The Alberta Court of Appeal offers further guidance on the principle of good faith in employment
View our colleagues' posts: titled "Incentive Plans in Alberta can still Limit Entitlements to ‘Actively Employed’ Employees" and "The Alberta Court of Appeal clarifies the organizing principle of good faith with style." These posts address the recent Alberta Court of Appeal’s decision in Styles v. AIMC, and will be of interest to employers in British Columbia as an example of how the courts may apply (or should not apply, as in this case) the common law principle of good faith in contractual performance in a wrongful dismissal case. This case also serves as a reminder that clear and unambiguous language in a contract may permit employers to limit incentive entitlements to only those employees who are actively employed on the day the incentive vests.
For more information on the common law principle of good faith in contractual performance and the general duty of honesty between contracting parties, read our colleagues’ article on the Supreme Court of Canada’s decision in Bhasin v. Hrynew (2014).