Recent Wrongful Dismissal Decisions Impacting BC Employers
Wrongful dismissal remains one of the most litigated areas in employment law, and 2025 has already seen several significant decisions from British Columbia courts that clarify employer rights and responsibilities when ending employment. These cases reinforce the importance of procedural fairness, clearly documented policies, and accurate damage calculations. Below, we highlight three recent BC Supreme Court wrongful dismissal decisions every employer should consider when making termination decisions.
Just Cause Upheld After Long-Term Employee Caught Falsifying Time Records
Basic v. Solid Rock Steel Fabricating Co. Ltd., 2025 BCSC 287
In this February 2025 decision, the Court found that an employer was justified in summarily dismissing a 20-year employee for dishonesty, time theft, and insubordination. The employee had falsely reported worked hours, including paid coffee breaks, and then defied managerial direction.
Key Takeaways for Employers:
- Even long-serving employees are not immune to summary dismissal where misconduct is serious, deliberate, and well-documented.
- Maintaining precise timekeeping and disciplinary policies, along with a paper trail, can be decisive in just-cause disputes.
Unpaid Leave for Non-Compliance with COVID-19 Policy Not Constructive Dismissal
Clark v. City of Prince George, 2025 BCSC 812
In June 2025, the BC Supreme Court dismissed a constructive dismissal claim brought by an employee who was placed on unpaid leave after refusing to comply with a municipal vaccination policy. The Court held the policy was reasonable and that placing the employee on leave did not breach the employment agreement.
Key Takeaways for Employers:
- Reasonably implemented workplace policies—especially those tied to health and safety—can withstand legal challenges if applied consistently.
- Constructive dismissal claims may fail where the employee is still technically employed and the employer is acting in good faith.
Damages Recalculated After Improper Deduction for Post-Notice Mitigation Income
Plank v. Hapnin Enterprises Ltd., 2025 BCSC 790
This April 2025 case involved a dispute over the calculation of damages in a wrongful dismissal claim. The employer had deducted income the employee earned after the reasonable notice period had ended. The Court held this was inappropriate and increased the damage award from approximately $13,000 to nearly $32,000.
Key Takeaways for Employers:
- Only mitigation income earned during the reasonable notice period may be deducted from damages – income earned beyond it can’t be used to reduce damages.
- Employers should exercise caution when calculating damages, as mistakes can lead to judicial correction and increased payouts.
Closing Thoughts
These recent wrongful dismissal decisions reflect a maturing landscape in BC employment law—where courts are prepared to uphold just cause terminations, recognize the reasonableness of safety-related policies, and closely scrutinize damage assessments. Employers are reminded to ensure that dismissals are procedurally sound, supported by evidence, and that post-termination earnings are properly accounted for when calculating liability.
Spraggs Law offers support to both employers and employees navigating termination disputes. Our team provides tailored guidance on dismissal strategy, severance assessments, and litigation risk in British Columbia’s evolving employment law environment.
If You Have Questions, We Can Help
If you’re an employer in British Columbia and have questions about your rights and other business laws and obligations, our Workplace Law Specialists at Spraggs Law are here to help. Please don’t hesitate to contact us at 604 359 1618 or online today.
Please note: This article does not contain legal advice. If you would like advice on your specific situation, please contact Spraggs Law.
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