Best Practices to Avoid Wrongful Dismissal Claims

1. Best Practices to Avoid Wrongful Dismissal Claims

2. Occasionally, employers may need to terminate a working relationship with an employee. Doing so in the manner defined by the law is vital. Otherwise, there is a risk that someone may file a wrongful dismissal case against your Alberta company. Litigating these claims can be time-consuming, expensive, and stressful for employers. Even if a working relationship is contentious, employers have to follow the law regarding terminations. Otherwise, you might find yourself in need of an employment lawyer in Alberta. Before reaching that point, you can implement some best practices to ensure the appropriate outcomes when managing your human resources.

3. What Qualifies as a Wrongful Dismissal? The law surrounding wrongful dismissal has many nuances. It’s helpful to understand the basics to avoid situations involving an improper dismissal. There are two primary scenarios to consider. The first scenario is when you terminate an employee for cause yet cannot provide evidence of the cause later. For example, terminating an employee for chronic tardiness when the individual’s time records don’t reflect such behaviour could create room for a wrongful dismissal claim. This situation may also arise when you cannot establish that the employee’s conduct amounted to “just cause” under the law.

4. The second situation involves termination without cause. You may face wrongful dismissal issues if you terminate the employee without providing the proper advance notice *or* pay in lieu of notice. For that reason, employers need to understand both the periods of notice that the law requires and how to structure appropriate severance offers. How Can You Guard Against Wrongful Dismissal Claims? There are several approaches an employer may take to ensure that terminations occur appropriately. Here are a few best practices to remember. Craft appropriate employment agreements

5. You may craft your employment agreements with a termination clause clarifying which circumstances warrant an end to the working relationship and what the employee’s entitlements are upon a with or without-cause termination. However, the courts have continuously upheld strict standards regarding enforceable language in a termination clause. Creating these clauses with attention to detail is essential so that they are as clear as possible. In doing so, you can protect your business and provide transparent, mutually agreed guidelines for the termination process. Employees should be made aware of such information at an early stage. Avoid constructive dismissal

6. Unilaterally changing the terms of an individual’s employment without reason or substantially altering their duties beyond their employment agreement is often viewed as constructive dismissal. Avoid significant changes to an individual’s work or compensation without their consent. Instead, follow the normal termination procedure to end the working relationship. Consult with employment lawyers When preparing to fire an individual for cause, you may wish to consult with an employment lawyer to ensure that you will be able to establish just cause in front of a court. Due diligence today could prevent a potential lawsuit filing tomorrow. Ensure you have the proper evidence to counter claims of wrongful dismissal.

7. Understand notice and severance obligations Both pay in lieu of notice and working notice must be appropriate for the individual employee taking into account factors such as their age, position, and length of service. Work carefully to formulate severance packages that meet the legal expectations and represent fair value to both parties. Be timely with dismissals for cause

8. If you wish to terminate an employee for misconduct, document your evidence and promptly commence the process. Continuing to employ an individual after misconduct may be construed as condoning the behaviour, which can complicate a later termination or prevent you from alleging cause later. Find Support for Employment-Related Decisions

9. Use the appropriate employment strategies and well-considered, legally aligned policies to minimize the risks of facing a wrongful dismissal claim in Alberta. Is your process streamlined to enable the smooth separation of employees from your business appropriately? Speaking with an employment lawyer in Alberta can help you learn insights and strategies that limit your potential exposure to these claims. Lypkie Henderson’s highly experienced team is ready to help field your questions in this area today. Connect with us to learn more.