemed as the entry into of a new employment contract.
* In case of a litigation, the employer has the onus to prove whether the parties had agreed or not for the extension of notice period.
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