A guide to fair and legal promotions in Ontario

Promotions can be a strategic tool for employee motivation, retention, and business growth, providing employees with opportunities for advancement and greater job satisfaction. However, Ontario employers must navigate a variety of legal obligations to ensure their promotion process is fair and legally sound.

A well-defined promotion policy can help employers avoid legal pitfalls and ensure fairness in the promotion process. Such a policy should outline the following:

Eligibility criteria: Clearly define the qualifications, experience, and performance standards required for promotion. This might include specific educational requirements, years of experience, or performance metrics. For example, a promotion policy might state that candidates for a management position must have a bachelor's degree, at least five years of experience in the relevant field, and a proven track record of successful project management.

Promotion process: Specify the steps involved in the promotion process, including the application, review, and selection stages. This could involve a formal application process, interviews, assessments, or reference checks. For example, a promotion policy might outline a three-step process: employees submit applications and resumes; a selection committee reviews applications and conducts interviews; and the hiring manager makes the final decision.

Appeal process: Establish a mechanism for employees to challenge promotion decisions, such as an internal review process or requirement for external mediation. For example, a promotion policy might allow employees to appeal a promotion decision to a senior manager or human resources representative.

Anti-discrimination provisions: Reinforce the employer's commitment to non-discrimination in the promotion process. This should explicitly state that promotions will be based on merit and not influenced by factors such as race, gender, age, religion, disability, or other protected grounds under the Ontario Human Rights Code. For example, a promotion policy might state that all candidates will be evaluated based on their qualifications and experience, regardless of race, gender, age, or other protected characteristics.

Legal considerations for promotions

Ontario employers must be mindful of the following legal considerations when making promotion decisions:

Human Rights Code: As referenced above, the Ontario Human Rights Code prohibits discrimination based on protected grounds, including race, ancestry, place of origin, colour, ethnic origin, citizenship, creed, sex, sexual orientation, gender identity, gender expression, disability, age, marital status, family status, and genetic information. Employers must ensure that their promotion policies and practices are free from discrimination. This means that promotion decisions must be based on objective criteria and cannot be influenced by any protected grounds.  

For example, an employer cannot deny a promotion to a qualified employee based on stereotypes or assumptions about their abilities related to age, gender, or disability. Additionally, employers must take reasonable steps to accommodate the needs of employees with disabilities to ensure equal opportunities for promotion.

Constructive dismissal: In some circumstances, an employee who quits after wrongfully being denied a promotion may have a claim for constructive dismissal. If the promotion denial was effectively a demotion (for example, if a promised promotion or additional compensation does not occur within a reasonable timeframe), a court may consider it a unilateral breach of the employment agreement by the employer.

Best practices for promotions

To minimize legal risks and ensure fairness in the promotion process, employers should consider the following best practices:

Objective criteria: Use objective criteria, such as performance evaluations, skills assessments, and educational qualifications, to evaluate candidates for promotion. This helps ensure that promotions are based on merit, not subjective factors or personal biases. For example, employers should use standardized performance evaluations and skills assessments to assess candidates' qualifications instead of relying solely on personal impressions or recommendations from colleagues. This helps to ensure that the promotion process is fair and transparent and that all candidates are evaluated equally. Additionally, using objective criteria can help to reduce the risk of discrimination and other legal challenges.

Transparency: Communicate promotion criteria, processes, and relevant policies or procedures clearly and openly to all employees. This helps create a fair and transparent environment, reduces the likelihood of misunderstandings or disputes, and fosters employee trust and confidence. By providing employees with clear information about the promotion process, employers can help to ensure that everyone understands the expectations and requirements and that all candidates have an equal opportunity to compete for promotions. Additionally, transparency can help to prevent discrimination and other forms of unfair treatment by ensuring that all candidates are treated equally and that the promotion process is based on objective criteria.

Fairness: Treat all candidates fairly and equitably throughout the promotion process. This includes providing all candidates with equal opportunities to demonstrate their qualifications, avoiding any discriminatory practices, and ensuring that the selection process is free from bias. For example, employers should ensure that the same people interview all candidates, that interviews are conducted consistently, and that all candidates are given the same amount of time to answer questions. Additionally, employers should take steps to prevent unconscious bias from influencing their decision-making. This might involve providing managers and supervisors with training on unconscious bias or using structured interview techniques that can help reduce the impact of personal biases.

Documentation: Maintain meticulous records of the promotion process, including applications, interviews, performance evaluations, and selection decisions. This not only helps to defend against potential legal claims but also provides a valuable historical record of the promotion process. By documenting the reasons for the promotion decision, employers can demonstrate that the process was fair, transparent, and based on objective criteria. This can be particularly important in the event of a legal challenge or a dispute with an unsuccessful candidate. Additionally, detailed documentation can help identify areas for improvement in the promotion process and ensure that future promotions are fairer and more equitable.

Training: Provide comprehensive training to managers and supervisors on anti-discrimination and fair employment practices. This ensures they understand their legal obligations and can make informed decisions about promotions without inadvertently engaging in discriminatory or unfair practices. The training should cover topics such as the Ontario Human Rights Code, the Employment Standards Act, and other relevant legislation, as well as best practices for conducting fair and equitable promotions. Additionally, the training should address unconscious bias and how to avoid its influence on decision-making. By providing managers and supervisors with this training, employers can help create a more inclusive and equitable workplace and reduce the risk of legal challenges.

A robust promotion strategy helps businesses recognize and retain their top-performing talent. By understanding and implementing fair and equitable promotion practices, Ontario employers can mitigate potential legal risks while boosting morale and fostering company loyalty.

Paulette Haynes is the founder of Haynes Law Firm, a boutique employment law firm in Toronto.