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Court Confirms Grievance Process Overrides Civil Claims
When a workplace dispute arises, can a federal employee skip the internal grievance process and sue a co-worker directly in court? The Ontario Divisional Court recently said no in Bala v. Vanrivong, 2025 ONSC 5800, reinforcing that federal employees must resolve employment-related disputes through the grievance system, not through civil courts.
This case offers an important reminder for Ontario employers about jurisdictional limits and the importance of following proper dispute resolution procedures in the workplace.
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Get Help Managing Workplace DisputesThe Case at a Glance: What Happened?
Bobby Bala, a parole officer with the Correctional Service of Canada (CSC), sued a former co-worker, Amy Vanrivong, for defamation in Small Claims Court. Bala claimed Vanrivong shared false statements about her online following a workplace conversation, damaging her reputation and making it impossible for her to continue working at CSC.
Vanrivong asked the court to strike the claim, arguing that the matter fell under the Federal Public Sector Labour Relations Act (FPSLRA), legislation that provides a comprehensive grievance process for federal public servants. The Small Claims Court agreed, finding it had no jurisdiction because employment-related disputes in the federal public service must be addressed through the grievance process, not through civil litigation.
Bala appealed the decision and sought to introduce fresh evidence, arguing that she had not filed a grievance and that the alleged defamation was a personal matter outside her employment relationship.
As Christopher Achkar, employment lawyer and founder of Achkar Law, explains:
“This decision confirms that when federal grievance procedures apply, employers must follow the correct process or risk unnecessary litigation and jurisdictional disputes. Before responding to a claim or making employment decisions in federally regulated workplaces, employers should speak with an employment lawyer to protect their rights and ensure compliance.”
What the Ontario Divisional Court Decided
The Divisional Court dismissed the appeal and upheld the original decision. Justice Marc Smith confirmed that even if Bala had not filed a grievance, the grievance process under the FPSLRA still applied, and therefore, the Small Claims Court lacked jurisdiction to hear the claim.
Key Findings:
1. Grievance Rights Replace Civil Actions
Section 236 of the FPSLRA states that the right to grieve is “in lieu of any right of action.” If a dispute arises from employment, an employee cannot bypass the internal grievance system by suing in court.
2. Employment Connection Was Clear
The alleged defamation stemmed from workplace interactions between colleagues and directly affected Bala’s employment. The Court found the dispute was clearly employment-related, not a personal dispute.
3. Failure to Grieve Does Not Restore Court Jurisdiction
Even if an employee does not use the grievance process, the court still lacks authority to decide workplace disputes that fall under the FPSLRA.
4. Ineffective Legal Representation Was Not a Valid Ground
Bala argued that her representative mishandled her case, but the Court noted such claims must be pursued separately as professional negligence actions. In any case, it would not have changed the outcome.
In the end, the Court dismissed both the motion to admit new evidence and the appeal, confirming that the Small Claims Court’s dismissal was correct.
Why This Case Matters for Ontario Employers
While this case involves a federal employee, it reinforces a broader principle important for Ontario employers: understanding where employment disputes should be heard and ensuring proper processes are followed.
1. Internal Procedures Take Priority
When a dispute arises under a collective agreement or statute, internal or statutory grievance procedures usually take precedence over court action. Employers should ensure employees are aware of these procedures and that they are clearly documented.
2. Jurisdiction Matters
Not every workplace dispute can proceed in court. Employers should confirm whether a matter falls under employment standards, human rights, or grievance mechanisms to avoid jurisdictional challenges.
3. Proper Documentation Protects Employers
The Court relied heavily on workplace records and evidence of internal procedures. Maintaining thorough documentation of complaints, responses, and outcomes helps protect employers from future legal exposure.
How Achkar Law Helps Ontario Employers
At Achkar Law, we advise employers across Ontario on how to handle workplace disputes efficiently and in compliance with applicable laws. Our lawyers help:
- Determine whether a workplace dispute belongs in court, before a tribunal, or under a grievance process
- Develop clear internal dispute resolution procedures
- Defend against employee claims, including defamation or harassment allegations
- Ensure compliance with employment and labour law obligations
Don’t Let Workplace Disputes Turn Into Legal Problems
Protect Your Organization With the Right Process
Whether you’re dealing with employee complaints, defamation concerns, or breakdowns in the workplace, how you respond matters. A structured approach can prevent escalation and reduce liability.
Call 1-800-771-7882
Get Help Managing Workplace DisputesThe article in this client update provides general information and should not be relied on as legal advice or opinion. This publication is copyrighted by Achkar Law Professional Corporation and may not be photocopied or reproduced in any form, in whole or in part, without the express permission of Achkar Law Professional Corporation. ©