Frustration of Contract in British Columbia: What Employers and Employees Need to Know

Ending employment relationships is never easy, but some situations arise where neither the employer nor the employee is truly at fault for the end of the employment relationship. In British Columbia, “frustration of contract” is a legal doctrine that can bring an employment relationship to an end when unforeseen events make continued employment impossible or fundamentally different from what was originally envisaged by the parties. Understanding what frustration means, and often more importantly what it doesn’t, can help both employers and employees navigate this complex area of employment law.

What Is Frustration of Contract?

Frustration of contract occurs when an unexpected event beyond the control of either party renders the performance of the employment contract impossible or radically different from what the parties originally agreed to. Unlike a typical dismissal, frustration is not about misconduct or poor performance. It is about circumstances that no one could have reasonably anticipated or … Continue reading

Offer Letters vs. Employment Agreements: Why Employers Shouldn’t Mix and Match

Employers want to secure top talent quickly, and many hiring relationships begin with a short and friendly offer letter and later evolve into a more detailed employment contract. But when it comes to long-term protection and legal clarity, there’s no substitute for a carefully drafted employment agreement.

While both documents deal with the terms of employment, their legal implications and purposes are very different. Confusing the two, or worse, trying to use both can potentially expose employers to costly legal pitfalls.

What’s the Difference Between Offer Letters and Employment Agreements?

Offer Letters are typically short documents that provide a brief summary that confirms the basic terms of an employment offer: the role, the compensation, the start date, and sometimes they address other matters such as benefits or probation periods. They’re often used by an employer to get a commitment from a candidate before going to the trouble of drafting a Continue reading

Losing Your Job While on Maternity Leave in BC: Understanding Your Rights and Legal Remedies

Starting a family is supposed to be an exciting and joyful time, but for some employees in British Columbia, maternity leave can be overshadowed by the stress and uncertainty of losing their job. Even though there are clear legal protections that prohibit employers from terminating employees because they are pregnant or taking maternity or parental leave, this type of wrongful dismissal unfortunately still occurs.

As highlighted in this CTV News article, a new study has found that a significant number of employees lose their jobs while on maternity leave.

Maternity and Parental Leave Protections Under BC Law

In British Columbia, the Employment Standards Act (the “ESA”) provides employees with the right to take unpaid maternity leave of up to 17 consecutive weeks, as well as up to 61 additional weeks of parental leave. These leaves are job-protected, which means your employer must allow you to return to your same … Continue reading

How Post-Termination Conduct Can Impact A Wrongful Dismissal Claim

Wrongful Dismissal claims occur when an employee believes they have been fired without just cause or without proper notice or pay in lieu of notice. To pursue these claims employees have to pay for a lawyer to bring the case in Court, and employers have to pay lawyers to defend against them, whether the claims are meritorious or not. Regardless of which side of the equation you find yourself, as employee or employer, often parties only consider the circumstances that existed at the time of termination as being relevant to a claim for wrongful dismissal. The reality is that the post-termination conduct of both employee and employer can have a significant impact on claims for wrongful dismissal.

Post-Termination Conduct Repudiating Employment Contract

The governing legislation for employment relationships in British Columbia includes the Employment Standards Act and common law principles. The Employment Standards Act sets out minimum standards for notice … Continue reading

The Importance of Fresh Consideration in Employment Contracts

In British Columbia, employers frequently revise employment agreements to reflect evolving roles and responsibilities, or compensation structures. However, one critical legal principle often overlooked in this process is the requirement for fresh consideration. Without it, employers risk having their updated agreements declared unenforceable, a mistake that can be costly in employment litigation.

What Is “Consideration”?

At its core, “consideration” refers to something of value exchanged between parties entering into a contract. In the employment context, this usually means offering the employee something new, such as a promotion, raise, signing bonus, or new benefits, in exchange for their agreement to new or updated contract terms. “Fresh consideration” is simply a further exchange of value if you intend to change a pre-existing contractual relationship.

Fresh consideration becomes particularly important when:

  • An employee signs a contract after having already started work; or
  • An employer attempts to change an existing employment agreement.

Without fresh … Continue reading