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Sep 28, 2017

Major Win for Employees Terminated at CTS Manufacturing Facilities

On September 26, 2017, the Superior Court released a significant decision in what is known as the CTS Class Action. In its reasons, the Court awards fresh reasonable notice to 74 employees who were terminated by CTS in 2014-2015. This has been awarded because CTS failed, during most of the termination process, to inform the Ministry of Labour of the plant closure. The Court ruled, in the first major interpretation of key provincial standards legislative provisions, that CTS was obligated at the start of the closure process to notify the Ministry of the closure, triggering potential outplacement benefits for employees. Having failed to notify the Ministry, the Court ruled that CTS breached the legislation and, relatedly, the contracts with its employees, with the result that CTS is now compelled to pay employees pay in lieu of fresh reasonable notice of their termination. This decision is a major victory for working class people generally and for these former employees in particular. It is a reminder that employers must, even when shutting plants down, respect certain basic legal norms designed to protect and benefit employees at the most pivotal of times, the termination of their employment.

Related Practice Areas

Civil Litigation/Class Actions