FAQ’s

An employment contract is an agreement between an employer and employee regarding the employee’s term of employment. It can be implied, oral (for example a handshake agreement), or written. A standard employment contract contains information related to the employee’s job, such as their position, responsibilities, compensation, hours of work, vacation entitlements, workplace policies and so on.

A written contract of employment which clearly sets out the essential terms of the agreement between an employee and employer can curtail the possibility of a dispute between the parties later in the employment relationship. Employers will greatly benefit by having a clear and unambiguous termination clause to ensure that they do not violate the notice provisions of the BC Employment Standards Act, otherwise such a clause will be unenforceable, and the employer may be exposed to a greater notice or severance requirement at common law-reasonable notice. The costs of litigation will always outweigh the costs of having an employment contract prepared.

An employee handbook or employee manual gives employees a detailed overview of policies that are specific to your organization along with other key procedures, guidelines, and employee benefits.

An employee handbook sets clear expectations for your employees while also stating your legal obligations and defining employee rights. It can help protect your business against employee lawsuits and claims, such as wrongful termination, harassment, and discrimination. The handbook is also a crucial introduction to your business for new hires, providing insights for new hires to understand your mission and values.

Without effective policies and appropriate investigation processes in place, you risk significant liability and damage to the employees’ confidence in their employer. Workplaces are often the subject of intense scrutiny due to their flawed and/or negligent investigation techniques. 

A written contract of employment sets out the essential terms of the agreement. An employee handbook, when incorporated as part of the employment contract, is a contractually binding document.

An Employee Handbook should be tailored to the specific industry related needs of your company, but at minimum should outline all the core policies and procedures of a workplace, along with your company’s values and expectations. 

For example: Employers must implement procedures for responding to reports or incidents of bullying and harassment. The procedures must ensure a reasonable response to the report or incident and aim to fully address the incident and ensure that bullying and harassment is prevented or minimized in the future.

Under the common law in Canada, an employee must be terminated with reasonable notice, or pay in lieu of notice (i.e., severance), unless the employer has just cause for termination. A claim in wrongful dismissal arises when an employee has not received proper notice or pay in lieu of notice upon the termination of employment based on the legal requirements

The employee’s misconduct must give rise to a breakdown of the employment relationship. Some examples include, but are not limited to; dishonesty, insubordination, incompetence, theft (including time theft), breach of Employer’s rules and policies. Don’t assume that your employee’s conduct amounts to just cause, consult with a lawyer before terminating an employee for just cause to avoid possible litigation for wrongful dismal.

Severance pay is the compensation provided to an employee by their employer when the employee’s employment is terminated without cause (i.e., no fault of their own) and adequate notice of termination is not provided to the employee.

A “Release of Claims” is a legal document. By signing a Release, an employee typically gives up their right to make any claims against their employer following the termination of their employment. When executed correctly, the signed release may be relied upon by an employer as a defence for any future claims a former employee may attempt to bring against them. Seek legal advice before presenting an employee with a Release of Claims to avoid future litigation.

There are three important sources that will determine how much severance pay an employee will receive upon dismissal: the applicable employment standards legislation, the employment contract between the parties, and the common law. Seek legal advice in preparing an employee severance package to make sure that you are meeting your obligations and to avoid future litigation.

Discrimination is when a worker experiences harmful treatment at work that is connected to a part of their identity protected by the Human Rights Code. Sometimes these are called “protected characteristics” or “grounds of discrimination”. A full list can be found here. Employers have responsibilities under the Code to provide a discrimination free workplace.

A physical disability occurs when a physical or social setting makes it hard for a person with a physical condition to participate. A mental disability occurs when a physical or social setting makes it hard for a person with a mental condition or illness to participate. Both mental and physical disabilities are ‘protected characteristics’ under the BC Human Rights Code. 

Under human rights law, all employers are subject to a duty to accommodate employees with disabilities up to the point that the duty imposes an undue hardship on the employer. Accommodation means changing the rule or practice to incorporate alternative arrangements that eliminate the discriminatory barriers. Seek legal advice if you are unable to accommodate an employee on disability to avoid future discrimination claims and possible litigation.