Falling Short on Policy? Recent BC Cases Show What Employers Can’t Afford to Get Wrong

Each quarter, Spraggs Law publishes a curated selection of articles about trending HR and employment-related topics. This quarter, we explore two significant appellate decisions that clarify how British Columbia’s labour laws apply when employees or operations cross provincial borders. We also examine recent BC cases and local rulings where courts awarded substantial damages to former workers, highlighting the financial and reputational risks employers face when return-to-work plans or termination processes fall short. Finally, we round out this update with timely news from WorkSafeBC and a reminder about BC’s 2025 minimum wage increase.

Recent BC Cases Involving Jurisdictional Overlap

BC Court of Appeal upholds ban on out-of-province replacement workers

In a landmark ruling released on July 14, 2025, the BC Court of Appeal upheld a decision by the Labour Relations Board that barred Gate Gourmet Canada from deploying out-of-province workers to replace striking union members at Vancouver International Airport. Despite the replacement workers being based in Alberta and Ontario, the Court held that their deployment was substantially connected to BC operations and, therefore, subject to the Labour Relations Code. The decision affirms the province’s jurisdiction over labour practices affecting BC-based services, even when labour is sourced from outside of the province.

Forum selection clause enforced in interprovincial employment dispute

In Bit v. Krahn Engineering Ltd., 2025 BCCA 167, the Court of Appeal enforced a forum selection clause in favour of Alberta, where the employee had worked despite residing in BC. The Court deferred to the existing Alberta proceedings and upheld the contractually agreed jurisdiction. The case underscores the complexities of corporate governance and fiduciary duties that extend across provincial boundaries.

For businesses with operations or employees across provinces, clear forum selection clauses are essential to avoid duplicative litigation and jurisdictional uncertainty.

Two BC Cases That Cost Employers

Dependent contractors may be entitled to employee-like notice periods

In Ursic v Country Lumber Ltd., 2025 BCSC 970, the Court ruled that a dependent contractor was entitled to reasonable notice, similar to an employee. The plaintiff had worked almost exclusively for one company for over 14 years and was awarded over $82K in damages for being terminated without notice. The Court considered the degree of reliance and integration into the business in determining the extended notice period. Employers using long-term contractors would be wise to assess whether these individuals function more like employees. If so, termination obligations may be significantly higher than anticipated.

Employer penalised re. out-of-province workers, a mishandled return to work, and more

In Nunez-Shular v. Osoyoos Indian Band, 2025 BCSC 491, an employee who had returned from medical leave was demoted and gradually excluded from her role, culminating in a finding of constructive dismissal. The Court awarded her 24 months’ notice and $50,000 in aggravated damages, citing the employer’s poor handling of her reintegration and the resulting psychological harm. The case serves as a critical reminder to employers that return-to-work plans must prioritize dignity, fairness, and continuity. Any reduction in responsibility or change in reporting structure must be justified, documented, and communicated carefully.

Recent Updates to WorkSafeBC Rates and BC’s Minimum Wage

WorksafeBC confirms 2026 premium rate freeze

WorkSafeBC has confirmed that the average base premium rate for 2026 will remain at $1.55 per $100 of assessable payroll, marking the ninth consecutive year without an increase. The agency will also return a portion of its surplus to eligible employers. While stable premium rates offer welcome predictability, employers should review the proposed regulatory changes and submit feedback where appropriate.

BC Minimum Wage Increased to $17.85/hr

As of June 1, 2025, British Columbia’s general minimum wage increased from $17.40 to $17.85 per hour. The adjustment, mandated by the annual inflation-linked framework in the Employment Standards Act, also updated specialized rates for “live‑in camp leaders, home support workers, resident caretakers, and app-based delivery and ride-hail workers.”