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ARTICLE · 11 SEPTEMBER 2013

Be Careful What You Promise

Norton Rose Fulbright Canada LLP
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A recent Court decision from Ontario emphasizes the need for employers to be careful when promising compensation and benefits to employees.

CanadaEmployment and HR
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A recent Court decision from Ontario emphasizes the need for employers to be careful when promising compensation and benefits to employees.  The case was a class action law suit brought by over 3000 retired employees of General Motors of Canada Ltd. challenging the decision of GM to reduce their post-retirement benefits.  The principles of the decision apply to any compensation provided by an employer to existing or former employees. 

In December 2007 GM announced various reductions in its post-retirement benefits to take effect over 3 years.  The changes were stated to be a result of the financial pressures that GM was facing during the economic slowdown.  The group of retired salaried employees challenged this decision. 

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