Business Law Chapter 10 Questions
First question have to ask: Is this an employment relationship?
Second question to ask: Is there a union? If there is, what does the collective agreement say? If there is
not a union, what does the individual agreement say about the contract?
An employee can terminate an employee for cause or not for cause in a non-unionized environment. If
the employee has done something wrong, the employer doesn’t owe a dime to the employee nor does
he have to give a notice. If the employee has done nothing wrong, the employer can give a reasonable
notice or give reasonable pay for amount of time required to find new job of equal value–puts them
back into position before breach (pay in lieu of notice). The factors the court will look at are for how
much pay is reasonable: the employee’s age, time of termination, employee’s position, length of
employment, and the economic climate (London employment rate, etc.).
1) We have to see if the individual is an employee. Wrongful dismissal is only available for
employees. Bill is in the Chair of Health and Safety Committee and he gets paid by Electrictian R
US. But he also supplies his own tools and drives his own vehicle. It depends on the rest of the
story. If the company didn’t give him reasonable notice or pay in lieu of notice, he might be able
to raise an action.
2) 0. There is a wrongful cause. He breached a condition of the contract. An implied term in a
contract is you can’t steal from the company and you can assault others.
3) It is not for cause. He didn’t do anything wrong. The company owes him something, either
money or notice. What is reasonable? What does employment contract say – likely higher than
Employment Standards Act (usually should be higher pay than what Employment Standards Act
says), what does Employment Standards Act say (usually very low), and what other cases
awarded for the notice pay. The fact that he gets another job in two weeks, it will likely reduce
that amount (full amount for two weeks to find job, and difference of pay between new and old
job for the notice pay.) If new job pays less, then the company has to pay for the difference of
the pay for the notice period. The employee has the legal obligation to mitigate losses and find a
4) Human Rights Legislation. He has been discriminated against. The Human Rights Code says that
the employer has an obligation not to discriminate based on a list of 16 things. If they do
discriminate, the employee can sue. If employee asks for an accommodation that regar