Typically, shareholders and directors of a corporation are shielded from personal liability for the actions and debts of a corporation. However, there are certain situations in which the courts will “pierce the corporate veil,” rendering persons liable for corporate conduct.
A recent decision in The Plaintiff v. Sakellaris (SC-21-7298) illustrates how the Consumer Protection Act, 2002 (CPA) can be used to pierce the corporate veil and prevent an individual from using a corporate entity to shield themselves from liability for their unfair business practices.
Background
The...
When Do You Not Have to Pay an Employee
Employment contracts are a tricky business. We spoke in our recent blog about the importance of employment contracts, and how they’re instrumental in setting out the expectations for both employers and employees in the working relationship. For employers especially, they are meant to provide a sense of formality, and certainty.
They can also be minefields.
That’s because employment contracts are different from most other types of contracts. Yes, it is possible to draw up a simple contract between two friends on a bar cocktail napkin and turn it into a legally binding agreement (although...
The Truth About Constructive Dismissal
Constructive dismissal is easily one of the most popular phrases from employment law within the past two decades. It is also one of the most widely misunderstood legal concepts in this field. Far too often, employees will come to see us claiming they have been constructively dismissed and then produce their termination letter, their Record of Employment, and other key documents that indicate this was not in any way constructive dismissal.
Dismissal is a common problem for employees – most employees will go through a ‘layoff,’ ‘downsizing,’ or ‘dismissal’ at least once in their careers....
The Dangers of Termination for Cause
There is still a common belief among Ontario employees that holding onto a job forever is their right, and any time that an employer ends their employment they are automatically in the wrong. “They can’t fire me!” “They can’t do that!” “They need to give me a reason.”
These employees are half right.
Yes, if an employment contract does not have a fixed end date, then that job can theoretically run forever, or at least for the employee’s lifetime. However, either side still has the power to end that contract – employees can resign, and employers have the power to end their employment...
A Few Words About Human Rights in the Workplace
When we think of human rights, we tend to think in broad terms. We think of grand historical figures in the 20th and 21st century who have been campaigning for the advancement of human rights in various forms. These are important and noble causes, but the truth is that human rights impact us much closer to home than we might imagine.
In Ontario, the Human Rights Code, R.S.O. 1990, c. H.19 (the “Code”) is the defining piece of legislation that governs our human rights in most of our lives – in accommodation, in how we form contracts, and, for our purposes here, in the workplace. In...