Despite the economic controversy, Alberta’s NDP government appears to be following through on its promise to increase the province’s minimum wage to $15 per hour by 2018. On October 1, 2015, the minimum wage in Alberta will increase from $10.20 to $11.20, with planned further increases in the years to come. Following this initial increase, Alberta will have one of the highest minimum wages in Canada.
The Supreme Court of Canada (“SCC“) has clarified and expanded the scope of “constructive dismissal”. In Potter v. New Brunswick Legal Aid Services Commission, the SCC held that placing an employee on paid administrative (i.e. non-disciplinary) leave can constitute constructive dismissal. The SCC determined that employers are required to act in good faith towards their employees and, unless explicitly authorized by the employment contract, employers cannot place employees on leave, even if paid, without providing legitimate business justification. Where an employer fails to do so, the suspension will be viewed as an unauthorized breach of the employment contract, amounting to “constructive dismissal” of the employee, who can then sue the former employer for compensation.