Are you worried about big employment law claims in British Columbia?
If you’re running a company in British Columbia and think an employee lawsuit “won’t happen to me,” you’re wrong. It could. Maybe not this quarter. Maybe not this year. But it’s very possible that one is coming. The only question is whether you’re ready or you’ll be writing a six-figure cheque while wondering how HR let this happen.
I’ve seen more of these than I care to admit. I’ve seen businesses with five staff and a $300,000 claim. A restaurant that barely broke even until one server claimed constructive dismissal and walked away with more than the owner made that year. A small technology firm had a project manager take a stress leave and return with a lawyer. That one cost them 24 months of severance, which, when you do the math… $6,250 a month x 24 months is $150,000. No one in that office’s management laughed for months.
Let me tell you what I’ve learned the hard way. This stuff isn’t about right or wrong. It’s about documentation, consistency, and knowing when to shut up.
Terminations in British Columbia
Take terminations. Everyone thinks they’re a good communicator until it’s time to fire someone. I watched a founder once tell an employee over email, “It’s not you, it’s the economy.” That person showed up three weeks later with a claim that the company just didn’t want to accommodate her disability. The employer’s words, meant to soften the blow, became evidence. We couldn’t unwind it. It cost them $87,000 and an apology letter, which they meant even less than the first thing they said.
Most companies don’t realize that the employment law in BC leans hard toward workers. It’s not in favour of the companies at all. Judges want the little guy to win. If there’s ambiguity, it cuts against you. You’re on the hook for common law severance if there’s no contract. And common law doesn’t mean “normal,” it means “expensive.” Think one month per year of service, plus benefits, vacation, emotional damage, and whatever else their employment lawyer can squeeze in there.
A lawyer I know had a client who had a warehouse worker with five years on the job, no written contract. The guy got fired for showing up drunk twice. The employer had witnesses. Even breathalyzer results. Still had to pay out $40,000. The reason for this was that they didn’t give him a chance to sober up and respond. That’s the bar now: you need to hold someone’s hand through the termination process even if they’re hammered at work.
Independent contractor
I’ve seen folks try to get clever with “independent contractor” agreements. Those fall apart faster than IKEA furniture in a flood. If someone works full-time for you, uses your tools, follows your schedule, and answers to your manager, they are probably an employee. It doesn’t matter much what their contract says. CRA sees through it as they want their payroll taxes. Courts do too. Misclassification penalties hit hard. I watched a construction company lose $220,000 over it. That’s not a typo. Two hundred and twenty grand. They thought they were saving payroll tax. Ouch.
It’s not just termination that bites. It’s the slow burns. Overtime claims. Missed breaks. Harassment that someone reported but HR never followed up on. These stack up. If you have five employees and one of them is quietly building a case, you won’t know until you get the letter. Then it’s all, “we take this very seriously” and “we are investigating.” But the damage is done. You can’t email someone a culture retroactively.
Big Employment Law Claims
The best money you’ll spend isn’t on a raise. It’s on a rock-solid employment contract (you can get started by using Caseway AI) and an HR consultant who tells you the truth, not what you want to hear. Pay $1,500 now and save $150,000 later. That’s a 10,000% return. Try getting that in the stock market.
When someone sues, employment lawyers will tell you, “Settle. It’ll be cheaper.” And they’re right. But it doesn’t feel good. You’ll lay awake thinking about fairness. That part doesn’t appear on the invoice, but it’s there.
I kept a “red flag list” of phrases predicting legal trouble. My personal favourite: “We’re like a family here.” If you’re saying that, you’re either about to underpay someone, fire your cousin, or ignore toxic behaviour until it eats your company from the inside. Families are messy. Your business shouldn’t be.
If you’re reading this and haven’t updated your contracts since 2020, you’re already in danger. Laws changed. COVID blurred the lines on remote work, sick days, and what counts as a “reasonable” request. The courts are catching up now. And they’re not feeling charitable.
Protecting your business isn’t just about revenue. It’s about avoiding landmines that don’t show up on your P&L but blow everything up. Employment law is one of them. Pay attention now, or pay a lot later. Do your part to prepare for big employment law claims.
