A BC painter whose employment was terminated without cause decided to pursue legal action against his former employer for what he believed he was owed in severance.
Iain Lewis worked for Kelowna-based Hanington Painting.
Lewis claimed $2,880 for “common law severance” at the BC Civil Resolution Tribunal. In response, Hanington denied owing Lewis anything and said it was exempt from paying severance under the Employment Standards Act (ESA).
Here’s how the tribunal decided the case.
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Lewis began working for Hanington as a painter on May 2, 2022. The tribunal says his hiring package included an unsigned employment agreement, but both parties said the agreement accurately represented the terms of Lewis’ employment.
Hanington agreed to hire Lewis and pay him $20 per hour. The employment agreement the tribunal had in evidence did not include any terms about ending the employment.
Lewis said that on August 4, 2023, Hanington terminated the employment after a temporary layoff. Hanington didn’t dispute this claim. The employment record says the relationship ended because of a “shortage of work/end of contract or season.”
He argued that he was entitled to severance because he was dismissed without cause. Hanington did not refute that Lewis was dismissed without cause, but it argued under the ESA that it isn’t required to pay.
“I disagree,” the tribunal said in its decision.
“I find Mr. Lewis is not claiming compensation under the ESA. He is claiming compensation for damages under the common law.”
The tribunal added, “Instead of providing a reasonable amount of notice, an employer normally pays the employee as if they worked the notice period. This is commonly referred to as severance. The amount of severance is based on the reasonable amount of notice an employer should have given an employee and is measured in weeks or months.”
Ultimately, the tribunal found that Lewis was entitled to three weeks’ pay, totalling $2,880. After CRT fees were factored in, Hanington was ordered to pay $3,030 within 15 days of the tribunal decision.