The province continues to show deference to employers in wrongful termination cases advancing through to the highest courts in BC.
In the recent BC Court of Appeal case, Egan v. Harbour Air Seaplanes LLP, 2024 BCCA 222 (CanLII), the court found that the termination clause in Harbour Air's employment contract with its former employee, Mr. Egan, to be reliable and unambiguous. No award was granted to the plaintiff beyond what Harbour Air had already paid him under its termination clause, whereby the clause lawfully adhered to termination minimums set out under the Canada Labour Code, RSC 1985, c. L-2 ("Code").
In reaching her decision, Madam Justice Baker outlined the pertinent sections of the Code regarding the work done by Harbour Air, being "aircraft" and "air transport", which clearly falls under federal jurisdiction. Similar to provincial legislation, such as B.C.'s Employment Standards Act [RSBC 1996], the Code sets out minimum termination entitlements based on an employee's length of service. The legal analysis relied on cases tied to provincial legislation, and the judge held:
"While these cases rely on provincial employment standards...there is no principled reason why such reasoning would not apply to an employment contract governed by the Code.
Further legal analysis surrounding the fact that Mr. Egan's
benefits were terminated in an alleged contravention of the Code
fell flat because it was determined that he was no longer employed
from the date of his termination, was duly paid all his termination
pay, and as he was no longer an employee of Harbour Air,
terminating his benefits had no relevance under section 231 because
there was no "working notice" under which the benefits
would require to be extended.
Mr. Egan's claim for damages was dismissed and Harbour Air's application to dismiss the action was allowed.
This case is good authority for employers who wish to rely on their well-drafted, unambiguous and lawful employment agreements, including crucial termination clauses. It helps employers to understand certain nuanced differences between provincial and federal legislation regarding employment matters, and the importance of getting this right at the outset.
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