Are Employment Standards Findings Binding On Civil Matters?

The British Columbia Supreme Court's decision in Read v Rimex Supply Ltd, 2021 BCSC 2157 ("Read") addressed whether the doctrine of issue estoppel should apply to a just cause determination by the Employment Standards Branch ("ESB") and bar the defendant employer from advancing a just cause defence in a wrongful dismissal action.

Given the significant differences in the purposes, process and stakes involved in the two proceedings, the Court found that it would be unreasonable to deprive the employer of the opportunity to take advantage of the enhanced procedural safeguards available in the wrongful dismissal action and to properly makes its defence.

The plaintiff Director of Manufacturing, James Read, caused the defendant employer Rimex Supply Ltd. ("Rimex") to enter into a business relationship with Opus Group for cleaning and recruitment services in March of 2018. Upon learning that Read's wife became the sole director of Opus Group in December 2018, Rimex