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Canada Employer Liability Issues Wrongful Termination

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Ontario, Canada Appellate Court Provides Guidance to Employers on How to Draft Employment Settlement Documents

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The Court of Appeal for Ontario found that settlement documents signed after an employee separated from employment prevented him from suing for the value of vested stock options....more

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Ontario, Canada Court Orders Independent Medical Examination of Employee Claiming Indefinite Inability to Mitigate Due to Mental...

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Marshall v. Mercantile Exchange Corporation, 2024 CanLII 71128  (ONSC), is an action for wrongful dismissal where the employee claimed he could not mitigate his damages by seeking alternative employment indefinitely because...more

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Ontario, Canada Court Reinforces Waksdale’s Impact on Enforceability of Termination Provisions and Provides Guidance on Proving...

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In De Castro v. Arista Homes Limited, 2024 ONSC 1035, Ontario’s Superior Court of Justice (Court) held the termination provision in an employment contract was unenforceable because it defined “cause” more broadly than does...more

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Ontario, Canada Appeal Court Confirms Employment Contract Frustrated by Employee’s Refusal to Comply With COVID-19 Vaccination...

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In Croke v. VuPoint System Ltd., 2024 ONCA 354, the Court of Appeal for Ontario (OCA) upheld the Superior Court of Justice – Ontario (SCJ)’s summary judgment decision that an employee’s refusal to comply with their employer’s...more

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Ontario, Canada Appeal Court Finds Aggravated Damages Award Can Be Made Without Medical Evidence of Diagnosable Psychological...

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The Court of Appeal for Ontario (OCA) recently held that an employee may be awarded aggravated damages for an employer’s bad-faith conduct during the employee’s dismissal even in the absence of medical evidence identifying a...more

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Canadian court upholds termination of unvaccinated worker

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The Ontario Court of Appeal recently held that an employee’s failure to meet COVID-19 vaccination requirements imposed by a third party amounted to frustration of the employment contract. As a result, there was no obligation...more

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British Columbia, Canada Appeal Court Rejects Employer’s Frustration Defence in Circumstances Connected to COVID-19

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In Aldergrove Duty Free Shop Ltd. v. MacCallum, 2024 BCCA 28, the Court of Appeal for British Columbia (BCCA) dismissed an employer’s appeal when it agreed with the lower court that the employer could not use the frustration...more

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Ontario, Canada Court Decides Wrongfully Dismissed Employee’s Rejection of Offer of Comparable Employment Amounts to Failure to...

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In Gannon v. Kinsdale Carriers, 2024 ONSC 1060, the Ontario Superior Court of Justice denied common law reasonable notice to an employee who was wrongfully dismissed from her employment on the basis that she failed to...more

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British Columbia Appeal Court Upholds Finding That Employee’s Surreptitious Recording of Conversations with Colleagues Justified...

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In Shalagin v. Mercer Celgar Limited Partnership, 2023 BCCA 373, the British Columbia Court of Appeal (BCCA) upheld the lower court’s dismissal of an employee’s wrongful dismissal claim and its finding that his surreptitious...more

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British Columbia Court Finds Employer Had Just Cause to Dismiss Full-time Employee Who Worked on Side Business During Working...

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In Dove v Destiny Media Technologies Inc., 2023 BCSC 1032 , the Supreme Court of British Columbia found that an employer had just cause for the dismissal of a full-time employee who worked on a side business during working...more

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British Columbia Court Finds Employee Voluntarily Resigned

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In Khangura v Lumberwest Building Supplies Inc., 2023 BCSC 1053, the Supreme Court of British Columbia dismissed an employee’s claim that he was entitled to damages because he had been wrongfully dismissed without cause. The...more

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Ontario, Canada Arbitrator Upholds Reasonableness of Hospital Vaccination Policy Providing for Employment Termination of...

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An arbitrator recently issued the first award in Ontario to address and uphold the reasonableness of a hospital vaccination policy that provides for the termination of employment for non-compliance.  In Lakeridge Health and...more

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Ontario, Canada Court Awards Employee $15,000 in Moral Damages for Employer’s Bad-Faith Conduct Regarding His Dismissal

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In Teljeur v Aurora Hotel Group, 2023 ONSC 1324, a wrongful dismissal case, the court awarded the plaintiff-employee seven months’ damages for reasonable notice, and $15,000 in moral damages due to the employer’s bad-faith...more

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Ontario, Canada Court of Appeal Addresses How Employers Can Preserve Right to Unilaterally Lay Off Employees Without Being Found...

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In Pham v. Qualified Metal Fabricators Ltd., 2023 ONCA 255, the Ontario Court of Appeal (OCA) found that unless an employee’s employment contract provides otherwise via an express or implied term, an employer’s unilateral lay...more

Bennett Jones LLP

"Small Claims" Get Bigger—Increases to Monetary Limit for Small Claims in Alberta Will Impact Wrongful Dismissal Litigation

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In December 2022, the Alberta legislature passed a bill allowing for an increase to the limit on civil claims in the Alberta Court of Justice (formerly, the Provincial Court of Alberta and sometimes referred to as "small...more

Stikeman Elliott LLP

“Fixing” the Term of Employment: Fixed-Term Agreement defends against Wrongful Dismissal Claim

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In the recent Steele v. The Corporation of the City of Barrie, 2022 ONSC 7245 decision (“Steele”), the Ontario Superior Court of Justice provided some insight into when longer term fixed-term contracts can be enforceable....more

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CERB Appeal: Alberta Court of Appeal finds CERB Not Deductible from Wrongful Dismissal Damages

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The Alberta Court of Appeal determined that Canada Emergency Response Benefit (“CERB”) payments are not deductible from wrongful dismissal damages, following an emerging trend from other jurisdictions....more

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Alberta, Canada Court of Appeal Decides CERB Payments Should Not Be Deducted from Damages for Wrongful Dismissal

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The Alberta Court of Appeal (ABCA) recently addressed an increasingly common question—whether financial support provided under the Canadian Emergency Response Benefit (CERB) program to workers directly affected by COVID-19...more

Stikeman Elliott LLP

Employers, CERB Your Enthusiasm: British Columbia Court of Appeal Rules CERB is not Deductible from Wrongful Dismissal Damages

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First Canadian Appellate Court determines that Canada Emergency Response Benefits (“CERB”) payments are not deductible from wrongful dismissal damages. In Yates v Langley Motor Sport Centre Ltd., the British Columbia...more

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Canada: British Columbia Court of Appeal Decides CERB Payments Should Not be Deducted from Damage Awards for Wrongful Dismissal

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In Yates v. Langley Motor Sport Centre Ltd., 2022 BCCA 398, the Court of Appeal for British Columbia (BCCA) decided that Canada Emergency Response Benefit (CERB) payments should not be deducted from damage awards for wrongful...more

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Alberta, Canada’s Human Rights Tribunal Awards $50,000 to Employee Whose Employment Was Terminated After Claiming Sexual...

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In McCharles v Jaco Line Contractors Ltd., 2022 AHRC 115, an employee alleged that her employer discriminated against her on the basis of gender contrary to the Alberta Human Rights Act (AHRA) when it terminated her...more

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Ontario, Canada Court of Appeal Sets Aside Judgment Reducing Employee’s Reasonable Notice Period for Failure to Mitigate

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In Lake v. La Presse, 2022 ONCA 742, the only issue on appeal was whether the lower court erred in reducing the employee’s wrongful dismissal damages for failure to mitigate. The Ontario Court of Appeal (OCA) set aside the...more

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An Oppressive Outcome: Alberta Court Finds Directors Responsible for Severance Obligations

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The recent decision of the Alberta Court of Queen’s Bench, Wisser v CEM International Management Consultants Ltd., 2022 ABQB 414, determined that the oppression remedy under the Alberta Business Corporations Act (“ABCA”),...more

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Ontario, Canada Court Determines Plaintiff Employee (Not Independent Contractor) Wrongfully Terminated by Common Employers

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In a wrongful dismissal action against four corporate defendants that were part of a family business, the plaintiff claimed the defendants were common employers, that he was their employee prior to his dismissal, and was...more

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Ontario, Canada Court Strikes Employer’s Defence in Wrongful Dismissal Action After it Continuously Avoids Scheduling its...

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In Ferguson v. Yorkwest Plumbing Supply Inc., 2022 ONSC 4792, an employee who commenced a wrongful dismissal action via Ontario’s Simplified Procedure rules was granted an order striking the employer’s statement of defence...more

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