BLG suggests new provisions to be included in your individual employment agreements and policies

Following the Supreme Court of Canada’s decisions issued on March 6, 2015 in the Pottercase and on July 25, 2014 in the Asphalte Desjardins case, it is prudent to consider updating employment agreements and policies to include the following provisions:

  1. A provision addressing the employer’s right to impose an administrative suspension with pay should be included in individual employment agreements and/or human resources policies.   
  2. Template letters of administrative suspension, notably pending investigation or the results of a medical evaluation, should be adjusted to include the reasons and the anticipated delays and process. From now on, it will be important to limit as much as possible any appearance of indefinite or unjustified administrative suspension, even with pay.   
  3. The provisions included in individual employment agreements and/or resignation notice policies should be adjusted to specifically provide for the employer’s right to exempt the employee from providing his or her work performance during the term of the resignation notice, while maintaining the employee’s pay.

Such provisions, if applicable, should obviously take into account the special circumstances of each organization and be adapted accordingly. 

Also, we wish to remind you that administrative suspensions must generally be imposed with pay, except in extraordinary circumstances and subject to any applicable provision contained in a collective agreement.