The Rand Formula

Supreme Court of Canada (Public Domain Photo)

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.