A recent decision of the British Columbia Supreme Court (the “BCSC”) provides a useful reminder to employers that short service does not necessarily mean a short notice period for without cause termination.
In Ho v. Monk Office Supply Ltd., 2026 BCSC 1324 (“Ho”), the employee was terminated without cause after only two and a half months of employment. His employment contract did not include any express terms limiting his entitlement to notice on termination. As a result, the employee was entitled to “reasonable notice” at common law. The Court assessed “reasonable notice” as four months’ notice.
Notice for Short-Service Employees
The Court relied on the B.C. Court of Appeal’s decision in Saalfeld v. Absolute Software Corporation, 2009 BCCA 18 (“Saalfeld”). In that case, the Court of Appeal observed that, absent factors justifying a longer notice period, B.C. authorities suggested a range of two to three months’ notice for a short-service employee (under eighteen months’ service).
In Ho, the Court reviewed cases decided since Saalfeld and concluded that the two-to-three-month range should be understood as a starting point for short-service employees. An even longer notice period may be appropriate where there are compelling circumstances, including any factors creating an unusually lengthy search for replacement employment, commitments or representations made by the employer, or detrimental reliance by the employee in accepting the position.
Mr. Ho had experienced a lengthy search for comparable employment. It took him approximately five months to secure another position, and the new position paid substantially less. The Court concluded that this justified increasing the notice period from the usual starting range and awarded four months’ notice.
Takeaways for Employers
Four months’ notice for an employee with only two and a half months of service may not seem “reasonable”. The good news for employers is that this outcome was avoidable.
Termination liabilities for short service employees can be managed effectively using a written employment contract with an express termination clause. Express termination clauses can operate to lawfully limit termination notice obligations when done in a manner that is clear and compliant with employment standards.
Ho is also a valuable reminder of the importance of a properly drafted and enforceable employment agreement. Written contracts offer much greater certainty, and provide the opportunity to limit the scope of termination liabilities and the risk of costly wrongful dismissal claims.
If you have any questions about this article, please contact your Harris lawyer.
