Does An Employer Have The Right To Cancel A Paid Break?
Tim Hortons is in the spotlight and the hot-seat following the recent change to Ontario's minimum wage. It seems that certain Tim Hortons franchise operators are advising their employees that, due to the increase in wages, paid breaks are cancelled. Certain employers are also advising employees that incentives, such as paid days off, are cancelled and that employees will have to contribute towards their employer sponsored benefit program.
These actions, raise the question: Are the employers acting legally?
At law, an employer does not have the right to make unilateral fundamental changes to the terms of the employment. Doing so is a repudiation of the contract and makes the employer liable for breach of contract or for terminating the employer/employee relationship. The specific consequences of the termination depend on a number of factors including the length of the employment and the age of the employee.
If an employer attempts to change the terms of the contract, the employee has one of three options. S/he can:
accept the change to the terms of employment either directly or indirectly by acquiesing and continuing to perform his or her duties;
reject the change to the employment and sue for wrongful dismissal; or
communicate clearly to the employer that the employee is rejecting the new term. The employer then has the choice of whether to give the employee notice of termination and offer employment on the new, arguably less favorable terms.
If the employee and employer opt for option #3 above, the employer must ensure that it gives the appropriate notice period to the employee. Failure to do so could entitle the employee to severance pay.
The Lesson for Employers: We recommend giving actual termination notice before changing fundamental terms to the employment agreement to avoid any uncertainly or misunderstanding. Consult with an experienced employment law lawyer about the appropriate notice period for employees.
The Lesson for Employees: As set out above, there are three options available if your employer changes the terms of your employment. Those options and their consequences should be considered before either accepting the change or communicating to your employer that you reject the change.
The content and the opinions expressed here is informational purposes only and does not constitute legal or professional advice. Nor does reading or commenting on it create a lawyer/client relationship with the author. I encourage you to contact me directly at adrianlawoffice@gmail.com if you have specific legal questions or concerns.
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