In Sprong v Chinook Lifecare Association, 2024 ABCJ 163 (Pharo, J), the Alberta Court of Justice found that a short term employee was not employed under a fixed term and was only entitled to two weeks’ reasonable notice.
This case considers various employment law issues, including what constitutes a valid employment offer, what fixed-term employment is, what rights and obligations probationary employees have, and what reasonable notice a short service employee could be entitled to in some cases.
Facts
The following were some of the pertinent facts summarized by the ACJ:
- Tania Sprong was an employee of Chinook Lifecare Association in a part time customer service position for about 2 months
- Sprong was offered a new position of Director of Development of Programming for 2 months, at which time it would be reviewed. She accepted it and started working in the new role
- The offer was verbal, and there was no written employment contract
- Five days later, the Chinook Lifecare board of directors had an emergency meeting and decided to terminate Ms. Sprong’s employment. Her employment was terminated the next day
- The employee sued for wrongful dismissal. She was employed under a fixed-term contract of 2 months
- The employee claimed damages for the unexpired portion of her alleged fixed-term contract, plus $5,000 for damage to her reputation
- The employer’s defences were: that the person who offered Ms. Sprong the new position did not have authority to offer it, and that she was a probationary employee and not entitled to severance
Analysis / Conclusion
Justice Pharo quickly rejected Chinook Lifecare’s position that the person who offered the position did not have authority to do so and moved on to the question of whether it was a fixed term contract and whether it could be terminated without notice in the probationary period.
Chinook Lifecare argued it did not need to pay any severance because Ms. Sprong’s employment ended during the first 90 days, which is the probationary period under the Alberta Employment Standards Code.
The Court found that Ms. Sprong was a probationary employee and not employed under a fixed term, because the position was stated to be for 2 months and that it would be reviewed at that time.
However, the Court rejected Chinook Lifecare’s position that it could terminate without notice, noting that common law damages may be awarded even where statutory damages are not applicable. The exception is where there is just cause for dismissal, which was not an issue in this case.
The Court awarded a reasonable notice period of 2 weeks.
The Court considered the claim of $5,000 for damage to reputation, and found that there was no evidence of bad faith in termination of employment, so it was not awarded.
My Take
The reasoning in this case is a bit unusual. I am not surprised the Court found this was not a fixed-term contract, but I am surprised how the Court did that – effectively by saying that she was a probationary employee and so not a fixed-term employee.
To me these are distinct legal questions. A fixed-term employment contract can in some cases allow for a probationary period and other early-termination provisions. They are not mutually exclusive, and where a contract does not prevent a probationary employee from receiving severance, the proper severance would be the balance of the fixed term.
Even if its not a fixed-term per se, the fact that the contract was “for 2 months” could support an argument for severance covering the balance of that term based on reasonable expectations.
Whatever else this case may be, I would also say it’s a bit of a win for employers.
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