EMPLOYMENT & LABOUR LAW

In Canada, regulation of labour and employment comes under federal or provincial jurisdiction, depending on the industry.  For provincially-regulated employment within the province of British Columbia (“BC”), there is a distinction drawn between unionized and non-unionized employment.  In unionized employment, the BC Labour Relations Board deals with the granting of collective bargaining rights, negotiation of collective agreements, strikes, and lockouts.  Disputes concerning the violation, application, or interpretation of collective agreements will be determined by a private arbitrator through an arbitration process.  In non-union situations, disputes over basic (minimum) employment standards are handled by the Employment Standards Tribunal.  There is little right of appeal through the Courts from these tribunal decisions except in cases of serious breaches of law or natural justice.  Disputes over the firing of a long-service or senior non-union employee are usually taken to the Supreme Court of BC, and then, upon application, to the BC Court of Appeal.

The main sources of law include legislation, case law (from courts and tribunals), and collective bargaining agreements.  Federal legislation includes the Canada Labour Code.  The Province of BC has enacted both the Employment Standards Act to provide “minimum standards” upon which non-unionized contracts of employment are based, and the Labour Relations Code to govern the unionized sector.

If the employee is an officer, director or very senior employee, they are bound by a fiduciary duty to act solely in the employer's interest at common law.  “Mere” employees do not have the same duties.  In all cases, it is advisable to have clauses in the employment contract dealing with confidentiality and protection of the employer’s proprietary interests.

Although inventions created by employees while working for an employer become the property of the employer, these matters are largely within the parties’ right to contract.  Mere employees (employees who are not executives or very senior) have limited responsibilities and accountability relating to confidentiality and non-solicitation.  It is always best to have all of these matters covered in the contract of employment.