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ARTICLE · 21 MAY 2018

Security For Costs In Employment Cases

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A motion for security for costs has potential to cause trouble for an employee, and can offer many benefits to a defendant, in the right circumstances.

CanadaEmployment and HR
Paul Brooks
Paul Brooks
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A motion for security for costs has potential to cause trouble for an employee, and can offer many benefits to a defendant, in the right circumstances. It can result in the employee having to post security for the defendant's costs, and can deter frivolous and vexatious claims, as well as some meritorious but modest claims from continuing.

On the other hand, the recent case of Lafantaisie v Elgin Motor Freight Inc., illustrates that security for costs motions can waste time and money for an employer when brought in the wrong circumstances.

In Lafantaisie, the employer sought an order requiring the employee to post security for costs in the amount of $35,000.00 in order to continue her modest constructive dismissal action.

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