Canadian HR Reporter

CANADIAN HR REPORTER September 4, 2017 FEATURES 23 Emplo y ment Law Today Canad a ian Canadian Employment Law Today is an indispensable tool in keeping managers, business owners, trade unions, HR professionals and law firms up-to-date on the latest developments in employment law. As a subscriber you will learn the strategies and techniques that enable businesses to devote more of their focus to productivity and profitability. Our bi-weekly newsletter will connect you with the most current employment law-related rulings in court, tribunals and other judicial bodies. Save valuable hours of research and spend more time using the information to improve procedures and decisions. COMPLY WITH THE LATEST EMPLOYMENT LEGISLATION Access a sample issue now at: bitly.com/CELT-FreePreview-16 Subscribe today for only $199 * Order No. 20612-17-68648 Save $100 PM40065782 Emplo y ment Law Today Canad ad a ian www.employmentlawtoday.com September 14, 2016 Wrongful dismissal damages — Bonus entitlement BY RONALD MINKEN FOR some workers, a bonus makes up a signifi cant portion of their remuneration. For others, a bonus is something that may or may not be provided by their employee at specifi c times of the year — such as Christ- mas, for example. Often, an employee who is dismissed without cause will ask whether her entitle- ment to wrongful dismissal damages will in- clude a component for lost bonuses. Compensation for wrongful dismissal can include an amount for a bonus which the employee would have been entitled to re- ceive during the notice period. In the absence of an employment agree- ment specifying to the contrary, the question is whether the bonus has become an essen- tial component of the employee's remunera- tion or whether it is essentially a gift — to be delivered at the employer's sole discretion. A recent decision of the Ontario Court of Appeal, Paquette v. TeraGo Networks Inc., dealt with this issue. When Trevor Paquette was fi red by Tera- Go Networks, the dismissed employee and his former employer could not agree on a severance package. Paquette brought a sum- mary judgment motion to determine the pe- riod of reasonable notice and damages. e motions judge awarded notice at 17 months and based damages on salary and benefi ts that Paquette would have earned during the 17-month notice period. e motions judge did not award damages for bonuses, because the employer's bonus plan required an em- ployee to be "actively employed" at the time the bonus was paid. Paquette appealed that decision on the issue of whether the motion's judge made a mistake in not including compensation for lost bonuses. e Ontario Court of Appeal allowed the appeal. e motion judge erred in focusing on the Nurse fi red for forcing care on resisting care home resident Intentions were good but nurse made a mistake forcing protesting resident to have a shower, resulting in injuries to resident BY JEFFREY R. SMITH AN ARBITRATOR has upheld the dismissal of a registered practical nurse at an Ontario long- term care home after a resident suff ered injuries after resisting care and the nurse failed to fi le an incident report. Chester Posada was a regular part-time reg- istered practical nurse (RPN) at Bendale Acres, a long-term care home operated by the City of Toronto. He was hired in September 2008 and worked in the behavioural response unit, a locked area housing cognitively impaired residents who could act out. On Aug. 20, 2014, Posada was working in the unit with three other staff members. One of the patients, an 86-year-old man referred to as TS, suff ered from dementia and several other affl ic- tions that required him to be on blood thinners. e blood thinners increased TS' susceptibility Intoxicated, dishonest -- and reinstated with full pay pg.3 Employe ignored sunset clause in collective agreement CREDIT: LIGHTHUNTER/SHUTTERSTOCK Getting ready or legalized marijuana pg. 4 Employers will have to treat employee use somewhat differently -- but still as an intoxicating substance ASK AN EXPERT pg. 2 Employee harassment outside work ACTIVE on page 7 » EMPLOYER on page 6 » with Stuart Rudner Start your subscription and receive: • 22 issues of Canadian Employment Law Today • Full access to Canadian Employment Law Today's website, www.employmentlawtoday.com, featuring a searchable archive of past articles • Free access to Canadian Employment Law Today's multi media centre - the home for employment law videos, webinars and blogs TAKE ADVANTAGE OF OUR SPECIAL INTRODUCTORY OFFER *Available to first-time subscribers only To order your subscription call 1.800.387.5164 or 416.609.3800 www.employmentlawtoday.com/subscribe PAYROLL Payroll cards in demand Prepaid option can save time, reduce fraud, boost employee satisfaction By Peter Read W hile most Canadians have bank accounts and can accept direct deposit, it's not always the pre- ferred choice of many employ- ees. Many contract workers, overseas workers and younger workers are looking for quicker, more flexible and transparent pay — and payroll cards (or pay- ment cards) can alleviate this pressure. Payroll cards can help businesses achieve 100 per cent electronic payroll, along with saving time and money, reducing fraud and risk, and boosting employee satisfaction. What is a payroll card? A payroll card, at its core, is a flex- ible electronic payment method that streamlines payment pro- cesses for businesses and improves payment options for all workers. Payroll cards are stored-value cards that work in a manner simi- lar to debit cards. They can be used anywhere that accepts debit cards, includ- ing ATM machines, retail point- of-sale and online, and they can be reloaded. "Employers using (our product) to pay their employees are seeing a massive reduction in payroll costs and happier employees," says Steve Barha, CEO of Instant Financial in Vancouver, a financial technology company that offers a prepaid Mastercard employers can use to pay staff. "is isn't surprising given the efficiency of the prepaid card as a funds movement vehicle. Instant customers are seeing reductions in employee turnover, theft and absenteeism, while seeing in- creases in employee engagement. As we know, happier, more en- gaged employees sell more and waste less. e full annualized value of the Instant program is measured in hundreds of dollars per employee." Typically, payroll providers of- fer a mobile app interface with immediate spending and balance information. Funds can hit an account more quickly than a direct de- posit (in some cases, right when a shift ends) with no fees to the consumer. Consumer spending sets the stage Payroll cards are one segment of the open-loop prepaid market, which was valued at $3.1 billion in 2015, according to the Canadian Prepaid Providers Organization (CPPO). is is a significant industry for a country with $1.6-trillion GDP and big banks that dominate fi- nancial services. While 99 per cent of Canadi- ans have a bank account, there is a growing interest, especially among younger people, to adopt alternative payment tools which they view as more convenient, according to a 2017 survey of 1,006 consumers by CPPO. irteen per cent of respondents are using their bank accounts less frequently, and 31 per cent do not want to have a credit card, found the survey. Eighty per cent of respondents said they do not like to carry a lot of cash, and 58 per cent are mak- ing fewer cash purchases than the year before. In addition, the average Canadi- an paid $216 in bank fees in 2015, and the typical consumer cannot avoid fees on their bank account without a minimum balance of $1,500 to $5,000, depending on the institution and the type of account, according to Statistics Canada. Canadian consumers are start- ing to adopt prepaid cards as a budgeting and spending account tool, as seen with the launch of a general spending account from Koho, a mobile-only suite of finan- cial services based in Vancouver. Prepaid reduces fraud, guar- antees funds, eliminates transac- tion friction, sidesteps debt, and frees buyers and sellers from the restrictions of traditional financial institution relationships. Millennials lead the way With a large millennial work- ing population redefining how employers hire, motivate and retain employees, payroll is one of the most impacted business operations. For many employees, espe- cially those earning an hourly wage, payroll cards can be a valuable financial tool to manage their money and get paid more frequently. Although Canada is an elec- tronic payments leader, it has slow rates of settlement on finan- cial transactions. It is impossible to pay workers at the end of their WORK > pg. 25

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