Wrongful dismissal is not about whether an employer can end an employment relationship, it is about how that termination is carried out. A dismissal may be considered wrongful where an employee is terminated without cause and does not receive the notice or compensation required by law.
In British Columbia, even if the decision to terminate is lawful, failing to provide appropriate notice or pay in lieu can result in liability.
How a Lawyer Can Help in Wrongful Dismissal Matters
Wrongful dismissal issues are often more complex than they first appear. Whether you are an employee reviewing a severance offer or an employer managing a termination, timely legal advice can help clarify your rights and obligations and support informed decision-making.
We assist employees with:
- Assessing whether severance offers meet statutory and common law entitlements
- Reviewing employment contracts for enforceability and key termination provisions
- Advising on whether a severance package is fair in the circumstances
- Negotiating improved compensation or pursuing a claim where appropriate
We advise employers on:
- Structuring terminations in compliance with applicable employment standards and common law obligations
- Reviewing employment agreements to assess enforceability and risk exposure
- Determining appropriate notice periods and severance packages
- Managing risk and minimizing the likelihood of disputes
Careful planning and early guidance can help reduce uncertainty, avoid unnecessary conflict, and lead to more predictable outcomes. Where disputes arise, we support clients in negotiating resolutions or pursuing claims through the appropriate legal channels.
Termination Entitlements: Legislation Vs. Common Law
In British Columbia, termination entitlements are shaped by two key sources: statutory minimums and the common law. Understanding how these interact is essential to assessing whether a termination has been handled properly.
The first source is legislation, specifically the Employment Standards Act. This statue sets the minimum notice or pay in lieu that an employer must provide. These amounts are based primarily on length of service and establish the baseline that cannot be contracted out of.
The second source is the common law, which often provides greater entitlements unless a valid and enforceable employment agreement clearly limits notice. Courts determine “reasonable notice” by considering factors such as the employee’s age, length of service, position, and the availability of similar employment. As a result, common law notice periods can significantly exceed statutory minimums.
What this Means for Employees
This means your entitlement may go well beyond the minimum amounts set out in legislation. If you do not have a contract that limits your notice entitlement or if that contract is unenforceable, you may be entitled to common law reasonable notice, which can substantially increase your severance. Factors such as your length of service, age, role, and the availability of similar employment can all affect what you are owed.
What this Means for Employers
This distinction is critical. Without a properly drafted and enforceable employment agreement, termination costs may be much higher than expected. Relying solely on statutory minimums can expose you to wrongful dismissal claims, making it important to structure employment contracts and termination strategies carefully to help reduce risk and support more predictable outcomes.
Assessing Severance and Compensation
Determining fair compensation requires a careful analysis of the circumstances. Severance in British Columbia is influenced by statutory minimums, contractual terms, and common law principles, with each case depending on its specific facts.
For employees, it is important to look beyond the initial offer and understand your full legal entitlement. Factors such as length of service, age, role, and job market conditions may all affect what you are owed. Reviewing your employment contract and whether its terms are enforceable is also a key part of this analysis.
Assessing severance for employers, involves balancing legal obligations with practical considerations. Providing a fair and well-structured package at the outset can reduce the risk of disputes and support a smoother transition. Clear communication, proper documentation, and enforceable agreements are essential to managing risk effectively.
What an Employee Should do After at Termination
The first thing to know is that you should not feel pressured to accept a severance offer immediately. You can request time to review any documents before signing which will give you time to gather your employment contract and compensation details. Once you have these together, it is recommended that you seek legal advice to understand your entitlements.
Taking these steps can help ensure you are making informed decisions at a critical time.
Steps for Employers When Terminating Employment
Employers can reduce risk by taking a thoughtful and structured approach to termination:
- Review the employment contract and applicable policies
- Assess statutory and potential common law notice obligations
- Prepare clear documentation and communication
- Conduct the termination meeting respectfully and professionally
Careful planning can help avoid disputes and support better outcomes for all parties.
Wrongful Dismissal Lawyers in Port Coquitlam
Wrongful dismissal issues can be complex and time-sensitive. Whether you are an employee reviewing a severance offer or an employer planning a termination, informed legal advice can make a meaningful difference.
At Alder Law, we provide clear, practical advice to help employees and employers understand their position and move forward with confidence, whether negotiating a resolution or preparing for litigation.
Do you have concerns with wrongful dismissal? Please call us at 604 936 9600, email [email protected] or complete the contact form and we will be in touch.
Wrongful Dismissal Frequently Asked Questions
What is the difference between wrongful dismissal and constructive dismissal?
When an employer fails to meet reasonable notice of termination or pay in lieu, it may constitute wrongful dismissal. Whereas, constructive dismissal occurs when an employer makes significant changes to an employee’s job without their consent, effectively forcing them to resign. While the employee may appear to have left voluntarily, the law may treat the situation as a termination if the changes fundamentally alter the employment relationship.
How much notice or severance am I entitled to?
Termination entitlements depend on several factors, including length of service, age, position, and availability of similar employment. You may be entitled to more than the minimum standards set by law, often referred to as “reasonable notice.” As an employer, without a properly drafted employment contract limiting notice, common law obligations may significantly exceed statutory minimums.
What is the difference between termination pay and severance pay?
In British Columbia, “termination pay” generally refers to the minimum pay required under employment standards legislation, while “severance” often refers to the broader compensation an employee may be entitled to under common law.
Can my employer terminate me without cause?
Yes, employers in British Columbia can terminate employment without cause, provided they give proper notice or pay in lieu. Terminations must be handled carefully to ensure compliance with both statutory and common law obligations. It is important to note, that even if the termination is lawful, employees are still entitled to fair compensation.
Should I accept a severance package right away?
It is often advisable to review a severance offer carefully before accepting. Once accepted, you may lose the right to pursue additional compensation. Legal advice can help you understand whether the offer is fair. If you are an employer, providing employees with time to consider offers can support enforceability and reduce the risk of future disputes.
What is “just cause” for dismissal?
Just cause refers to serious misconduct that justifies termination without notice or severance. Employers must meet a high legal threshold to establish just cause. If your employer improperly alleges just cause, it can increase liability if the claim is not supported.
How long do I have to make a wrongful dismissal claim?
There are time limits for bringing a claim, which vary depending on the legal route taken. It is important to act promptly to protect your rights. Employers should address disputes early to help avoid escalation and additional costs.
How are wrongful dismissal claims resolved?
Many claims are resolved through negotiation, but some proceed to court or other legal processes. You may be able to negotiate a better severance package or pursue a claim if necessary.
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