A fiduciary is a person who is required to act for the benefit of another person, the beneficiary, on all matters within the scope of their relationship. Fiduciary employees owe duties that go beyond the duty of fidelity owed by regular employees. Fiduciary employees owe their employers heightened duties, including a duty of loyalty, a duty of good faith, and a duty of honesty. They are expected to prioritize their employer’s best interests above their own. Further, fiduciary employees are obligated to avoid conflicts between their self-interest and their employer’s interests. Fiduciary duties may be found to continue after the termination of the employment relationship.

Who is a fiduciary employee?

All employees are not fiduciaries, as reflected in the Court’s decision in Canadian Industrial Distributors Inc. v. Dargue, 1994 CanLII 7319 (ON SC), where the Court stated, “it is clear that the generic relationship between employer and employee does not per se give rise to fiduciary responsibilities.” The law does not lightly impose a fiduciary duty on every employee or manager due to the demanding nature of the duties required of fiduciaries. Rather, determining whether an employee is a fiduciary requires a contextual analysis of the nature of the employee’s duties and the relationship between the employee and employer.

Employee Rights Archives - Page 2 of 6

When are Employees Considered Fiduciaries?

What is a fiduciary?

A fiduciary is a person who is required to act for the benefit of another person, the beneficiary, on all matters within the scope of their relationship. Fiduciary employees owe duties that go beyond the duty of fidelity owed by regular employees. Fiduciary employees o...

Piercing the Corporate Veil: How can I hold my employer accountable if they are a corporation?

If your employer has wronged or harmed you, you may wonder whether you can hold them accountable in a personal capacity to prevent them from hiding behind their corporation to avoid accountability. Generally, this is difficult to achieve due to the protection that incorporation provides those who ar...

Is a Verbal Resignation Binding?

If you have recently found yourself proclaiming “I quit” in the heat of the moment, only to cool off and consider that this might not be the right choice for you, you may be wondering, is a verbal resignation binding? If you are having second thoughts about resignation and you resigned verbally, it ...

What Can I Do If My Employer Rehires for My Position After a Layoff

Have you ever been laid off from your place of employment? If so, you’ll likely understand the feeling of uncertainty in what comes next and wondered what you can do about it. Layoffs are relatively common, and it is important to understand your rights and entitlements as an employee in the event of...

Can I Be Forced to Take Vacation in Week-Long Blocks

Nothing beats vacation days and although some people love taking their vacation time in larger blocks, others prefer to have their vacation spaced out into smaller chunks throughout the year. Though many employers will attempt to accommodate employees’ requests there are many reasons why an employer...

How To Win A Constructive Dismissal Case in Ontario

If you feel you have been constructively dismissed by your employer, you may have questions about what your next steps are and what you can do to protect your rights as an employee. Being terminated from your employment is an emotionally charged issue and is often incredibly stressful. When you are ...

What Happens When You Get Laid Off

If you have recently been laid off, you may have questions about what happens next. Layoffs are common, yet not every employee fully understands their rights and entitlements once they have been laid off. Depending on your employment situation, you may be entitled to compensation when you are laid o...

Do Non-Compete Agreements Hold Up?

When you first signed your contract of employment with your employer, you may not have felt that the non-compete clause you were asked to sign was of any importance. Fast-forward a few years and you are now leaving your place of employment. You have got big plans to start your own business, take on ...

Do Independent Contractors Have to Abide by Non-Compete Clauses?

Are you an independent contractor who is being asked to sign a non-compete clause? If so, you may be wondering whether this non-compete clause would be enforceable. The agreement between an employer and an independent contractor is unique and unlike a typical employer-employee relationship, as an in...

How Do Equal Opportunity Laws Protect Job Applicants in Canada?

Within Canada, any business that is regulated by the federal government has a legal obligation to abide by the Employment Equity Act. This means that these regulated businesses are required to provide equal opportunities for employment to Read More