Employer’s ‘mind boggling’ failure to contract long-standing employee breaks longtime limit; employment lawyer explains risks
A recent Alberta court decision in a wrongful dismissal case is a fresh reminder for employers: failing to have formal employment contracts, no matter what other circumstances may be in place, can have devastating financial consequences.
The decision, Lischuk v K-Jay Electric Ltd, 2025 ABKB 460, saw a long-serving employee awarded more than $1.5 million in damages, 10 years after his initial wrongful dismissal claim was filed.
The 26-month reasonable notice period awarded to the employee for “exceptional circumstances” breaks the long-held 24-month “rough upper limit”, an unofficial cap for the province established in a 1986 decision.
As Evguenia Iskra, associate professor of business law at the University of Calgary’s Haskayne School of Business, explains, it’s a circumstance that could easily have been avoided.
“The employer made a huge mistake, that throughout the life of this employee, never bothered to have a written contract,” says Iskra.
“This is mind boggling.”
The facts of the Lischuk case are a wake-up call for employers. As Iskra explains, especially in the case of long-standing employees, the test for what are ‘exceptional circumstances’ might become more relevant as more baby boomers retire.
The Ontario Court of Appeal has outlined that in order for the upper limits of reasonable notice...
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