BC President Was Constructively Dismissed After Suspension
In Day v. Tahltan Central Government, 2025 BCSC 1363, the Supreme Court of British Columbia ruled that Chad Day, the elected President of the Tahltan Central Government (TCG,) was constructively dismissed when TCG’s board placed him on administrative suspension without following its own rules.
Although Day was an elected leader, he worked under an employment contract. The Court found that by ignoring the formal Director Accountability Process before suspending him, the Board breached an essential term of his contract, triggering a constructive dismissal.
This decision shows how failing to follow clear governance or workplace procedures can expose organizations to wrongful dismissal claims, even when they believe suspension is justified.
What Happened
- Chad Day had served as TCG President since 2014 under a series of fixed-term employment contracts.
- In late 2023, internal conflict grew within the Board, and several complaints were filed alleging misconduct and conflict of interest.
- On November 22, 2023, the Board voted to place Day on administrative suspension with pay, pending investigation.
- The Court found the Board:
- Skipped the required steps in the Director Accountability Process,
- Used complaints that were vague, stale, or lacked evidence, and
- Did not have the authority to suspend him unless it followed those steps first.
- Day resigned in March 2024, claiming constructive dismissal.
- The Court agreed and awarded $320,725 in damages.
Why This Matters to Employers and Organizations
This case underscores several critical points:
- Policies must be followed to the letter. If an organization has a suspension or disciplinary policy, it must be strictly followed. Skipping steps makes even a paid suspension risky.
- Procedural safeguards matter. Internal complaint processes should require timely, specific, and evidence-based complaints. Vague or stale complaints create legal risk.
- Elected or senior officials can still be employees. Courts may treat elected or high-level leaders as employees entitled to contractual protection.
- Suspension can trigger constructive dismissal. Even a suspension with pay can amount to dismissal if it breaches the contract or isn’t justified.
As Christopher Achkar, employment lawyer and founder of Achkar Law, explains:
“An improper suspension can put employers at legal risk and leave employees uncertain about their rights, speaking to a lawyer early can help protect both sides.”
How Employers Can Avoid This Risk
- Review and update your policies: Ensure suspension and complaint procedures are clear, lawful, and workable.
- Train boards and managers: Directors and executives should know how to properly handle internal complaints and disciplinary steps.
- Seek legal advice early: Before suspending or removing a senior leader, get legal guidance to confirm your authority and minimize risk.
- Keep politics out of discipline: Document reasons and evidence to show decisions are grounded in policy, not internal politics.
What Employees Should Know
- You have rights under your contract: Even if you are a senior or elected leader, your employment contract can protect you.
- Suspensions must follow the rules: If your employer doesn’t follow its own policies or the law, it could be a constructive dismissal.
- Act quickly if suspended: Seek legal advice early to protect your rights and preserve evidence.
While this case was decided in Prince George, British Columbia, it shows how courts across Canada will scrutinize an employer’s compliance with internal procedures especially when suspending senior staff.
Protect Your Workplace from Wrongful Dismissal Risk
The Day v. Tahltan Central Government decision shows how failing to follow your own policies can turn a suspension into a costly constructive dismissal claim. Even well-intentioned actions can create liability if they breach the terms of an employee’s contract or your organization’s procedures.
At Achkar Law, our employment lawyers help boards, management teams, and organizations review executive employment contracts, update disciplinary and suspension policies, and manage sensitive investigations.
We also guide employees through constructive dismissal claims when workplace policies are not followed.
Contact Achkar Law Before Suspending an Executive or Senior Employee
If your organization is considering suspending a senior leader or executive, speak with an employment lawyer first.
The Day v. Tahltan Central Government decision shows how even a well-intentioned suspension can expose employers to constructive dismissal claims and significant financial liability if workplace policies are not strictly followed.
At Achkar Law, we help BC-based employers and organizations:
- Review and update suspension and disciplinary procedures
- Ensure compliance with employment contracts and governance policies
- Minimize legal risk when handling executive or leadership suspensions
Our employment lawyers provide clear, practical advice before you take action so your organization stays compliant, fair, and protected.
Contact us today to speak with an employment lawyer experienced in executive suspensions and constructive dismissal matters in British Columbia.
The 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. ©