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Alberta Employment Law: Bad Faith Tactics in Covid times

The Supreme Court of Canada recently clarified that bad faith can be a separate cause of action in employment lawsuits. The Supreme Court has said dishonesty in the performance of employment contracts may lead to a cause of action in Bad Faith. The timing for this change in the law good, as we have run across a number of situations that will likely lead to bad faith claims. These situations appear to be arising as a reaction to the Covid related economic slowdown. (at the least people are likely to blame Covid situation for their poor behavior).


We have seen an uptick in employers alleging both cause and after-acquired cause with weak cases. The courts have said that this can lead to aggravated damages, but it seems like this could also be a ground for alleging bad faith.


Non-responsiveness to employee communication seems to be a developing area. We have seen a number of employers (and their lawyers, unfortunately) who simply are choosing not to respond to correspondence. We believe that may be a ground for alleging bad faith.


Anecdotally we have heard of employers who are alleging cause, and not providing an offer, and then once counsel become involved, providing an appropriate offer.


All of these tactics may be a grounds for alleging a case for bad faith damages. If your former employer is not responding, delaying or engaging in other suspect negotiating tactics or allegations, please feel free to contact us.

The information contained in this article is not legal advice. No solicitor client relationship is formed through this article. The reader is encouraged to retain counsel for advice in these matters.








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