Employment Standards - Articles & Videos
Case Law Update: Ontario Court of Appeal Rules RSU Forfeiture Clauses Must Comply with the ESA
On August 7, 2026, the Court of Appeal for Ontario released its highly anticipated decision in Wigdor v. Facebook Canada Ltd. This decision makes it clear that termination provisions in Restricted Stock Unit (“RSU”) agreements will not be enforceable if they attempt to contract out of the Employment Standards Act, 2000 (the “ESA”), including by requiring immediate forfeiture on termination and thereby altering a “term or condition of employment” during the statutory notice period.
Update on Building Services Providers: Common Law Notice Liability Confirmed
In most industries, when a new company takes over a contract, it has no obligation to hire the outgoing provider’s employees or assume liability for their severance. The employment relationship remains with the original employer. The building services sector operates differently.
Court Strikes Employer’s Claim Against Former Employee
In a recent decision, Geopro Consulting Ltd v. Nyland, the Ontario Superior Court of Justice struck down an employer’s lawsuit against a former employee who had reported the company to its professional regulator, triggering an investigation. The case serves as a powerful reminder of the robust protections afforded to individuals who share information with professional regulators, and highlights the risks of pursuing frivolous claims against former employees.
Another Employer Becomes a Precedent
An employee earns a substantial amount of money each year in variable bonuses. Are they entitled to that bonus as part of their severance? If so, how do you assess what they should get when the amounts varied greatly from year to year?
Payback? Not So Fast
One of your employees has really done it this time. This is not the first time, and you warned the employee that a repeat of this behaviour may result in their dismissal for cause. So, you dismiss the employee for cause. The employee will be gone but the impact of their mistake remains. Can you recoup these funds from the employee, either by withholding the outstanding amount from the employee’s final paycheque or by suing the employee?
Court of Appeal Agrees that Termination Clause is Unenforceable
The recent Court of Appeal decision in De Castro v. Arista Homes Limited follows the current trend of courts frequently striking down termination clauses in employment contracts. In that decision, the Court of Appeal sided with the employee and upheld an award of damages that was far greater than the compensation set by the employment contract. This should serve as another reminder to employers of the significant liabilities they may face in a wrongful dismissal lawsuit and the need to have carefully drafted and up-to-date employment contracts.
Reminder: Employer Obligations on Election Day
As we approach an election, it’s important that employers understand their obligations and employees understand their rights for voting.
Maximum Hours of Work: Can An Employee Be Asked to Work Extra Hours?
Even with an Excess Hours of Work Agreement, there are limits on how many hours an employee can be required to work.
Further Update on Termination Clauses: Baker v. Van Dolder’s Home Team Inc.
Over the last few years we have seen a pattern in Ontario of courts highly scrutinizing termination clauses.
Legislative Update: Upcoming Changes to the ESA and the OHSA Effective July 1, 2025
The Ontario government has provided clarification on a few notable changes introduced in Bill 190 and earlier legislative updates.















