Can Your Employer Reduce Your Pay?

Posted on by Brian Jacobson Posted in Employment Contracts, Severance Entitlements, Constructive Dismissal, BC Employment Standards Act

When it comes to employment, compensation is a crucial aspect that directly impacts every employee’s livelihood and satisfaction with their job.  In Canada workers are protected by laws that outline the rights and responsibilities of employees and employers. However, the question of whether an employer can reduce an employee’s pay is a matter that requires closer examination.

Understanding Employment Contracts

In British Columbia, employment relationships are typically governed by employment contracts. These contracts can be oral or written, explicit or implied. When an employer wishes to alter an employee’s pay, it is essential to first review the terms of the employment contract. The contract may contain provisions related to salary, overtime, bonuses, or other forms of compensation. If the contract allows for pay reductions under specific circumstances, the employer may have the authority to make such a change, provided they don’t run afoul of employment laws and employment standards.… Continue reading

What is the Duty to Mitigate in Employment Law Cases?

Posted on by Ben Tarnow Posted in Wrongful Dismissal, Employment Agreements, Duty to Mitigate

Having your employment terminated can be a terrible blow, not just to your confidence and self-image, but financially as well.  If you have lost your job but your employer has not paid you what you’re owed under the law for severance, or other obligations, you can bring an action in the court system to be made whole.

One of the most common types of employment law claims are wrongful dismissals.  These claims centre around the allegation that your employment was terminated without cause and you were not provided the appropriate severance payment in light of the following considerations:

  • The terms of your contract 
  • Your age
  • The nature of your position
  • Your length of service 
  • Your remuneration or pay 

The amount you are owed for a wrongful dismissal will vary depending on these considerations. However, you are not entitled to simply sit on your hands and await payment of damages from … Continue reading

What is Constructive Dismissal?

Posted on by Ben Tarnow Posted in Constructive Dismissal

While most employment terminations are usually done via a letter or in a face-to-face meeting, not all dismissals are so cut and dry. A constructive dismissal is a dismissal of an employee that arises as a function of an employer changing the terms of employment for an employee unilaterally.  Such a change can rise to the level of a constructive dismissal, entitling the employee to take the position that they have been terminated and are entitled to damages.

What is the threshold for constructive dismissal?

Not just any change to the employment relationship can result in constructive dismissal.  It is the nature of business that changes need to be made from time to time with respect to personnel and operations. However, if an employer makes a unilateral change to an employee’s pay, position, duties, hours of work or location of work, such that they fundamentally alter the employment contract terms … Continue reading

Probation Periods – More Trouble Than They Are Worth?

Posted on by Ben Tarnow Posted in Probation Periods, Employment Agreements, Workplace Policies

Many employers have as part of their employment agreements a probationary period for all new hires for the first three months of employment.  Often employee benefits and other employment perks like accruing vacation time or being entitled to participate in a bonus program don’t crystallize until after this probationary period ends.

The reason most employers do this is because they believe that they can fire their employees without cause and without severance if they feel the employee is just not a good fit, or any other reason, if it is done within the probationary period.  Since employers view this time as a chance to test out the employment relationship without any obligations upon termination, they also hold off on setting up the employee’s benefits, etc. until they know the employment relationship will move on past the initial probationary period.

The problem with this view of the employer relationship is that … Continue reading

How to Fire an Employee

Posted on by Kevin Blair Posted in Employee Termination

Everyone would like for all employment relationships to work out great each time. The employer and employee get along, the work environment is the right type for everyone there, interpersonal relationships with the staff are positive, employees stay with the business long-term, overhead and cash flow are not a problem for the employer, and everyone lives happily ever after. Unfortunately, this is simply not the reality of operating a business. 

The reality of operating a business is that things rarely go without hiccups, there will be issues that arise with interpersonal relationships between staff, not every employee will be a good fit for the job, some employees expectation may not fit what’s available at your particular business at the time, whether profits are up or down and, as always, businesses will be at the mercy of the prevailing state of the market, economy and specific industry at any given time.  … Continue reading