The Rand Formula is an element in Canadian labour law, also known as compulsory check-off. The purpose of the formula is to ensure that employees cannot refuse to pay union dues while still benefiting from the union’s advocacy efforts, eliminating the ‘free-rider problem’ that might otherwise exist in unionized workplaces.
The formula is named for Supreme Court Justice Ivan Rand who introduced the concept in 1946 while acting as arbitrator for a Ford strike in Windsor, Ontario. The Canada Labour Code outlines the circumstances under which the Rand Formula is applicable.
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