Terminations are an unpleasant but necessary aspect of managing employees. However, when doing so, it’s essential that employers are compliant with BC’s Employment Standards Act (ESA) to reduce the risk of wrongful dismissal claims and fines. BC employers must provide terminated employees with the entitlements they are owed in accordance with the ESA. You must also ensure your actions are compliant with BC’s Human Rights Code.
Terminations for cause & without cause
There are two types of terminations in BC:
- Terminations for cause
- Terminations without cause
Employers in British Columbia are not required to provide a reason for a termination without cause. But they cannot terminate employees based on grounds protected by the Employment Standards Act or the Human Rights Code.
If the employee has been employed for at least three consecutive months, they are entitled to termination notice or termination pay in-lieu of notice, or a combination of both.
On the other hand, when an employer terminates an employee for cause, they have a valid reason for terminating the employee. Terminations for cause occur when an employer believes an employee has committed a serious act of wilful misconduct and/or breach of contract.
In these cases, “the onus of proof is on the employer to show on a balance of probabilities that an employee breached an employment contract in a fundamental way or has committed misconduct that has irreparably damaged the employment relationship”. These cases are rarer than terminations for cause, due to the burden of evidence being that much higher.
Potential reasons for a termination for cause include:
- Stealing
- Assaulting a co-worker
- Committing fraud
In a just–cause termination, the employer is not required to provide the employee with termination notice but they must provide the employee reasons for the termination.
What is Termination Notice?
An employee is entitled to written, reasonable notice of termination if they have been working for a company for more than three months. The amount of notice the employee is entitled to is based on their length of employment. And employers are required to make sure that said employee is able to earn an income throughout the notice period.
The notice period cannot begin if the employee is:
- On vacation
- On leave
- On temporary layoff
- On strike or lockout
- Off work for medical reasons
Essentially, if an employee is away from work, an employer cannot provide notice until they return. And once this period has begun, they may not change aspects of the role (e.g. wages) without signed permission from the employee.
What is Termination Pay?
An employer can opt to provide termination pay in lieu of notice. This option is ideal if the employer does not want the employee to work through the notice period and would prefer to provide a lump sum payment.
The amount of termination notice or pay in-lieu owed is based on the employee’s length of employment:
- Three months of employment but less than one year = one week of notice and/or pay
- One year of employment but less than three years = two weeks of notice and/or pay
- Three or more years of employment = three weeks of notice and/or pay, plus one week of notice/pay for each additional year of employment to a cap of 8 weeks.
Do you have questions about termination rules in BC?
If you need guidance on carrying out termination correctly in BC, Employer Line is here to help. Call today at- 1-888-219-8767. and an expert will be happy to answer all your questions.