The employer’s duty of good faith

Bad faith can negate termination provisions
By Peter L. Biro
|Canadian Employment Law Today

Background

One of the main reasons employers use written employment contracts is to obtain certainty regarding the amount of notice employees will be entitled to upon termination.

But a contractual notice period in the termination provisions of an employment contract will not always limit the notice obligation to the periods stipulated in the contract. Where the employer has exercised bad faith in the manner of dismissal, a British Columbia Superior Court has held the contractual notice period can be increased.