Promised position turned into months of unpaid work, court decides
The Alberta Court of Justice dealt with an employment matter where a licensed practical nurse argued she was induced to leave her secure position in New Brunswick after being promised financial stability and suitable compensation in Alberta.
She claimed that after nearly two years of employment, her employer began withholding wage payments without explanation.
Despite her attempts to resolve the payment issues through direct communication, she said the situation remained unaddressed, eventually leading her to bring the matter to Alberta Health Services' attention.
She further argued that shortly after raising these concerns, her employment was terminated with one month's notice but no pay in lieu, leaving her with significant outstanding wages and forcing her to accept a lower-paying position.
The court heard that during the COVID-19 health crisis, Alberta Health Services (AHS) needed to find methods to staff hospitals with trained medical staff, particularly those with specialised perioperative nursing training. The employer had a contract with AHS to assist with medical staffing purposes.
In October 2021, the worker was recruited from her position as a licensed practical nurse in Moncton, New Brunswick. The court found that she and her husband relocated to Westlock, Alberta, during "a time of great uncertainty caused by the COVID-19 health crisis which in turn had created a significant global recession, severely impacting the healthcare industry in Alberta."
A Master Employment Agreement dated October 7, 2021, established key terms including an hourly rate of $60, overtime at $90 per hour, accommodation allowance of $2,000 monthly, and group health and dental benefits, amounting to an expected annual salary of $128,945.
The court found that the employment relationship proceeded without issue until August 2023, when the employer began failing to remit payments properly. According to the decision: "The facts reveal some invoices were either not paid in full or at all. There was no adequate explanation offered by [the employer] as to the delay or the partial payments."
From August to December 2023, the worker attempted to resolve the payment issues. As stated in the decision: "I am satisfied that this issue was never adequately addressed by [the employer] and reached the point where [the worker] brought the matter of the outstanding invoices to the attention of AHS."
The employer terminated her employment on December 1, 2023, effective December 31, 2023. By the end of her employment, she was owed approximately $30,000, with the court noting that "expenses for accommodations and utilities, overtime, fuel reimbursements, and the equivalent of her group health and dental benefits remained outstanding."
At termination, the 49-year-old worker resided in Westlock with her husband, separated from her adult children in New Brunswick. While she secured part-time employment at the Westlock Health Care Centre in January 2024 at $38 per hour, her earnings from January to June 2024 totalled $47,156.29, significantly less than her previous position.
The court considered COVID-19's impact on employment prospects, citing the case of Iriotakis v Peninsula Employment Services Limited: "The Courts have taken judicial notice of the impacts of COVID-19 and how it impacts the ability of employees to obtain new employment. The Courts have held that this warrants the lengthening of the reasonable notice."
After considering the inducement to relocate, her age, and the impacts of COVID-19, the court awarded six months' notice.
The court found the employer's conduct breached its duty of good faith, stating: "There can be no doubt that [an employer] has a duty of good faith to their employees... there is no more important or essential element from [the worker's] perspective within the employment contract than to be paid on time and in the correct amount."
The decision awarded total damages of $75,231.51, comprising $30,843.51 for damages in lieu of dismissal, $14,388 in unpaid wages, and $30,000 in aggravated damages. The court explained:
"The extreme anxiety associated with [the employer's] non-payment and/or delay of payment would have been extremely stressful... this conduct was deplorable and without question a breach of the duty of good faith."
The court concluded by addressing the power imbalance, noting: "[The employer displayed] an obstreperous and unreasonable refusal... to comply with the most basic requirements of employment contracts - payment of wages to [an employee] - and in so doing displaying a power imbalance that was permitted to exist leading to the commencement of this action."
