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ARTICLE · 11 NOVEMBER 2022

Setting The Record Straight On Probation Clauses

McMillan LLP
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Probation in the employment context is generally understood as a period during which the employee's suitability for continued employment is assessed

CanadaEmployment and HR

Probation in the employment context is generally understood as a period during which the employee's suitability for continued employment is assessed. Some employers mistakenly believe that a probation clause in an employment contract allows them to terminate a probationary employee during the probation period for any reason without notice or other obligation. Unfortunately, that is not the case in British Columbia.

Good faith assessment of suitability

While an employer need not establish just cause to terminate a probationary employee, an employer would need to show that it undertook a good faith assessment of the probationary employee's suitability for continued employment.

In Ly v. British Columbia, 2017 BCSC No. 43, the Court confirmed that in assessing whether an employer has acted in good faith, the Court will consider the employer's conduct in assessing the employee's suitability for continued employment in light of various factors, including:

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The foregoing provides only an overview and does not constitute legal advice. Readers are cautioned against making any decisions based on this material alone. Rather, specific legal advice should be obtained.

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