Boughton's Employment and Labour Group warns employers to "Mean what you say when letting an apprentice go"

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It's usually hard to let an employee go and there are pressures that might make explaining the reason difficult. A recent case from the B.C. courts has given reason to pause and consider the implications of letting an apprentice go and the costs of not being forthright about it.

In this case, the dismissed employee started work under a four-year apprentice contract subject to the availability of work. He was subsequently fired and shortly afterwards the employer stated it was because of his involvement in criminal activity. Five months later, the employee commenced a court action and the employer changed his story and took the position that the reason for dismissal was downsizing. The trial judge determined that the employee had been fired because of the employer's unfounded suspicion that the employee was involved in criminal activity.

It was all bad news for the employer at the British Columbia Supreme Court. In addition to $18,151 for lost wages until the end of the four-year contract, the plaintiff recovered:

• moving expenses of $2,036;
• damages for consequential loss of his apprentice training and status amounting to $25,000;
• punitive damages of $100,000;
• special costs awarded because of the defendant's attempt to mislead the court as to the true reasons for termination.

The British Columbia Court of Appeal later overturned the most stinging aspect: the punitive damages award. They also found that the employment contract was not a fixed-term contract, because it contained a number of variables and therefore could be terminated with reasonabole notice. The case has since been sent back to trail level to assess the damages in lieu of a reasonable notice. The $25,000 for consequntial loss of status and training has been upheld, as has the special costs award, which means that the defendant is on the hook for a high percentage of the apprenctice's actual legal fees in addition to their own.

* This article was published in the April-May 2010 edition of the Vancouver Board of Trade's publication entitled, The "Sounding Board".

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