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Avoiding Frostbite: A Primer on Canadian Employment, Immigration and Labour Laws July 17 th , 2012 Presented by: Andrea Raso Amer, Fraser Milner Casgrain LLP Tony Schweitzer, Fraser Milner Casgrain LLP Sanjeev Dhawan, Hydro One Robert Nagle, Saul Ewing LLP

Avoiding Frostbite: A Primer on Canadian Employment, Immigration and Labour Laws

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Andrea Raso Amer and Tony Schweitzer were invited to present this primer on Canadian Employment at a special CLE dealing with Canadian Labour and Employment in Philadelphia on July 17, 2012.

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Page 1: Avoiding Frostbite: A Primer on Canadian Employment, Immigration and Labour Laws

Avoiding Frostbite: A Primer on Canadian Employment, Immigration and LabourLawsJuly 17th, 2012

Presented by:Andrea Raso Amer, Fraser Milner Casgrain LLPTony Schweitzer, Fraser Milner Casgrain LLP

Sanjeev Dhawan, Hydro OneRobert Nagle, Saul Ewing LLP

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Labour & Employment Law

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Labour & Employment Law:

Key Differences Between U.S. and Canada

1. No “at‐will” employment 

2. Constructive Dismissal

3. Overtime entitlement

4. Leaves of absence

5. Workers Compensation

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Key Differences Between U.S. and Canada cont’d

6. Group terminations

7. Drug and alcohol testing

8. Benefits

9. Successor employer

10. Restrictive Covenants

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Overview

• Provincially governed (except banks, transport, telecommunications)

• Minimum employment standards governed by legislation

• Labour relations governed by separate legislation

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1. No “at‐will” employment

• Minimum notice pursuant to employment standards legislation applies to everyone (e.g. one week of notice per year of service to a maximum of 8 weeks)

• But, common law provides more

• No formula:  Age; length of service; character of employment; availability of alternative employment; any other factor court considers relevant

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To avoid common law notice:

* Employment ContractDO – Carefully state the amount of notice to be 

provided on terminations, which must be at least minimum employment standards

DO – State that no further amounts owing pursuant to common law

DO – Address benefits

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“Cause” for termination

• Very high threshold

• No “near cause”

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2. Constructive dismissal

• A change to a fundamental term or condition of employment

• Common law notice owing

DO – Provide as much notice as possible if changing a fundamental term or condition of employment

DO – Provide for flexibility in job duties where possible

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3. Overtime entitlement

• “Salaried” employees not necessarily exempt from provincially legislated overtime

• Managerial and high tech exclusions

DO – State whether overtime applies in contract

DO – Avoid setting hours of work for managersand high tech professionals

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4. Leaves of Absence

• Legislated leaves of absence include: pregnancy leave – maximum 17 weeksparental leave – maximum 35 weeks

• Family responsibility/compassionate care leaves

• No statutory “sick leave” but disability benefits plan must be considered

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5. Workers Compensation

• Administered by provincial governments

DO – Any entity with one or more employees inCanada must register with Workers Compensation Boards

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6. Group Termination

• Layoffs of 50 or more employees

DO – Provide extended notice pursuant to provincial statute

DO – Notify the government Director responsible for Employment Standards

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7. Drug and Alcohol Testing

• Pre‐employment and random testing is rare – only for highly safety‐sensitive positions in some provinces

• Allowed for accidents or near misses where a “reasonable suspicion” of impairment

• Allowed where employee has a history as party of terms of employment

DO – Have a drug and alcohol policy compliant with laws of the province

DO – Consider duty to accommodate to point of “undue hardship” pursuant to human rights legislation

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8. Benefits

• Government funded basic health care

• Not required by law but many employers offer:  extended health; dental; AD&D; life; disability/income replacement

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9. Successor Employer

• Broad definition of a “sale of a business”e.g. asset purchase; lease; purchase from atrustee in bankruptcy

• Become bound to any existing collective agreement

• Employees retain original service date with the vendor

DO – Seek a summary of vendor’s employees’ service dates and any contract terms regarding termination

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10. Restrictive Covenants

1. Confidentiality

2. Non‐solicitation

3. Non‐competition

*  Courts will not blue pencil/amend clauses to make them enforceable

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Governing Bodies

• Employment Standards Tribunals

• Human Rights Commissions/Tribunals

• Labour Relations Boards

• Workers Compensation Boards

• Supreme/Superior Courts or Courts of Queen’s Bench

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“DOs”Contractually:

DO – Carefully state the amount of notice to be provided on terminations, which must be at least minimum employment standards

DO – State that no further amounts are owing pursuant to common law

DO – Address benefits on termination

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“DOs” cont’d

DO – Provide for flexibility in job duties where possible

DO – State whether overtime applies

DO – Avoid setting hours of work for managersand high tech professionals

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“DOs” cont’dDO – Give as much notice as possible of a job 

change

DO – Any entity with one or more employees inCanada must register with Workers Compensation Boards

DO – Provide extended notice pursuant to provincial statute if terminating 50 or more employees and notify the government Director responsible for Employment Standards

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“DOs” cont’d

DO – Have a drug and alcohol policy compliant with laws of the province

DO – Consider duty to accommodate to point of “undue hardship” pursuant to human rights legislation

DO – On a corporate transaction, seek a summary of vendor’s employees’ service dates and any contract terms regarding termination

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Business Immigration

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Tips for Entry to Canada

1. Bring supporting documents (i.e. Roundtrip ticket, hotel booking, contacts/agreements, certificates, invitations)

2. Evaluate the implications of any promotional print materials, models, exhibits, or electronic information on cell, laptop, etc.

3. Prior misdemeanours4. Stick to the script5. Be cooperative6. If denied entry, do not try to enter at another border7. Keep notes on questions asked by border officials

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Business Visitors ‐ IRPA Regulations

•No work permit required

•R.186. A foreign national may work in Canada without a work permit (a) as a business visitor to Canada within the meaning of section 187;

•Business visitors

•R.187. (1) For the purposes of paragraph 186(a), a business visitor to Canada is a foreign national who is described in subsection (2) or who seeks to engage in international business activities in Canada without directly entering the Canadian labour market.

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• Specific cases• (2) The following foreign nationals are business visitors:• (a) foreign nationals purchasing Canadian goods or services for a foreign business or government, or receiving training or familiarization in respect of such goods or services;

• (b) foreign nationals receiving or giving training within a Canadian parent or subsidiary of the corporation that employs them outside Canada, if any production of goods or services that results from the training is incidental; and

• (c) foreign nationals representing a foreign business or government for the purpose of selling goods for that business or government, if the foreign national is not engaged in making sales to the general public in Canada.

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• Factors

• (3) For the purpose of subsection (1), a foreign national seeks to engage in international business activities in Canada without directly entering the Canadian labour market only if

• (a) the primary source of remuneration for the business activities is outside Canada; and

• (b) the principal place of business and actual place of accrual of profits remain predominately outside Canada.

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Business Visitors

• Do not require work permits to conduct international business activity in Canada

• May still require a Temporary Resident Visa 

• “Apply” for entry as a Business Visitor each time they enter Canada, even if they have a multiple‐entry visa

• Have a maximum 6 month stay, which may be extended 

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Business Visitors

• Examples include:

– Attending business meetings

– Providing or receiving training

– Negotiating contracts  

– Meeting potential investors 

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Business Visitors (cont’d)

• More examples:

– Attending seminars and conferences

– “Hands off” monitoring or reviewing of business activities

– After sales service pursuant to a Sales Agreement

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Business ImmigrationWork Permits

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Work Permits

• “Work” is defined in the Immigration and Refugee Protection Act (IRPA) in Regulation 2, as follows:

“An activity for which wages are paid or commission is earned, OR that is in direct competition with the activities of Canadian citizens or 

permanent residents in the Canadian labour market.”

• Is the Foreign Worker providing a service for which one would normally pay a Canadian / Permanent Resident to perform?

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Work Permits

– International Treaties/ Agreements: 

• GATS, NAFTA, Chile, etc.

– IT Workers Program

– Post‐graduates (who have obtained student permits and graduated from Canadian post‐secondary institution)

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Work Permits

– International students

– Working Holiday Programs / Youth Exchange Programs

– Spouses of work permit holders (with exceptions)

– “Significant Benefits” category

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Intra‐Company Transferees

•Both the Immigration and Refugee Protection Act (IRPA) and international treaties allow for the transfer of personnel to Canada from related foreign entities:

– Canadian company and foreign company with which the foreign worker is currently employed must possess proper corporation relationship (ie. parent, subsidiary, affiliate by common ownership)

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Intra‐Company Transferees (cont’d)

– Foreign worker must fall within the senior managerial executive/ essential function or “specialized knowledge”categories and be transferring to such a position

– Foreign worker must have been employed with foreign entity for at least 1 continuous year within the past 3 years

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Labour Market Opinions

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Labour Market Opinions (LMO)

• Some work permit applications will first require an LMO.

• Granted by Service Canada, it is ultimately a determination (or a “confirmation”) that the skills of the foreign worker are required in the Canadian labour market for the job position, not the candidate.

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Labour Market Opinions (cont’d)

• Specifically, Service Canada considers:

– Whether the employment of the foreign national will result in direct job creation or job retention for Canadian citizens or permanentresidents;

– Whether the employment of the foreign national will result in transfer of skills and knowledge for the benefit of Canadian citizens or permanent residents;

– Whether the employment of the foreign national will fill a labourshortage;

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Labour Market Opinions (cont’d)– Whether the terms of employment offered to the foreign national are 

consistent with the prevailing wage rate for the occupation and working conditions;

– Whether reasonable efforts were made to hire or train Canadian citizens or permanent residents; and

– Whether the employment of the foreign national will adversely affect the settlement of any labour dispute or the employment of any person involved in the dispute.

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Labour Market Opinions (cont’d)

• The employer makes the application for a specific job position, not the foreign worker.  

• Once the LMO Confirmation has been obtained, the foreign worker may then apply for a work permit with CIC at a Canadian Visa Office abroad or, if applicable, at a port of entry.

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The preceding presentation contains examples of the kinds of issues companies dealing with Immigration and Labor Laws could face. If you are faced with one of these issues, please retain professional assistance as each situation is unique. 

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Questions?Andrea Raso Amer Tony Schweitzer

604‐622‐5152 416‐863‐4407

andrea.rasoamer@fmc‐law.com tony.schweitzer@fmc‐law.com