Can I Sue My Employer? How to Take Legal Action in Canada

Albertan employees who are facing difficulties at work may wonder: Can I sue my employer? The answer isn’t always a simple yes or no. It depends on the specific circumstances of your situation and the nature of the issue.

This guide will explain:

• When legal action against an employer is possible in Alberta.
• What factors you should consider before pursuing a lawsuit.
• How to navigate the process if you decide to proceed.
• Important alternatives to suing that might offer a quicker resolution.

When Can I Sue My Employer?

Common Legal Grounds for Suing

Here are some of the most frequent reasons employees pursue legal action against their employers in Alberta:

Wrongful Dismissal

Wrongful dismissal occurs when your employment is ended without proper notice or pay in lieu of notice, and without “just cause” (a serious reason for immediate termination).

Constructive Dismissal

Constructive dismissal happens if your employer makes significant, negative changes to your job terms (like a large pay cut or demotion), forcing you to leave, which the law treats as if you were fired.

Unpaid wages, overtime, or benefits

If you have not been paid what you are legally owed, this is a clear ground for a claim. This can include:

• Regular wages
• Overtime pay
• Vacation pay
• General holiday pay
• Termination pay
• Unpaid or improperly deducted benefits

Breach of employment contract

If your employer violates a term outlined in your employment contract, whether it’s related to your salary, benefits, job duties, termination clauses, or other agreed-upon conditions, you may have a claim for breach of contract.

Harassment or Discrimination

If you have experienced workplace harassment or discrimination based on one of the protected grounds under Alberta’s Human Rights Act and your employer failed to address it appropriately, you may have grounds for a human rights complaint.

Retaliation for exercising employee rights

It is illegal for an employer to punish or penalize an employee for exercising their legal rights. This includes actions like:

• Reporting workplace health and safety concerns.
• Filing an employment standards complaint (e.g., for unpaid wages).
• Making a human rights complaint regarding discrimination or harassment.
• Participating in an investigation related to these matters.

Understanding Alberta’s Legal Framework

When considering taking action, it’s essential to understand the core legal frameworks that govern employment relationships in Alberta:

Alberta Employment Standards Code

This is provincial legislation that sets out minimum standards for most workplaces in Alberta. It covers fundamental aspects of employment, including:

• Minimum wage
• Hours of work and overtime
• Vacation and holiday pay
• Termination notice and termination pay
• Leaves of absence (e.g., maternity, compassionate care) 

Violations of the Alberta Employment Standards Code can be a basis for legal action.

Common Law Principles

Beyond the Employment Standards Code, employment relationships are also governed by “common law,” which often provides greater protections than the required minimums. 

For instance, common law typically entitles employees to more reasonable notice (or pay in lieu of notice) upon termination than the Code’s minimums, especially for longer-serving employees.

Alberta Human Rights Protections

The Alberta Human Rights Act is crucial legislation designed to protect individuals from discrimination and harassment. As mentioned earlier, it prohibits discrimination in employment based on various protected grounds. If you experience discrimination or harassment that is not properly addressed by your employer, you can file a complaint with the Alberta Human Rights Commission.

Is It Worth Suing Your Employer?

It’s crucial to weigh the potential benefits against the demands of legal action. A lawsuit is complex; understanding its implications upfront is key.

Factors to Consider

Before pursuing legal action, consider the following:

Strength of Your Case: Do you have solid evidence? This includes documents (contracts, emails, pay stubs) and witness accounts. A strong case is helpful for negotiation or litigation.

Costs of Litigation: Lawsuits can be expensive. Legal fees for consultations, filings, and court appearances add up. While some lawyers work on contingency, you might still pay for disbursements (court fees, copying). 

Potential Compensation vs. Legal Expenses: Will the amount you might recover genuinely outweigh your legal costs? A lawyer can help you estimate damages and compare them to projected expenses to help inform your decision.

Time Commitment: Lawsuits can take months, or even years. Be prepared for a lengthy process involving information exchange, mediations, and potentially trial preparation.

Emotional Considerations: Suing an employer can be very stressful. It involves confrontation, re-living difficult events, and dealing with uncertainty. Assess your capacity to manage this emotional toll.

How to File a Lawsuit Against an Employer

If, after careful consideration and legal advice, you decide that pursuing a lawsuit is the right path, understanding the process is essential. While your lawyer will guide you, knowing the general steps can help you prepare.

Key Steps

Gather Documentation

First, begin to put together all relevant documentation, which could include:

• A detailed, chronological timeline of events, including dates, times, and who was involved.
• Your employment contract and any related agreements.
• Pay stubs, records of hours worked, and benefit statements.
• Emails, texts, or letters related to your employment, performance, or termination.
• Performance reviews or disciplinary records.
• Witness contact information (if applicable).

Review Your Employment Contract

Your contract dictates many terms of your employment and termination. A thorough review will reveal specific clauses that impact your case, such as notice periods, confidentiality agreements, or restrictive covenants.

Seek Legal Advice

Before filing, consult with an employment lawyer to:

• Assess the strength of your evidence.
• Confirm the correct legal grounds for your claim.
• Clarify the full range of options available to you.
• Advise on the appropriate court or tribunal (e.g., Alberta Court of King’s Bench, Alberta Human Rights Commission).
• Help you understand potential outcomes and strategies.

File A Claim

Your lawyer will prepare and file the necessary legal documents. This typically involves a “Statement of Claim” for court cases, which formally outlines your allegations and the compensation you are seeking. For human rights issues, a complaint is filed with the Alberta Human Rights Commission.

Timelines to Be Aware Of

Strict deadlines, called “limitation periods,” apply to legal claims in Alberta. Missing these deadlines can mean you lose your right to pursue your case, regardless of its merits.

Below are potential limitation periods, however it is critical to confirm the precise limitation period for your situation with a legal professional. 

Claim Type	General Limitation Period
Most Civil Claims	2 years from discovery
Human Rights Complaints	1 year from the last discriminatory act.
Employment Standards Claims	6 months to 2 years, depending on type of claim.

Alternatives to Suing Your Employer

While you can take your employer to court, litigation isn’t always the only, or best, path. Several effective alternatives can resolve disputes more quickly, cost-effectively, and with less formality.

Mediation and Arbitration

These are forms of Alternative Dispute Resolution (ADR), aiming to settle issues outside of a formal courtroom. 

• Mediation: A neutral third-party that facilitates discussion to help both sides communicate and reach a mutually acceptable agreement. 
• Arbitration: A neutral third-party that hears arguments and evidence from both sides, then makes a binding decision.

Benefits of Resolving Disputes Through Mediation or Arbitration

• Cost-Effective: Often less expensive than full litigation due to reduced legal fees and court costs.
• Faster Resolution: Generally quicker than court processes, offering a more timely conclusion to disputes.
• Confidentiality: Proceedings are usually private, unlike public court records.
• Control Over Outcome: Parties often have more input into the solution, leading to more creative and mutually agreeable outcomes.
• Preserves Relationships: Can be less adversarial, potentially allowing for the preservation of professional relationships.

Human Rights Complaints

If your dispute involves discrimination or harassment based on protected grounds, filing a complaint with the Alberta Human Rights Commission is a key alternative.

When to File an Alberta Human Rights Complaint

This can be a path to take if:

• You believe you have been discriminated against or harassed based on protected grounds like race, gender, age, disability, or family status.
• You are seeking a resolution that addresses the discriminatory conduct, which could include policy changes, apologies, re-instatement, or financial compensation.

Employment Standards Complaint Process

This process handles complaints about unpaid wages (including overtime, vacation, holiday, and termination pay), hours of work, general holidays, and other minimum standards set out in the Employment Standards Code.

Once a complaint is filed with Alberta Employment Standards, an officer will investigate, which may involve gathering further information. They can issue an order for payment if a violation is found.

How Cashion Legal Can Help

Navigating workplace disputes can be daunting. At Cashion Legal, we provide comprehensive support, guiding you through the legal process with clarity and strategic insight.

Legal Support for Workplace Disputes

Our approach is designed to give you peace of mind and help get your career back on track.

• Initial Consultation: We discuss your situation thoroughly to understand the facts and your goals, and to clarify your legal position.
• Case Review and Strategy: We meticulously review your documents and develop a tailored strategy. We’ll advise on the best course of action and outline a clear path forward.
• Take Over Communications: We handle all legal communications on your behalf, including drafting letters, responding to inquiries, and managing negotiations, so you can focus on your well-being.

Representation in Court or Negotiations

Should your case require formal action, Cashion Legal provides strong representation.

Our team advocates for you in Alberta courts (King’s Bench, Provincial) or tribunals like the Human Rights Commission. We work to present your case effectively, whether in pre-trial stages or at a full hearing.

Many disputes settle out of court. We will strategically negotiate with your employer or their legal counsel, aiming for a fair resolution. Our goal is a clear outcome, helping you avoid prolonged court battles so you can move forward.

Why Legal Advice Matters

Navigating the decision of whether to pursue legal action against your employer can be confusing and stressful. Seeking legal advice can provide the essential support needed to effectively plan your next steps.

Clarity – Understanding Your Rights

• Plain Language Explanation: We explain your legal options in clear, straightforward language so you gain a full understanding of the situation. 
• Informed Decisions: Knowing your potential avenues for recourse allows you to make confident, well-informed decisions about how to proceed.

Peace of Mind – Know You’re Not Alone

• Supportive Guidance: Our Alberta employment lawyers provide empathetic support, ensuring you feel heard and understood during a difficult time.
• Reduced Stress: Having a legal professional by your side means you don’t have to face this process alone.

Strategy – Building a Strong Case

• Customized Approach: We develop a strategic plan tailored specifically to your unique circumstances and goals, aiming for the most favourable outcome.
• Getting Back on Track: Our focus is on helping you navigate the dispute efficiently, so you can focus on your professional future.

If you are facing a workplace dispute, seeking timely legal advice can make all the difference.

Book a consultation with Cashion Legal to take the first step forward.

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