Watch enthusiasts: do you know what SWATCH watches are? Of course you do! But do you know what this trademark actually means? Is it: a) an invented term b) an English word c) a term that is partly in English, that is, the letter “S” combined with the word WATCH d) all of the above? This is the question the Tribunal administratif du Québec (“Tribunal”) had to answer in Groupe Swatch (Canada) Ltée c. Office québécois de la langue française1, in order to determine whether Groupe Swatch (Canada) Ltée (“Groupe Swatch”) was required to add a sufficient presence of French to the signage of its boutiques. It should be noted that this decision was rendered under the former provisions of the Charter of the French Language (the “Charter”) and the Regulation respecting the language of commerce and business (the “Regulation”). As of June 1, 2025, the requirement of a sufficient presence of French has been replaced by the criterion of the marked predominance of French in public signage visible from outside premises. For many people, the SWATCH trademark is an invented term, but the Office québécois de la langue française (“OQLF”) takes a different view… The OQLF’s Position According to the OQLF, SWATCH is a trademark composed of the following elements: S and WATCH. S for “Swiss” or “second” WATCH for “watches” Result: the trademark is composed, in part, of the English word “watch”. Consequence: the Swiss company was required, under the former provisions of the Charter and the Regulation, to ensure a sufficient presence of French on its storefront signage. Groupe Swatch’s Position According to the Swiss company, the SWATCH trademark does not belong to any language because SWATCH is an invented term, consisting of an artificial combination of letters. Therefore, no French presence is required on its storefront signage, by virtue of the “artificial combination of letters” exception set out in section 26 of the Regulation. The Tribunal’s Position First, the Tribunal rightly recalls that the exceptions provided for in the Charter and the Regulation must be interpreted restrictively. The Tribunal then adopts a pragmatic approach, putting itself in the shoes of the average consumer to determine how the public would perceive SWATCH store signage. The Tribunal accepts Groupe Swatch’s position and applies the “artificial combination of letters” exception. In the Tribunal’s view, the public will conclude that SWATCH is an invented term, made up of an artificial alignment of letters and, consequently, the requirement to add French does not apply. This reflects a pragmatic approach based on public perception, as opposed to a strict approach such as the one advocated by the OQLF, which breaks down the SWATCH trademark into two components (S and WATCH). Fortunately so! Otherwise, trademarks composed of invented terms that include a sequence of letters such as “ON,” “IN,” “UP,” “GO” could, for example, have been considered as trademarks in a language other than French rather than as invented terms. Such an approach would have required the addition of markedly predominant French wording in a public signage context. Observations This decision provides an initial and helpful clarification in a context of uncertainty regarding the interpretation of certain new provisions of the Charter and the Regulation, and it has the advantage of being favourable to trademark owners. Indeed, this decision allows for reliance on public perception where a trademark can be seen as an artificial combination of letters, even though that same trademark could be broken down to reveal words in another language. One noteworthy point deserves mention: the OQLF does not appear to have argued (or at least insisted) that SWATCH is an English vocabulary word meaning “sample.” Yet, the Charter and the Regulation expressly require the presence of French (formerly, a sufficient presence; since June 2025, a marked predominance) where a trademark appears in another language on public signage visible from outside a building or premises. Was this argument debated? It is difficult to say from reading the decision. Otherwise, would the outcome have been the same? Looking ahead, what will 2026 bring in terms of the application of the new rules? Certain data and statistics drawn from the OQLF’s2 most recent annual report lead us to believe that the marked predominance of French in public signage will be a priority. One thing is certain: the OQLF is maintaining its dialogue-based approach to encourage amicable solutions, which is welcome. Let us hope for a more pragmatic approach by the OQLF with respect to trademarks, based on public perception, as set out in the SWATCH decision. Let us also hope for a guide providing clarifications on this issue and many other questions arising from the application of the new rules. Happy New Year! Bonne Année! ¡Feliz Año Nuevo! Buon Anno! 2025 QCTAQ 10426 OQLF’s Rapport annuel 2024-2025, published October 9, 2025 (https://www.oqlf.gouv.qc.ca/office/rapports/rag2024-2025.pdf)

Lavery’s Annual Insurance Law Review will be held on Tuesday, February 17. This conference will provide a review and analysis of the most significant insurance law decisions rendered in Quebec over the past year. We will also discuss their practical implications for your organization, your risk management, and your business operations. The training is recognized by the ChAD and the Barreau du Québec. When: February 17, 2026, From 8:00 to 9:30 a.m. Speakers : Jonathan Lacoste-Jobin et Dominic Boisvert   In order to receive an attestation of attendance for continuing education purposes, please use your professional email address for registration and be sure to attend the entire webinar. Register to the webinar

With Christmas festivities just around the corner, employers must strike a balance between festive atmosphere, team spirit and legal obligations, particulary in terms of risk prevention. Although employers have always had responsibilities in relation to Christmas parties,1 the obligations regarding psychosocial risk prevention, introduced in October 2025, imposes new requirements.2 These obligations require that employers pay special attention to the psychological health of employees and specific measures to prevent psychosocial risks during company events, such as Christmas parties. But responsibilities do not fall on employers alone, employees also have a role to play during Christmas parties. To ensure that festive gatherings between colleagues are a success, everyone must do their part. 1. Employer’s obligations 1.1 Work accidents Although a Christmas party may take place outside what is considered regular working hours, an accident occurring during such an event may still be deemed to have occurred “in the course of work”, within the meaning of the Act respecting workplace accidents and occupational diseases.3 Because this concept is not defined in the law, case law establishes certain criteria to determine whether an activity in which a worker engaged at the time of the accident is closely related to their work. These criteria include: Where the incident occurred; the time of the incident; the remuneration for the activity in which the worker was engaged at the time of the incident the existence and degree of authority or subordination of the employer if the incident does not occur on the premises or during working hours; the purpose of the activity performed at the time of the incident, whether incidental, ancillary or optional to the employee’s working conditions; the nature of the connection or relative usefulness of the employee’s activity relative to the performance of their duties.4 None of these criteria is decisive on its own. They must be considered as a whole, taking the specific facts of each case into account. As an example of how broad the scope of this principle is, the Administrative Labour Tribunal (“ALT”) recently found that a worker who had injured herself while dancing during an activity organized by the employer’s social committee had suffered an accident “in the course of work”.5 The fact that the employer had allocated a budget for the event and granted time off to encourage employee participation made it possible to establish a link of usefulness and relevance to work.6 Conversely, in another decision, a worker who was running a stand serving hot drinks at an event held for city residents participated in a game called “The Christmas Tree Toss” with volunteers and employees after closing her stand.7 While performing her throw, she suffered an injury to ther right knee. After reviewing the aforementioned criteria, the ALT found that the accident had occurred as part of the worker's private life and not “in the course of work.” The gathering and participation in the event were not part of professional duties, and the event was intended for city residents. All attendees had left the premises, with only employees and volunteers left.8 1.2 Harassment and the importance of following procedures The Act respecting labour standards requires employers to take reasonable measures to prevent psychological and sexual harassment.9 In particular, all employers must develop a harassment prevention and management policy and make it available to their employees. Since September 2024, such policies must include recommendations on appropriate behaviour during work-related social activities, such as Christmas parties.10 More broadly, according to the Act respecting occupational health and safety, in Quebec, employers must take measures to prevent situations of physical or psychological violence, including spousal, family or sexual violence.11 Employers must strictly adhere to their internal procedures if this type of incident occurs. A grievance arbitrator made this point in a case where a plaintiff was dismissed from his employment after having refused to cooperate in an investigation regarding allegations of participation in events of a sexual nature and drug use after a Christmas party having been held by the plaintiff’s employer.12 Although the alleged acts took place in a hotel outside working hours and in a private setting, they had a negative impact on the work environment. The employer had been informed of persistent rumours that were detrimental to the proper functioning of the business. In this case, to warrant the holding of an internal investigation, the employer had been able to establish a sufficient link between the activities, which first appeared to have taken place in the employee’s private life, and its business. However, the fact that the employer had failed to obtain the plaintiff's version of events before taking disciplinary action, as required by its own procedure, affected the outcome. As a result, the contestation of the dismissal was allowed.13 To avoid this type of situation, employers must make it a point to follow their own internal complaint handling procedure. 1.3 Disciplinary offences Since office Christmas parties are connected to the workplace, employees are generally required to fulfill their obligations. Misconduct on their part could warrant disciplinary measures. For example, if an employee engages in harassment or insubordination, in particular while under the influence of alcohol, which can be a catalyst for problematic behaviour, their employer will be entitled to impose disciplinary measures. However, an employer cannot impose two penalties on an employee who committed a disciplinary offence. A grievance arbitrator has ruled that suspending an employee for three days for a sexually suggestive gesture made jokingly at a Christmas party, in addition to prohibiting the employee from attending subsequent Christmas parties for three years, constituted double punishment. The financial penalty linked to the suspension was deemed sufficient as a disciplinary measure for the alleged offence.14 2. Best practices for employers In order to minimize the risks associated with the Christmas holidays, employers could implement the following practices. To prepare for parties : Ensure that your harassment and alcohol and drug use policies are up to date, in accordance with applicable law. Prepare an incident-related risk analysis mechanism (and include psychosocial risks). Send employees a reminder before the event, pointing out that employer policies continue to apply and reminding them of expected behaviours and ways to get help or report problematic situations. Implement preventative measures regarding alcohol consumption. For example, employers should limit alcoholic consumption by providing coupons, offer a choice of non-alcoholic drinks, along with food, or close the bar at a specific time. Offer employees options at the event where alcohol will be consumed, such as taxi vouchers, ride-sharing services or accommodation. During the party : Employees comply with internal policies and respond immediately. Managers are present and able to respond quickly to inappropriate behaviour and document any incidents that occur. Preventive measures, such as closing the bar or distributing taxi vouchers, among others, are applied. After the party : Follow up with the organizing team to determine what went well and what did not, including any incidents that occurred, to apply corrective actions. Objectively assess all reports and initiate an impartial and confidential investigation if necessary, meeting with the parties involved to obtain each person’s version of the facts, in compliance with policies or rules arising form laws, collective agreements or contracts. Keep records of incidents that have occurred, as needed. Update policies and procedures in light of lessons learned. 3.Conclusion With Christmas parties just around the corner, it is worth remembering that for a party to be deemed successful by employers and employees alike, it is not only the festive atmosphere that counts, but also the effectiveness of the implemented preventive measures. Before holding your event, put the necessary risk prevention measures in place so that everyone can fully and safely take part in it. We invite you to read the following articles on these subjects: Lavery, “The Success of Employer-Organized Christmas Parties: It Is Everyone’s Business?” November 29, 2023, URL: The Success of Employer-Organized Christmas Parties: It Is Everyone’s Business?. Lavery, “The return of Christmas parties: What employers need to know,” December 9, 2022, URL: The return of Christmas parties: what employers need to know. We invite you to read the following article on this subject : "Occupational health and safety: Understanding employers’ new obligations", December 10, 2025, URL: Occupational health and safety: Understanding employers’ new obligations Act respecting industrial accidents and occupational diseases, CQLR, c. A-3.001, s. 2. Cannara Biothech (Valleyfield) inc. et Boulanger, 2025 QCTAT 1771, para. 9. Ibid, para. 1. Ibid, paras. 23–29. Murphy et Ville de Léry, 2022 QCTAT 5309, para. 1 Ibid, paras. 40–46. Act respecting labour standards , CQLR c. N-1.1, s. 81.19. Ibid., s. 81.19, para. 1, subpara. 3. Act respecting occupational health and safety, CQLR, c. S-2.1, section 51 (16). Syndicat des salariés(es) de l'agroalimentaire de Ste-Claire (CSD) et Kerry Canada inc. (Richard Guay) , 2022 QCTA 224, para. 1.  Ibid, paras. 109–111. Teamsters Québec, section locale 1999 et Univar Canada ltée (Jean-Martin Gobeil), 2020 QCTA 344 paras. 77–80.