Canadian Employment Law: Director Liability for Unpaid Wages – Significant Issues for 2015 and Beyond
Typically in Canada, corporations are treated as separate legal entities. Hence, individuals acting on behalf of a corporation, such as directors, generally are protected from personal liability for wrongful acts committed by the corporation. Nonetheless, the Canada Business Corporations Act (CBCA)¸ the Ontario Business Corporations Act (OBCA), and the Ontario Employment Standards Act, 2000 (ESA), specifically provide that directors can be held liable for up to six months' unpaid wages if certain pre-conditions are met.
However, finding a director personally liable has recently been extended by the Ontario Superior Court in El Ashiri v Pembroke Residence Ltd. where the judge used the oppression remedy under corporate legislation to hold a director liable for unpaid wages.
Corporations need to be aware of the changes to ensure compliance with the law.
In this two hour, CLE course, The Knowledge Group will provide an in-depth analysis of the issue surrounding personal Liability of Directors for Un-paid Wages. Speakers will discuss applicable corporate and employment legislation and the recent court decision in El Ashiri v. Pembroke Residence Ltd.
Key topics include:
- Directors Personal Liability for Unpaid Wages – An Update
- Scope and Limitations of Directors Personal Liability for Unpaid Wages
- Canada Business Corporations Act (CBCA)
- Ontario Business Corporations Act (OBCA)
- Ontario Employment Standards Act (ESA)
- Oppression Remedy – Overview
- Court Decision to El Ashiri v. Pembroke Residence Ltd. Case
- Up-to-the minute Regulatory Developments
- Personal vs. Corporate liability
- Statutory Provisions
- Ontario Business Corporations Act s. 131
- Canada Business Corporations Act s. 119
- Types of Amounts that may be owing
- Wages, vacation pay, holiday pay vs. termination pay or pay in lieu of notice
- Oppression Remedy
- Potential personal exposure for directors
- Recent case law
Ursel Phillips Fellows Hopkinson
- What are the policy reasons for director liability for employee compensation in Canada?
- What are the legislative sources of director liability for unpaid salary?
- What courses of action are available to employees against directors?
- What are the considerations for employee/plaintiff counsel in determining whether to pursue legal action against a director for unpaid compensation?
- What are the potential remedies that employees can get from directors?
Who Should Attend:
- Employment and Labor Law Attorneys
- Attorneys, Practice Area: Litigation
- Labor Counsel
- Litigation Officers
- Legal Consultants
- Senior Management and Board Members
- Executives and Administrators
- General Counsel
- Other Related/Interested Professionals
Justin is a Partner of Sorbara, Schumacher, McCann LLP located in Waterloo, Ontario.
Justin’s practice includes all aspects of civil and commercial litigation, with a particular focus on employment matters. Justin provides employment advice to both employees and employers on all aspects of the employment relationship including the drafting and negotiation of employment contracts, preparing and advising on employment policies and manuals, providing guidance on discipline issues, workplace safety and harassment, termination with or without cause, constructive dismissal, human rights, employment standards, and restrictive covenants.
Justin has protected his clients’ legal interests before every level of court in Ontario and before a great many boards and tribunals, including regular appearances before the Human Rights Tribunal of Ontario and the Ministry of Labour. His clients know him as a pragmatic and effective advocate.
For 2015 & 2016, Justin was selected by his peers for inclusion in The Best Lawyers in Canada in the fields of Labour and Employment Law and Corporate and Commercial Litigation.
SorbaraLaw is one of the largest and most respected full service regional law firms in Ontario, with thirty-two lawyers in offices in Waterloo and Guelph.
Justin is a Partner of Sorbara, Schumacher, McCann LLP located in Waterloo, Ontario. Justin’s practice includes all aspects of civil …
Andrea Wobick practices employment and labour law, professional discipline and civil litigation for individual employees, trade unions, and associations with Ursel Philips Fellows Hopkinson LLP. Andrea provides representation on matters involving employment contracts, severance packages, wrongful dismissals, professional discipline, human rights issues, pension issues and harassment and bullying in the workplace. She regularly appears before professional discipline bodies, human rights tribunals, labour arbitrators, a variety of other administrative tribunals and the courts.
Andrea has been a featured speaker for the Ontario Bar Association, the American Bar Association, Insight, Canadian Association of Labour Lawyers (CALL) and Lancaster House. She is currently the Chair of the Ontario Bar Association’s Labour and Employment Section. She is also a member of the Advocate’s Society and CALL.
Andrea Wobick practices employment and labour law, professional discipline and civil litigation for individual employees, trade unions, and associations with …
Print and review course materials
Method of Presentation:
On-demand Webcast (CLE)
NASBA Field of Study:
NY Category of CLE Credit:
Areas of Professional Practice
2.0 CPE (Not eligible for QAS (On-demand) CPE credits)
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About Sorbara Law
At SorbaraLaw, our goal is to achieve the best possible outcome in the shortest possible time and at the least possible cost for every client and for every legal matter with which we are entrusted.
SorbaraLaw is one of the largest and most respected full service regional law firms in Ontario, with thirty-two lawyers in offices in Waterloo and Guelph. Our diverse team of skilled lawyers allows us to be responsive to our clients’ constantly changing needs. Our clients are individuals, businesses, institutions, and governmental bodies, located across Ontario and around the world. When our clients require legal expertise anywhere in the province, SorbaraLaw is there for them. Our firm’s reach extends beyond Canada as SorbaraLaw is regularly called upon to assist with the Canadian interests of clients in foreign jurisdictions including The United States, Eastern and Western Europe, China and Australia.
SorbaraLaw is recognized in The Best Lawyers in Canada® 2015 and The Best Lawyers in Canada® 2016 as the top listed firm in Waterloo for Corporate and Commercial Litigation. Lawyers in our firm are listed in The Best Lawyers in Canada 2015 and The Best Lawyers in Canada 2015 under the categories of Corporate and Commercial Litigation, Labour and Employment Law, and Family Law.
SorbaraLaw was also recently short-listed by Canadian Law Magazine as one of the top ten full service regional law firms in Ontario.
About Ursel Phillips Fellows Hopkinson
Ursel Phillips Fellows Hopkinson LLP is a Toronto law firm specializing in labour and employment law. The firm’s lawyers provide employees with respect to all aspects of the work relationship, including labour relations litigation, human rights, pension and employment benefits, health and safety, workers’ compensation, professional discipline, criminal defense, civil litigation including appellate work, Charter of Rights and public interest advocacy, and class actions.