Lexpert Magazine

Jan/Feb 2017

Lexpert magazine features articles and columns on developments in legal practice management, deals and lawsuits of interest in Canada, the law and business issues of interest to legal professionals and businesses that purchase legal services.

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52 LEXPERT MAGAZINE | JANUARY/FEBRUARY 2017 | THE MODERN WORKPLACE | Is employment law keeping up? In gener- al, employment law in Canada is governed by the provinces. Ask most employee-side lawyers whether the provincial statutes re- flect the changing reality and most would say no. ey suggest, rather, that the mod- ern workplace has created an underbelly of so-called "vulnerable workers" — oen forced by ethnicity, race, gender, ability, age or immigration status to take tempo- rary work that gives them no security, no say over their hours and few or no benefits. ey argue that this type of worker is not protected nearly well enough by the law. Many management-side employment lawyers would disagree, arguing that the laws that have been in place for decades are reasonable and principled, offering a bal- ance of freedoms and protections. Barbara Johnston, head of the Calgary labour and employment group at Dentons Canada LLP, for example, says that in her view "ro- bust employment policies" combined with common law make overhauling the legisla- tion unnecessary. Robert Sider, a management-side labour and employment lawyer at Lawson Lundell LLP in Vancouver — who is also called in Alberta — is not so sure. He says it's fair to say that, aside from targeted efforts here and there, employment laws across Canada are not substantially different from the time when people used a quill and ink to work. And all the changes that an iPhone or a laptop imply? "e legislation's not keeping up with the reality." One province, however, is trying to do something about it: Ontario. Last sum- mer, as part of its Changing Workplaces Review, the province's Ministry of Labour released an interim report on how it could modernize the workplace. e report ommend changes to the Employment Stan- dards Act, which covers non-unionized employee rights, and the Labour Relations Act, which governs unionized employees — the first such review in over a generation. In late July, special advisors Michael Mitchell and John Murray — aer 12 days of hearings and 300 written submissions — issued an interim review. While only the final report (which is expected in the new year) will contain recommendations, some of the suggestions and observations in the initial review are already causing some business people and their legal coun- sel conniptions. Acknowledging in the introduction that the existing legal framework was designed largely for an economy "dominated by large fixed-location worksites, where the work was male-dominated and blue-collar, espe- cially in manufacturing," the report notes that today's landscape is vastly different. Technology has changed everything. Computers and the internet paved the way for just-in-time delivery systems, robot- ics, 3-D manufacturing, movie streaming, bar-code scanning systems and the new so called "sharing economy," manifested by such companies as Uber and Airbnb. While Ontario's once mighty manufactur- ing sector has been severely weakened, the service sector has grown — along with the kind of employment that, the report states, is the sweet spot for low-wage, temporary jobs, "many of them unstable with little or no security, and mostly without benefits." e advisors said aer the first round of consultations that they heard again and again this "significant and growing" part of the workforce includes "a disproportionate number of women, racial and ethnic min- orities, immigrants and youth" working mainly in areas such as food services, home care, child care and custodial services, as well as agriculture and temp agencies. e review notes there is a greater degree of "social isolation" in this vulnerable popula- tion and "a disproportionately high level of mental health issues … as well as a deteri- oration in their overall physical health." So what does the province have in mind? No one will know for sure until recom- mendations are released, but observations like this have management-side lawyers concerned about what the advisors are go- ing to recommend — and what Ontario's makes a number of provocative sugges- tions, and uses politically charged language to describe inequities and social issues that, until now, had been considered part and parcel with contract work. Formal recommendations are not yet on the table, but even the thought of expand- ing entitlements for non-employees has sounded the alarms for businesses — not only in Ontario, but across the country. Be- cause if sweeping new labour laws do take hold in Canada's most populous province, how long can it really be before other legis- latures start to take a look? INEQUITY MANDATE Ontario's decision to tackle its antiquated employment regime, which dates back to the mid-1880s (with occasional revisions) can be traced to July 3, 2014, when then Ontario Lieutenant Governor David On- ley rose to his feet to make the new Liberal government's speech from the throne. Onley said a changing economy means a changing workplace, and announced that the new government would be consult- ing with Ontarians "in the context of our labour and employment law regime." Any- one who assumed this meant a mere tweak- ing was disabused of that notion when, in her mandate letter to Labour Minister Kevin Flynn, Premier Kathleen Wynne wrote that "leading a review of Ontario's system of employment and labour stan- dards" would be his top priority. She instructed Flynn to consider reforms that reflect the realities of the modern economy, "such as the rise of non-standard employment and the reduction in the prev- alence of employer benefits and training." Two independent special advisors were appointed to lead consultations and to rec- KARINE DION NELLIGAN O'BRIEN PAYNE LLP "IT WOULD BE hard to argue that a company with 200 contract workers doesn't have employees. … [When these contractors are let go], they have no income, and they have no job. They are the least financially equipped to mount a legal challenge. The system's unfair."

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