First published on Wednesday, August 20, 2025
Last updated on Wednesday, August 20, 2025
Welcome to HR Heartbeat, where we take a look at the week’s most pressing HR and employment law stories. With over a decade of experience working within the HR and employment law industry, I give my opinion on current trends impacting your business, as well as my own personal commentary on all things HR and legal.
NOT cleared for takeoff…
This past week has been nothing short of turbulent for Air Canada as about 10,000 flight attendants walked off the job, rejecting the airline’s latest contract proposal. The move forced more than 700 flights to be cancelled, and left summer travel plans in chaos.
As of Tuesday August 19th, the airline and the Canadian Union of Public Employees (CUPE) reached a tentative agreement to end the contract dispute and agreed to flights gradually resuming.
Canadian employers can learn a lot from this. Strikes don’t happen to only big airlines; they can happen in any workplace when communication breaks down or employees’ needs are unmet.
That’s why it’s crucial to have a clear process in place for things like negotiations, address employee concerns early, and keep staff engaged so you prevent small issues from spiraling into business-stopping disputes.
It might seem straightforward, but as Air Canada’s recent labour dispute shows, employment issues can escalate quickly if they’re not handled carefully. Strikes, walk-outs, and other disputes don’t just disrupt operations; they can cost time, money, and trust. That’s why having access to expert advice 24/7 is so valuable. With the right guidance at the right moment, businesses can resolve conflicts before they spiral and keep productivity on track.
The price of a throwaway line
A long-serving employee has won his wrongful dismissal case after being let go by an employer who mistakenly thought he’d resigned during an ambiguous phone call.
The Supreme Court of British Columbia ruled that the 64-year-old worker—laid off when business slowed during COVID-19—didn’t tender an official resignation during the call where he remarked that he “might as well just retire.” The employer treated this as a resignation but made no effort to confirm, update records, or follow up. The court found this fell far short of the legal requirement for a “clear and unequivocal” resignation.
When the employee wasn’t recalled within the extended layoff period, his termination was deemed a constructive dismissal under the Employment Standards Act. In the end, the employer was ordered to pay six months’ notice, amounting to $14,500. The payout could have been higher if the employee hadn’t already been very vocal about his plan to retire at 65.
I advise employers to never assume vague or undocumented conversations are a leg to stand on in the workplace. It’s best to confirm intentions in writing and follow up promptly. During layoffs or extended absences, clear documentation and proactive communication are essential to avoid wrongful dismissal claims and costly disputes.
Fixed term fallouts
A new ruling from British Columbia has upended what many employers assumed was settled law on fixed-term contracts.
The B.C. Court of Appeal ruled that employees on fixed-term contracts must try to find new work if terminated early, and any income earned reduces what the employer owes—unless the contract explicitly says otherwise.
This is a sharp contrast to Ontario, where courts have held that dismissed fixed-term employees are entitled to the full value of the remaining contract, with no duty to mitigate.
For national employers, the split is significant: in BC, early termination may cost less if the employee finds new work; in Ontario, it could mean paying out the entire contract.
Fixed-term contracts aren’t risk-free, and the rules differ depending on where your employees are based. To reduce liability, include clear termination clauses and stay alert to future rulings that may reshape how this area of employment law evolves.
And that’s a wrap from me. Tune in next time for my take on the latest headlines and employment law stories, helping keep your business ahead!
