BC Court Reduces Wrongful Dismissal Damages After Employee Sues During Working Notice
On September 23, 2025, the Supreme Court of British Columbia released its decision in Adrain v. Agricom International Inc., 2025 BCSC 1842, a significant wrongful dismissal ruling with major implications for employers who use working notice.
The Court confirmed the employer did not have just cause to terminate a 30-year employee. But because the employee filed a lawsuit before the end of her working notice period, the Court found she had repudiated the employment contract, drastically reducing her damages.
For B.C. employers, the message is clear: even well-intentioned terminations can lead to litigation and financial risk if working notice isn’t handled carefully.
The Facts: Long-Service Employee Sues During Working Notice
- Employee: Larraine Adrain
- Employer: Agricom International Inc., a small commodities trading firm
- Employment Length: ~30 years
When the company’s owner prepared to retire, he offered Ms. Adrain the chance to buy the business or wind it down. Shortly after, her lawyer sent two demand letters seeking $200,000 (24 months’ pay) in severance.
Agricom responded by providing 13 months of working notice, not severance pay, with her employment set to end in May 2026.
Unhappy with this offer, Ms. Adrain filed a wrongful dismissal claim before the working notice expired. Agricom then terminated her immediately, arguing the lawsuit destroyed the trust necessary for continued employment.
What the Court Decided
1. No Just Cause to Terminate
The Court rejected Agricom’s argument that the demand letters or lawsuit constituted just cause. Seeking legal advice and pursuing legal remedies even during employment is not misconduct.
“It was not objectively reasonable for Agricom to be ‘shocked’ by the letters,” Justice Brongers noted. “The correspondence was professional, respectful, and part of a legitimate negotiation.”
The Court also recognized the power imbalance: Ms. Adrain was the company’s only employee and had no realistic leverage beyond legal action.
2. Filing a Lawsuit = Repudiation of Contract
Although Agricom lacked just cause, the Court agreed that filing a wrongful dismissal claim while still employed constituted repudiation.
Citing Suleman v. BC Research Council and Giza v. Sechelt School Bus Service Ltd., the Court held that suing before the end of the working notice shows an intention not to be bound by the employment relationship, allowing the employer to treat the contract as repudiated.
3. Damages Significantly Reduced
Both parties agreed that 24 months’ notice was reasonable under common law, given Ms. Adrain’s age, tenure, and position. Agricom’s 13-month working notice fell short of that standard.
However, because Ms. Adrain repudiated the employment contract partway through the notice period, the Court reduced her damages accordingly. She was entitled to a total of 11.5 months’ notice, accounting for the working notice already provided. After deducting amounts already paid, the Court awarded $47,254.70 in remaining damages.
As Christopher Achkar, employment lawyer and founder of Achkar Law, explains:
“Even with the best intentions, employers can face unexpected liability when employees challenge decisions made during working notice. Getting proper legal advice before, during, and after termination helps protect your organization and ensures fairness in every step.”
5 Key Lessons for B.C. Employers
1. Manage Working Notice Proactively
- Working notice is lawful under section 63 of the Employment Standards Act (ESA), but it must remain practical. If the employment relationship deteriorates due to hostility, legal action, or a communication breakdown, switching to pay in lieu may be a safer option.
💡 Tip: Keep detailed records of all conversations and offers during the notice period. If issues arise, seek legal advice before reacting.
2. Lawsuits During Working Notice Can Trigger Repudiation
- An employee who sues before their last day may be seen as repudiating the contract. This can reduce or even eliminate further damage. Employers should document all developments and get legal guidance on next steps.
3. Treat Legal Demands Professionally
- The Court criticized Agricom for overreacting to standard legal correspondence. Letters from counsel are part of the negotiation process, not insubordination. Employers should remain professional, respond in writing, and refrain from taking retaliatory action.
4. Understand “Just Cause” vs. “Repudiation”
- Just cause: Serious misconduct (e.g., theft, harassment) that justifies immediate termination.
- Repudiation: Conduct showing an intent not to be bound by the employment contract, such as suing during working notice.
Recognizing the difference helps employers choose the right legal response and avoid unnecessary liability.
5. Check Both ESA and Common Law Notice Obligations
- The ESA sets minimum notice periods, but common law often entitles employees to significantly more, especially long-service staff. Before providing working notice, ensure the offer meets both standards.
Why Early Legal Advice Matters
This case shows how quickly a cooperative termination can escalate into costly litigation.
Employers who consult counsel before issuing notice or reacting to legal demands can:
- Confirm whether working notice or pay in lieu is the safer option
- Avoid constructive dismissal or bad-faith claims
- Plan communication strategies that reduce conflict
- Respond appropriately to lawsuits or legal letters
Key Takeaway: Even when termination is lawful, missteps during the working notice period, like mishandling legal demands or reacting hastily to litigation, can lead to costly disputes. Preparation, documentation, and legal advice are your best defences.
Protect Your Business Before a Wrongful Dismissal Claim Starts
Even well-intentioned terminations can become costly if working notice, severance, or employee communication is mishandled.
A single misstep, like responding poorly to a demand letter or failing to meet common law notice obligations, can expose your business to wrongful dismissal lawsuits, reputational harm, and six-figure liability.
At Achkar Law, we help employers across British Columbia stay ahead of disputes before they escalate.
Our team provides strategic, proactive legal advice to:
- Review and structure termination packages that comply with both the Employment Standards Act and common law;
- Draft enforceable contracts, notice letters, and severance offers that reduce litigation risk;
- Respond effectively to employee demand letters, lawsuits, or allegations of repudiation;
- Represent your business in wrongful dismissal claims, settlement negotiations, and court proceedings.
- Don’t wait until a claim is already filed by then; your legal options may be limited.
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. ©