Can an employment contract in Ontario legally prohibit someone from suing for wrongful dismissal? Can your employer require you to “arbitrate” your case rather than allowing you to use the public court system?
In Irwin v. Protiviti, 2022 ONCA 533, Ontario’s top court held that arbitration clauses in employment agreements are not automatically “illegal” and that questions about any particular arbitration provision are to presumptively be resolved by an arbitrator, not the courts.
Will an arbitration clause in independent contractor agreement always be found to be illegal, if, notwithstanding that to which the parties ostensibly agreed, the worker can later allege that he is, in fact, an “employee”?
A cursory reading of the Court of Appeal for Ontario’s decision in Heller v. Uber Technologies Inc., 2019 ONCA 1 might lead those who do not practice in the area of employment law to conclude that the answer is “yes.”
I might not be so sure.
Can a company, which ostensibly deems all of its workers to be “independent contractors”, require those workers to arbitrate their issues, including the issue of whether or not they are, in fact, “employees”? Or, is such an agreement an attempt to contract out of the protections afforded to employees by virtue of the Employment Standards Act, 2000? In addition to, or in the alternative to, such a question, is such a clause “unconscionable”?
In the first decision issued by the Court of Appeal for Ontario in 2019, Heller v. Uber Technologies Inc., 2019 ONCA 1, Ontario’s top court found that: (a) Uber’s arbitration clause amounts to an illegal contracting out of an employment standard; and (b) such clause is also unconscionable at common law.
Why does one think this ride isn’t over yet?
