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Lecture 8

Management and Organizational Studies 2275A/B Lecture 8: bizlaw lecture 8 employment

Management and Organizational Studies
Course Code
MOS 2275A/B
Philip King

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Employment Law
Every employment relationship is contractual…
…whether the contract is in writing or not
Managing people is the most difficult and important thing you will
Built-in inequality of power
1. Notion of voluntariness and things being equal is gone
Various rules and principals added to regular contract law because
people need employment (ex:// to feed their families)
What changed the labour landscape… (from what it was to how it
is now with safety nets)
1. Development of middle-class (after WWI)
Had disposable income (more money than necessary
to survive)
Said they were willing to give some money back to help
our the less fortunate, which lead to establishment of
programs protecting most vulnerable people
2. Involvement of women in politics
Advocated for rights of vulnerable people (minorities,
children, women, people with disabilities, etc.)
Health and safety laws, employment standards,
3. Labour unions
Theory that individual employees have no bargaining
power, but collectively they do
Employers initial reaction to unions was violent (1920s)
1. Vicarious liability --> with employee
Ex:// if your plumber injures themselves on the job then they
are liable, not you
2. Employment legislation
3. Income tax deductions
Do for employees, not independent contractors
Courts will consider all relevant factors (1 & 2 are most important)
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4. Control test
Who exercises control over the work that is done
If it is person doing work, they are independent
contractor (ex:// plumber)
If it is person that work is being done for, they are
employee (ex:// receptionist)
2. Organization test
How integral is the person to your organization
If they are central then they are an employee
3. All other factors
Written agreement (not one of most important factors
Obligation of Employers:
Pay salary or wages
Provide safe working conditions
Honour employment contract
Obligations of Employees:
Work competently, honestly
Be punctual
Be loyal
Fiduciary duty (maybe)
Termination of Employment
"Just Cause"
Employee has done something really bad, where employer can
treat employment relationship as over
Serious misconduct
Illness (not really)
If illness is disability, terminating would be illegal
(discrimination), and employer has duty to
accommodate because of the disability
Courts do not like it and there is high threshold to prove
Burden of proof is on employer
There must be warning that allows employee to improve prior to
termination in order for their to be cause
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