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Wrongful Dismissals, Trustee Disputes, and a Landmark Land Title Ruling in BC
Each month, Spraggs Law publishes Vancouver Legal News, a curated selection of legal stories making headlines in British Columbia. This month, we examine four recent employment law decisions involving wrongful dismissal, constructive dismissal, and severance disputes, plus a ruling that clarifies the limits of suing employers for workplace injuries. We also explore two estate-related matters, including a denied request to vary a will, before concluding with a significant Supreme Court land title ruling that could reshape how BC handles fee simple property ownership.
Recent Wrongful and Constructive Dismissal Rulings in BC
Pandemic-related layoff leads to wrongful dismissal finding
The British Columbia Supreme Court case Gent v. Askanda Business Services Ltd. highlights the complexities of wrongful dismissal versus resignation. An employee who was laid off during the COVID-19 pandemic maintained he did not resign despite his employer’s claims. The court ruled in favour of Gent, emphasizing that clear and unequivocal evidence of resignation is necessary. Furthermore, the employer failed to seek clarification on Gent’s intentions, ultimately leading to an award of six months’ pay for wrongful dismissal. This case highlights the importance of clear communication and thorough documentation in employment relationships.
Non-compliance with vaccine policy is not constructive dismissal
The British Columbia Supreme Court’s ruling in Clark v. City of Prince George affirms the validity of employer-mandated vaccination policies, determining that an employee’s unpaid leave for non-compliance does not constitute constructive dismissal. The court emphasized the implied authority of employers to enforce health and safety measures and recognized the necessity of such policies during the pandemic. This decision provides crucial guidance for employers navigating similar legal challenges and reinforces their ability to implement reasonable workplace safety protocols.
Unfounded allegations lead to a costly penalty in dismissal case
The Supreme Court of British Columbia has ordered Macquarie Energy Canada to pay increased costs to a former employee, B.A.H., in a wrongful dismissal case due to three unfounded just cause allegations. While the court found no evidence of bad faith, it deemed the company’s conduct unusual enough to justify a higher cost indemnity. The allegations involved cannabis use, unauthorized pricing quotes, and disclosing confidential information, all deemed baseless. However, a fourth claim regarding a remote work policy was upheld, and each party will bear its own costs for the application. The ruling underscores the importance of substantiated claims in employment disputes and the potential financial repercussions of pursuing baseless allegations.
When Employer Protections Hold, and When They Don’t
Tribunal ruling shields employer from lawsuit under workers’ compensation law
A British Columbia Supreme Court judge upheld a tribunal’s decision preventing a First Nation finance director from suing her employer after a workplace assault. Despite filing a civil lawsuit and claiming various torts, the tribunal ruled her injuries fell under workers’ compensation provisions, which prevent legal action against employers for work-related incidents. The ruling emphasized the applicability of provincial workers’ compensation laws to federal workplaces and reinforced the balance between providing workers with no-fault compensation and protecting employers from lawsuits, with costs awarded to the defendants.
Ambiguous contractual language costs BC employer severance payout
A BC Supreme Court ruling awarded a 64-year-old engineer five months’ severance following his termination from a BC communications company, despite only six months of employment. The court rejected the company’s claim that the employee’s notice period was limited to five weeks, citing ambiguous contractual language and inadequate evidence. The judge highlighted the engineer’s senior role and extensive job search efforts, which revealed challenges in securing comparable employment. This decision reinforces the importance of clear contractual terms and reasonable notice based on individual circumstances in termination cases.
Recent Developments in BC Trusts and Estate Law
Size of inheritance key in denied request to vary will
Earlier this year, a British Columbia court denied a beneficiary’s request to vary her late mother’s will, which sought to establish a discretionary trust for her $1.8 million inheritance. The beneficiary sought this adjustment to protect her disability benefits, arguing the will lacked adequate provisions for her support. The court ruled that the will’s distribution was sufficient, emphasizing that the beneficiary’s inheritance could meet her needs without jeopardizing her benefits. Ultimately, the court found that no moral obligation was breached by the mother’s decision not to include a trust, deeming the will’s terms appropriate given the size of the estate. The court’s decision reinforces the need for claimants to prove a will’s failure to make adequate provisions before it can grant an application to vary a will.
Landmark Land Title Ruling Challenges Foundations of BC Land Ownership
Aboriginal title recognized as superior to fee simple in BC case
A landmark land title ruling by the British Columbia Supreme Court in Cowichan Tribes v Canada establishes Aboriginal title as a superior claim over fee simple interests, creating significant uncertainty for private landowners. The court concluded that historical Crown grants infringe upon Cowichan’s Aboriginal rights and invalidated many fee simple titles within the claimed area. This decision challenges the traditional land title system and raises critical questions about property ownership in BC. With the provincial government planning to appeal, the ruling underscores the complex interplay between Indigenous land rights and private ownership, potentially reshaping the future of land titles in the province.
In the world of non-profit organizations and associations, the ultimate success metric isn't profit, it's impact. Every moment spent by staff and leaders is meant to drive the core mission forward, whether it's supporting a community, advocating for a cause, or delivering essential services. Yet, the complex, shifting landscape of modern human resources management often becomes a confusing distraction, obscuring the path and draining valuable resources.
This is where the concept of the HR Guide becomes crucial. Just as a guide illuminates the path ahead, external HR support takes on the burden of personnel administration, compliance, and policy development. This strategic partnership ensures that the organization's leaders, the "team" can clearly focus on the horizon: their mission.
Freeing the Team to Attend to the Core Value and Envision Possibility
For non-profits, staff time is perhaps the most precious commodity. When internal resources are tied up dealing with performance management, policy updates, or benefits administration, the mission delivery suffers.
External HR partners are specialists who bring deep expertise and economies of scale. By handling the transactional and compliance-heavy aspects of HR, they create an immediate dividend: time.
Staff members are liberated to concentrate on core programmatic work, fundraising, and strategic planning. They move from administrative tasks back to impactful work, accelerating the organization’s progress toward its goals.
Additionally, non-profits are intrinsically linked to their community. When internal stress over HR issues is reduced, staff can dedicate more energy to listening, collaborating, and effectively serving their stakeholders, strengthening the vital bond with the people they exist to help.
Laying the Bedrock for True Teamwork and Collaboration
A healthy organization is one where people feel safe, valued, and focused. External HR support acts as an unbiased, highly informed guide, ensuring the organization operates smoothly and legally, which directly boosts internal health and collaboration.
Regulatory compliance, from local labor laws to federal reporting, is a requirement that changes constantly. A misstep can result in severe financial penalties and, critically, damage to reputation. An external HR guide points you to the compliant path, giving leaders peace of mind.
Furthermore, these partners specialize in building robust internal systems that promote positive working relationships:
- Fair Policy Development: They implement modern, equitable policies for everything from PTO to conflict resolution, creating a level playing field.
- Unbiased Conflict Resolution: External professionals can mediate disputes objectively, fostering a culture of mutual respect and making it easier for disparate teams to collaborate effectively toward a shared objective.
- Talent Development: They can help associations and non-profits build the structure for effective training and leadership pipelines, ensuring the right people are in the right seats and working together harmoniously.
The Moral Compass: Upholding Trust and Integrity
Non-profits thrive on trust and integrity. Donors, grantors, and community members invest in an organization not just because of its cause, but because they believe in how that organization operates. In the digital modern landscape, these values are more important, and more fragile than ever.
The speed and reach of digital communication mean that a lapse in ethical behavior, a failure of internal governance, or a poorly handled personnel issue can be instantly publicized, leading to an immediate and catastrophic erosion of public confidence.
External HR helps non-profits safeguard their values in multiple ways. They establish clear codes of conduct and reporting mechanisms that uphold the highest standards of integrity., they ensure HR processes are fair, well-documented, and transparent, reinforcing that the organization lives its stated values and they advise on policies related to data privacy, digital communication, and social media behavior, ensuring staff conduct reflects the organization's core values in every online interaction.
By partnering with an HR guide, non-profits gain a vigilant advocate for ethical practice, ensuring that every internal procedure reinforces the values of trust and integrity that are essential for long term survival and mission success in the connected world.
Fulfilling the Promise
External HR support is not an expense; it is a strategic investment in the organization's capacity for impact. It is the expert guide that manages the complexity, ensures compliance, reinforces essential values, and frees up the organizational leaders to focus on their core competencies, driving the mission, uplifting the community, and promoting seamless collaboration within their ranks.
With an expert guide illuminating the path and supporting the administrative depth, non-profits can truly concentrate on their purpose.
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As a business leader, you're constantly told that AI is the future, the ultimate tool for efficiency, a new engine for growth, and a non-negotiable part of staying competitive.
All of that is true. But it’s only half the story.
The conversations happening in boardrooms across Canada aren't just about what AI can do. The smartest leaders are asking the much more critical question: What can AI do to us?
Before you invest in a single piece of AI software, consider this: every time your team uses a generative AI tool, they're having a conversation. They might be uploading client data, inputting strategic plans, or drafting sensitive internal communications.
Have you stopped to ask who might be listening?
The Two Questions Every Leader Must Ask Before Adopting AI
1. From a Legal & Compliance Standpoint: Who Owns This Conversation?
When you input your proprietary data into a third-party AI, you are stepping into a legal grey area. In British Columbia, privacy legislation like PIPA has strict rules about how personal information is handled.
- Data & Privacy: Does your AI vendor's policy align with your legal obligations to your clients? Is your data being used to train their model?
- Intellectual Property: Who owns the output? If AI helps you create a brilliant new business strategy, is that strategy truly yours to protect?
- Accountability: If an AI provides incorrect legal or financial advice that you act on, who is liable for the mistake?
Navigating this requires more than just a software license. There’s an urgent need for a bulletproof legal framework.
2. From an HR & People Standpoint: Is Your Team Ready for This Conversation?
The second, equally critical risk is internal. AI is not just a tool; it's a new kind of team member, and integrating it without a clear plan can create significant friction.
- Policy & Governance: Do your employees know what is and isn't acceptable to share with an AI? An "Acceptable AI Use Policy" is no longer a nice-to-have; it's an essential piece of corporate governance.
- Bias & Fairness: If you use AI to screen resumes or analyze performance data, how do you ensure it's not perpetuating hidden biases that could lead to discrimination claims?
- Upskilling vs. Replacing: The real opportunity with AI isn't replacing people but augmenting them. A thoughtful strategy for training and role evolution is required to reduce fear and unlock your team's potential.
Know Where You’re Going Before You Take Off
AI offers incredible possibilities, no question. But adopting it without clear legal, operational, and human frameworks is like taking off and flying blind. You might gain altitude quickly, but without direction, you risk veering off course or running out of fuel. Strategic alignment keeps innovation airborne and helps you reach your intended destination.
We help Canada's most ambitious companies build that solid foundation. We provide the integrated legal, HR, and strategic guidance to ensure you can leverage AI with total confidence.
Your first step is to understand where you stand.
Find out if your business is truly ready for AI, and equally important, if AI is ready for your business. Enter your email to the right to receive our complimentary AI Readiness Assessment. It's a simple, 7-question scorecard designed to give you immediate clarity on your biggest risks and opportunities.
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.”