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Shhhh! It Costs to Be a Tattle-tale

Daniel A. Lublin is partner at Whitten & Lublin, employment and labour lawyers and he is the author of the Law of Contractors.  Reach him at Dan@canadaemploymentlawyer.com

When there’s been a settlement agreement between an employer and employee, there’s often a confidentiality clause inserted into the agreement.  Confidentiality clauses generally restrict the employer or employee from discussing the decision reached or terms agreed to by the parties in resolving their dispute. These are so because confidentiality is thought to be vital to resolving a dispute.

An arbitration case this summer (2013 CanLII 53696 (ON LA)) illustrated that these confidentiality clauses are taken seriously and if breached, can result in severe consequences for the breaching party.

Constable McRae, a police officer with the Barrie Police Services Board was represented by a union who entered into a settlement agreement with his employer. The agreement had a clear provision: ‘This agreement is stri...

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