The plaintiff commenced an action for constructive dismissal against her former employer.
The defendants moved to stay the action under Rule 21.01(3) and s. 7(1) of the Arbitration Act, 1991, relying on an arbitration clause in the plaintiff's employment agreement.
The plaintiff argued the arbitration clause was invalid, unconscionable, and contracted out of minimum employment standards.
Applying the competence-competence principle, the court held that the arbitral tribunal must first determine the validity of the arbitration clause.
The action was stayed pending the arbitrator's determination of the jurisdictional challenge.