Employer’s Bad Faith in Non-Payment of Wages Leads to Significant Damages

Taylor Janis’s own Sarah Levine represented the plaintiff in this monumental decision that sheds light on the consequences of an employer’s failure to meet basic contractual obligations, particularly in the context of wage payment.

Sarah breaks down the key aspects of this case, highlighting its significance for employees in Alberta’s evolving employment law landscape.

Rosenberg v Northern Nursing Solutions Inc. Overview

• The Plaintiff, a licensed practical nurse specializing in perioperative nursing, was recruited from New Brunswick to Alberta by Northern Nursing Solutions Inc.
• She moved based on promises of financial stability and entered into a Master Employment Agreement.
• The Defendant failed to pay wages from August 2023.
• The Plaintiff was terminated in December 2023 or pay in lieu of notice.
• The Employer did not defend the action in court.

Why This Decision Is Important

This case is significant for Alberta as it expands on the application of the duty of good faith in employment relationships, particularly regarding wage payment.

It demonstrates that courts are willing to award substantial damages for an employer’s failure to meet basic contractual obligations, even in relatively short-term employment situations.

The decision also highlights the impact of inducement and Covid-19 on notice periods, providing guidance for future employment disputes in Alberta.

Legal Issues Contemplated

1. What is the Plaintiff’s common law entitlement on termination?
2. Is the Plaintiff entitled to bad faith or aggravated damages from the Defendant, and if so, what is that amount?
3. Is the Plaintiff entitled to punitive damages from the Defendant, and if so, what is that amount?

Outcome

• The Plaintiff was awarded six months’ pay in lieu of notice of termination.
• The Plaintiff was awarded $30,000 in aggravated damages for the Defendant’s bad faith conduct.
• The Plaintiff was not awarded punitive damages but was awarded elevated costs.
• The Plaintiff was awarded $14,388 for accrued but unpaid wages.

Key Takeaways

• Inducement to leave secure employment can result in longer notice periods.
• Failure to pay wages and address employee concerns can constitute bad faith, leading to additional damages.
• The impact of Covid-19 on employability is a relevant factor in determining notice periods.
• Employers have a duty of good faith to correct known misapprehensions caused by their conduct.
• Courts may award significant damages even in cases where the employer does not defend the action.

References

Rosenberg v Northern Nursing Solutions Inc., 2024 ABCJ 220 (CanLII)
https://www.canlii.org/en/ab/abcj/doc/2024/2024abcj220/2024abcj220.html

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