Requires payment of annual bonus to employees

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1. An employer wants to remove a term in the contract of two employees that requires payment of an annual bonus to the employees. Employee A, concerned that refusing the employer's request will have negative ramifications for his job security, agrees to the change. Employee B refuses the modification, saying that he likes the bonus and does not want to give it up. The contract of both employees permits the employer to terminate the contract by giving three months' notice. Explain how the employer can modify the contract in both scenarios so that the modification is legally enforceable.

2. If an employment contract term specifies that the contract operates from January 1, 2015 to December 31, 2015, must the employer provide notice of termination to terminate the contract?

3. On what basis did the court refuse to enforce the fixed-term contract clause in Ceccol v. Ontario Gymnastic Federation?

4. Explain the tests applied by the courts when considering the following two arguments for non-enforceability of a notice of termination clause: (1) unconscionable contract term and (2) the changed substratum doctrine.

5. What three questions do the courts consider when dealing with constructive dismissal lawsuits based on a breach of an essential term?

6. Describe the three options available to an employee confronted with an employer who commits a fundamental breach of the employment contract.

7. For several months now, Lisa has experienced sexual harassment by her supervisor. The supervisor constantly makes jokes about Lisa's body and touches her on the shoulder and back and invites her for drinks and to his apartment after work. She has asked him to stop talking to her and she has reported her concerns to the human resources manager, but no steps have been taken to ensure the supervisor's behaviour changes. Lisa is fed up and suffering from anxiety and has decided she can no longer come to work. She wants to move on and find another job. Lisa comes to you for advice. Explain whether Lisa could make a strong constructive dismissal argument.

Reference no: EM133178123

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