First published on Thursday, March 20, 2025
Last updated on Thursday, March 20, 2025
Welcome to HR Heartbeat, where we take a look at the week’s most pressing HR and employment law stories. With over a decade of experience working within the HR and employment law industry, I give my opinion on current trends impacting your business, as well as my own personal commentary on all things HR and legal.
Avoid contract confusion: lessons from a recent Ontario court case
I recently came across an Ontario court case that shows unclear dispute resolution clauses may be more trouble than they’re worth—especially for employers who work with independent contractors.
In this instance, an independent contractor believed their contract permitted them to contest their termination because they had a dispute resolution clause. But the Ontario Divisional Court ruled otherwise. The dispute resolution clause did not clearly state that disputes had to be resolved before termination. This allowed the employer to legally end the contract with 30 days' notice.
My advice here? Clarity is Z must happen before termination, make sure it’s clearly written in the contract. Define terms, outline the dispute process, and ensure employees or contractors fully understand their rights.
The wrong wording can lead to costly legal battles which is why I always say it’s crucial to review your contracts carefully!
U.S. Tariffs and the workforce challenges they may bring
If you’ve been paying any attention to the news, U.S. tariffs are all anyone can talk about. With already imposed tariffs on steel and aluminum and potential tariffs on lumber, you undoubtedly have some concerns as a Canadian business owner.
Here are a few ways I think businesses affected may need to adjust their workforce management to maintain operations:
Assessing the federal Work Share Program instead of conducting layoffs. This program allows employers to reduce employee hours while employees receive Employment Insurance (EI) benefits to supplement their income. It provides a temporary solution to keep employees on payroll while adjusting to economic challenges.
Consider reducing pay or changing job duties to cut costs. However, significant changes, such as a pay cut of 10 percent or more, could lead to constructive dismissal claims. To mitigate this, carefully review employment contracts to determine how much flexibility you have to adjust job duties.
If you absolutely have to lay off staff, then it’s best to provide adequate termination notice in line with provincial minimums and the employee’s contract terms. And remember, your selection criteria for layoffs should be bias-free and not violate protected characteristics under human rights laws.
As always, make sure you seek legal or HR advice before making any workforce changes so you stay compliant with employment laws and avoid costly disputes.
Saying goodbye to Hudson’s Bay—compliantly
North America’s oldest retailer is shutting down. It's sad to lose a retail giant with nearly 9,000 jobs at risk across multiple locations and supply chains.
This is a difficult time for all involved, and Hudson’s Bay Company (HBC) needs to prioritize workers’ rights as it navigates financial difficulties.
In my experience, clear communication, offering fair severance, and job security throughout the liquidation process are a few things employers can do to ensure a fair transition period.
Workers deserve full transparency. So another thing is to avoid making vague promises where possible to avoid further confusion. This is of course about a lot more than legal obligations; it’s about fairness and respect for the employees who helped build the company.
As HBC undergoes these proceedings, I would of course recommend that the company acts in-line with it’s responsibility and shows compassion towards the livelihoods of thousands of workers and their families.
And that’s a wrap from me. Tune in next time for my take on the latest headlines and employment law stories, helping keep your business ahead!
