Employment Law for Business and Human Resources Professionals 5e 1
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CHAPTER 1
Overview of Legal Framework
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Employment Law for Business and Human Resources Professionals 5e 4
Learning Outcomes
After completing this chapter, you will be able
to:
• Identify the three main sources of employment
law and their respective roles.
• Understand how and why employment law
changes.
• Understand jurisdiction over employment law.
• Identify key employment-related statutes, with a
particular focus on Ontario and federal law.
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Employment Law for Business and Human Resources Professionals 5e 5
Learning Outcomes (cont.)
• Understand the relevance of the Canadian
Charter of Rights and Freedoms to employment
law.
• Understand the judicial and administrative
systems that interpret employment laws.
• Distinguish between an employee, a dependent
contractor, and an independent contractor.
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Employment Law for Business and Human Resources Professionals 5e 6
Sources of Employment Law
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Employment Law for Business and Human Resources Professionals 5e 7
Sources of Employment Law
(cont.)
• Statute law refers to laws (also called legislation,
acts, or statutes) passed by the federal or
provincial/territorial government
• Most employee rights contained in statutes apply
to both unionized and non-unionized employees
• Employment statutes historically have set out
minimum standards for working conditions
• Other statutes may affect the employment
relationship, such as anti-discrimination legislation
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Employment Law for Business and Human Resources Professionals 5e 8
Sources of Employment Law
(cont.)
• How are statutes made?
• Both in Ontario and the federal government, a bill
must pass three readings in the legislature to
become a statute
• Public bills are of general application and are
introduced by the Cabinet minister who is
responsible for the relevant subject
• Private members’ bills may deal with public
matters, but they are introduced by private
members rather than Cabinet ministers
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Employment Law for Business and Human Resources Professionals 5e 9
Sources of Employment Law
(cont.)
• A bill becomes a statute once it receives Royal
Assent
• Regulations: rules made under the authority of a
statute
• E.g., Employment Standards Act, 2000 is
legislation, but minimum wages for various
occupations are found in regulations that
accompany the Act
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Employment Law for Business and Human Resources Professionals 5e 10
Sources of Employment Law
(cont.)
• Key Ontario employment statutes:
• Employment Standards Act, 2000
• Human Rights Code
• Labour Relations Act, 1995
• Occupational Health and Safety Act
• Workplace Safety and Insurance Act, 1997
• Pay Equity Act
• Accessibility for Ontarians with Disabilities Act,
2005
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Employment Law for Business and Human Resources Professionals 5e 11
Sources of Employment Law
(cont.)
• Federal employment law is restricted by the
Constitution Act, 1867 to industries of national
importance
• Federal employment statutes include:
• Canada Labour Code
• Canadian Human Rights Act
• Employment Equity Act
• Personal Information Protection and Electronic
Documents Act (PIPEDA)
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Employment Law for Business and Human Resources Professionals 5e 12
Sources of Employment Law
(cont.)
• The Canadian Charter of Rights and Freedoms
was adopted as part of the Constitution Act, 1982
• Charter does not specifically address employment
law, but the rights guaranteed within it can affect
the workplace when government action is involved
• Most important Charter guarantee from an
employment perspective is section 15
• Also important is section 33, known as the
notwithstanding clause
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Employment Law for Business and Human Resources Professionals 5e 13
Sources of Employment Law
(cont.)
• Common law is the law that has developed from
court decisions, or case law
• Operates on the basis of precedent
• Stare decisis – higher court decisions are binding
on lower courts in the same jurisdiction and in
similar situations
• Occasionally high courts may decide to expand the
boundaries of previous rulings or depart entirely
from them
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Employment Law for Business and Human Resources Professionals 5e 14
Sources of Employment Law
(cont.)
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Employment Law for Business and Human Resources Professionals 5e 15
Sources of Employment Law
(cont.)
• Two branches of the common law that affect
employment are:
• Contract law regulates contractual relationships,
including the terms and conditions of non-union
employment; and
• Tort law is a branch of civil law (non-criminal
law) that covers torts, or wrongs for which there is
a civil remedy
• Torts may be deliberate or negligent
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Employment Law for Business and Human Resources Professionals 5e 16
Judicial Framework
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Employment Law for Business and Human Resources Professionals 5e 17
Judicial Framework (cont.)
The Administrative System
• Administrative tribunals make decisions in
specialized areas, such as employment standards
or discrimination
• Administrative agencies or commissions may be
empowered to investigate complaints or make
rulings
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Employment Law for Business and Human Resources Professionals 5e 18
Defining the Employment
Relationship
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Employment Law for Business and Human Resources Professionals 5e 19
Defining the Employment
Relationship (cont.)
• An individual may be considered an independent
contractor for tax purposes but an employee for
the purposes of a wrongful dismissal action
• Once proclaimed, the Digital Platform Workers’
Rights Act, 2022 will introduce certain protections
for gig workers who perform digital platform work
• An agent is someone who represents another
person—the principal—in dealings with a third
party
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