New Developments On The Issue Of Clauses Limiting The Transfer Of Tasks

It is already well established in the case law that Article 45 of the Labour Code is only applicable within Québec and has no extra-territorial reach. As such, an employer may sell, assign or transfer either part or all of its operations to another province without affecting the transfer of the certification or of the collective agreement, as the case may be.

However, can the provisions of a collective agreement limit an employer's right to transfer work performed in an establishment located in Québec to one of its other establishments located outside the province?

This issue was considered by the Superior Court of Québec in Parmalat Canada v. Tremblay,¹ in the context of a review of an arbitration award.