Arbitration Awards — Ontario Employment Law
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About Arbitration Awards
In Ontario employment and labour law, an arbitration award is the final, legally binding written decision rendered by an arbitrator or arbitration board after a workplace dispute has been heard. While the arbitration process serves as a private alternative to the public court system, the resulting award carries the same legal weight as a judge's ruling. This topic focuses specifically on the enforcement, finality, and limited avenues for challenging these decisions once they are issued.
In unionized workplaces governed by Ontario's Labour Relations Act, 1995 (LRA), grievance arbitration awards dictate outcomes regarding collective agreement interpretations, unjust dismissals, and union dues. Once an arbitrator renders an award, the LRA strictly mandates that it is "final and binding" on the employer, the union, and the affected employees. A unique feature of Ontario labour law is that these obligations can even attach to the purchaser of a unionized business under the LRA's successor rights provisions, meaning a new owner may find themselves liable for a prior owner's unpaid arbitration awards.
For non-unionized employees—usually senior executives or workers with mandatory arbitration clauses in their employment contracts—arbitration awards are governed by the Arbitration Act, 1991. Like labour awards, these decisions are designed to be conclusive.
If a party ignores an arbitration award—for example, an employer refusing to pay a mandated severance amount or failing to remit unpaid health premiums—the successful party does not need to start a new trial. Instead, the award can be filed directly with the Ontario Superior Court of Justice. Once filed, it acts as an enforceable court order, allowing for mechanisms like asset seizure, wage garnishment, or even contempt of court proceedings against non-compliant corporate officers.
Overturning an arbitration award is extremely difficult. Disagreeing with the outcome is not enough. Parties must seek a "judicial review" through the Divisional Court, where judges apply a high level of deference to the arbitrator. Unless the decision is deemed legally "unreasonable" or there was a severe breach of procedural fairness (natural justice), the court will not intervene. Because enforcing complex orders, establishing legal standing, or navigating the rigid grounds for judicial review involves highly specialized procedural thresholds, assessing the viability of challenging or enforcing an award makes targeted consultation with a qualified legal professional crucial.
Frequently Asked Questions
What happens if my employer refuses to pay the money ordered in an arbitration award?
If an employer ignores a monetary arbitration award, you or your union can file a certified copy of the decision with the Ontario Superior Court of Justice. Once registered, it inherits the same enforceable status as a court judgment, allowing for collection actions like garnishment or property liens.
Can I appeal an arbitrator's decision if I think they got the facts wrong?
Generally, no. In Ontario, arbitration awards are legally binding and cannot be appealed simply because you disagree with the factual findings. You can only challenge the decision through a process called "judicial review" if you can prove the arbitrator made a fundamentally unreasonable legal error or denied you a fair hearing.
Is there a deadline to challenge an arbitration award in Ontario?
Yes. If an authorized party wishes to seek judicial review of an Ontario arbitration award, the application must normally be brought within 30 days of the decision being issued. Missing this strict limitation period typically strips you of any right to challenge the award.
If my company is bought out, does the new owner have to honour past union arbitration awards?
Yes, under Section 55 of the Labour Relations Act, a purchaser who acquires a unionized business generally inherits the seller’s collective agreement obligations. This typically makes the new employer legally liable for complying with past, unresolved arbitration awards issued against the previous owner.
As an individual union member, can I personally take an arbitration award to court for judicial review?
Usually, individual union members do not have the legal "standing" to launch a judicial review on their own because the union legally owns the grievance process. You generally must rely on your union to challenge the award, unless the dispute directly concerns a breach of the union's duty of fair representation.
When should I consult a lawyer after receiving an unfavorable arbitration award?
You should speak to a customized labour or employment litigator immediately upon receiving the decision if you suspect severe procedural bias or legal errors, as the 30-day window to file for judicial review requires rapid, specialized legal analysis of the arbitrator's administrative reasoning.
Common Scenarios
- A union successfully secures an arbitration award ordering a company to reinstate a wrongfully dismissed worker, but the employer stubbornly refuses to allow the employee back on site, leading the union to seek a court order enforcing the reinstatement under threat of contempt.
- A senior executive with a confidential arbitration clause in their contract receives an award confirming their right to an unpaid bonus and registers the award with the Superior Court to legally pressure the non-paying company.
- A university professor denied tenure challenges an arbitration board's award, bringing a judicial review application arguing the board interpreted the collective agreement's evaluation criteria in a completely unreasonable manner that defied logic.
- A manufacturing plant is sold midway through an enforcement battle, and the union targets the new corporate purchaser to collect thousands in unpaid health and dental premiums dictated by a previous arbitration award.
What You Should Know
- Understand the deferential standard of review: before spending money trying to overturn an award in court, recognize that judges will not re-weigh the evidence and will only intervene if the arbitrator's conclusion is fundamentally flawed or irrational.
- Act immediately on the 30-day timeline if you intend to pursue a judicial review of an award; courts are incredibly reluctant to grant time extensions in labour relations contexts.
- If you face an uncooperative opposing party after winning an arbitration, do not waste time arguing; formally file the award with the Ontario Superior Court of Justice to unlock robust enforcement tools.
- If you are reviewing an award as a unionized employee facing termination, verify whether the union intends to challenge the decision on your behalf, as you likely lack the independent legal standing to do so yourself.
- Due to the specialized nature of administrative law and the difficulty of proving an award is 'unreasonable,' engaging a lawyer who focuses specifically on appellate or judicial review proceedings is a vital strategic step.
Featured Cases
Revera Retirement v. T.A.
2010 ONSC 3041 (CanLII) · 2010-06-08Judicial Review of Interest Arbitration Award
This is a judicial review of an interest arbitration award under the Hospital Labour Disputes Arbitration Act. The employer challenged the arbitration board's decision on the grounds of procedural fairness and jurisdiction, arguing the board relied on information not presented by the parties. The court addressed the content of the duty of fairness in interest arbitration.
Ottawa Hospital v. Ontario Public Service Employees Union, Local 464
2009 CanLII 9389 (ON SCDC) · 2009-02-23This is a judicial review of a labour arbitration award concerning a collective agreement between the Ottawa Hospital and the Ontario Public Service Employees Union. The court upheld the arbitrator's decision that a re-qualification provision for short-term disability benefits discriminated against employees with partial disabilities, applying the reasonableness standard of review.
Re Windsor Western Hospital Centre Inc. and M. et al.
1986 CanLII 2635 (ON SC) · 1986-08-05Labour Relations Act: OLRB Jurisdiction and Union Duty of Representation
A labour and employment case involving disputes over the Ontario Labour Relations Board's (OLRB) jurisdiction to order a recommencement of arbitration after a final and binding award, as well as allegations of union breach of duty of fair representation and employer interference with union rights.
Re United Brotherhood of Carpenters & Joiners of America, Local 3054 and Cassin-Remco Ltd. et al.
1979 CanLII 2013 (ON SC) · 1979-11-06Successor Employer Liability: Arbitration Awards
This is a procedural and statutory interpretation ruling concerning successor employer liability under the Labour Relations Act. The court determined whether a purchaser of a business is bound by the seller's collective agreement, including pre-sale arbitration awards, and whether execution rules permit enforcing such awards against the successor employer.
Re International Union, United Automobile, Aerospace & Agricultural Implement Workers of America et al. and Massey-Ferguson Industries Ltd. et al.
1979 CanLII 1802 (ON SC) · 1979-02-01Interpretation of 'Must' in Collective Agreement: Judicial Review of Arbitration Award
A judicial review case concerning the interpretation of the word 'must' in a collective agreement's disciplinary clause. The court examined whether 'must' imposes a mandatory obligation or is merely directory, and whether the arbitrator's interpretation was reasonable.
Re Service Employees Union Local 246 and Heritage Nursing Home Ltd.
1977 CanLII 1048 (ON SC) · 1977-11-22Workplace Discrimination: Arbitration Award Quashed for Bias Against Immigrant Grievors
A judicial review of an arbitration award in a workplace grievance case, where the arbitration board's decision was quashed due to inappropriate language suggesting immigrant grievors may not understand the importance of truth under oath, raising concerns of bias and equality violations.
D. et al. v. Metropolitan Board of Commissioners of Police
1976 CanLII 805 (ON CA) · 1976-03-15Police Sick Leave Gratuities: Arbitration vs Municipal Act
This is an appeal concerning whether sick leave credit gratuities granted to police officers under a collective bargaining agreement are subject to limitations imposed by the Municipal Act. The Court of Appeal for Ontario determined that such gratuities are only subject to limitations expressly incorporated in the agreement or arbitration award, and that a 1971 amendment to the Municipal Act did not retroactively affect an arbitration award concluded in 1968.