B.C. airport worker awarded over $208K for wrongful dismissal

Chu v. China Southern Airlines Company Limited

In this case, the Supreme Court of British Columbia awarded Paul Chu, a former employee at China Southern Airlines (CSA), more than $208,000 in damages after finding that he had been wrongfully dismissed.

The court agreed with Chu’s claim that CSA engaged in a “broad and sustained pattern of bad faith abusive conduct, including unfair discipline, insincere warnings, manufactured cause, and public embarrassment.”

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Facts of the case

• Chu begins working for China Southern Airlines as a contractor in 2008.
• In February 2011, Chu accepts full-time employment as the airline’s “Marketing and Business Development Manager” in B.C. The change takes effect beginning in or around April 2011.
• In January 2018, the General Manager (GM) of CSA’s Vancouver office is replaced with the GM at the company’s Toronto office.
• Shortly after taking control of the Vancouver office, Chu’s new GM eliminates the marketing department. Despite this, he isn’t fired.
• In February 2018, Chu is disciplined for attending industry events. Up to this point, he has a clear disciplinary record at the company.
• In March 2018, Chu is demoted to the position of “Account Manager” at CSA. His pay is unilaterally reduced by 25 per cent.
• On October 6, 2018, Chu is demoted again to the position of “Airport Operations Worker.”
• In January 2019, Chu is told by CSA that he isn’t “performing up to standards” at Vancouver International Airport (YVR). He is placed on a three-month probationary period.
• In the meeting minutes circulated shortly after, CSA alleges that Chu agreed to voluntarily resign if his job performance didn’t meet the requirements necessary for YVR. However, Chu argues that he didn’t make such claims to the airline.
• On February 1, 2019, Chu is fired for cause by CSA — effective immediately. In his termination letter, the company cites “time theft” and “completely unacceptable performance” at YVR. However, no specific details are provided on the time theft that Chu is alleged to have committed.
• At the time of his termination, Chu is 68 years old and earning $2,940 per month.
• Following his dismissal, Chu begins looking for alternate employment. Despite his efforts, he isn’t able to secure a new job before the trial begins.

The Court’s Decision

The B.C. Supreme Court found that Chu was wrongfully dismissed by China Southern Airlines.

After reviewing the timeline of events, Justice Frits E. Verhoeven agreed with his claim that CSA engaged in a “broad and sustained pattern of bad faith abusive conduct, including unfair discipline, insincere warnings, manufactured cause, and public embarrassment.”

As a result, the airline was ordered to provide Chu with $208,053 in compensation.

In addition to 20 months of severance pay, the court ruled that he was entitled to $100,000 in punitive damages as well as $50,000 for the mental distress he endured during this ordeal.

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Strong claim for constructive dismissal

In B.C., non-unionized workers don’t have to accept significant changes to the terms of their employment, such as a demotion or cut in pay. These types of modifications are illegal.

When negative changes are made to an employee’s job without their consent, the law allows them to resign and pursue full severance pay through a constructive dismissal claim.

While Justice Verhoeven found that Chu’s demotions would have formed a strong claim for constructive dismissal, he ultimately ruled that the changes were accepted by the employee.

As a result, the damages awarded by the court were based on Chu’s salary at the time of his dismissal ($2,940 per month) rather than the $3,980 per month that he was earning prior to the job changes.

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Termination for cause wasn’t warranted

CSA attempted to argue that the airline did have grounds to terminate Chu for cause — referring to his alleged incompetence at YVR and unauthorized absences.

After reviewing the evidence, the court concluded that he didn’t meet the conditions necessary for this type of dismissal.

Justice Verhoeven added that the allegations against Chu lacked merit and were manufactured by CSA in an effort to justify dismissing him without severance pay.

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“Abusive” conduct

During the trial, CSA abandoned the allegations it made against Chu in its Response to Civil Claim (RTCC), which was filed on November 1, 2019.

The claims included in the RTCC were far more serious than what was listed in his termination letter — ranging from fraud to sexual harassment in the workplace.

While these allegations weren’t relevant to the court’s analysis of whether Chu should have been fired for cause, they were crucial when it came to his claims for aggravated and punitive damages.

Justice Verhoeven found CSA’s conduct “highly blameworthy”, “abusive”, and requiring a “substantial need for deterrence and denunciation.”

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Lessons for employees

• If you are fired “for cause”, you may have been wrongfully dismissed: In most cases, non-unionized employees in B.C. don’t meet the requirements necessary to be fired for cause and are owed full severance, which can be as much as 24 months’ pay. If Chu didn’t challenge his termination, he would have missed out on thousands of dollars in compensation that he was legally entitled to. An experienced B.C. employment lawyer at Samfiru Tumarkin LLP can help you determine if you should have been fired for cause, enforce your workplace rights, and ensure that you receive the compensation you deserve.
• You don’t have to accept significant changes to your job: Large modifications, such as a demotion or a cut in pay, are illegal in B.C. If you refuse negative adjustments to the terms of your employment, and your employer proceeds with them anyway, contact an experienced employment lawyer at Samfiru Tumarkin LLP as soon as possible. It’s very likely that you can treat the move as a constructive dismissal and pursue full severance pay. If you wait too long to object to the change, or continue working following the modification, your employer could argue that you have accepted the new terms of employment.

Lesson for employers

• Always seek legal counsel before firing non-unionized staff: Employers shouldn’t terminate non-unionized workers in B.C. with or without cause prior to speaking with an experienced employment lawyer at Samfiru Tumarkin LLP. The decision to fire Chu for cause ultimately ended up costing China Southern Airlines more than $208,000 in damages. Each employment matter is unique. A thorough review by our team will ensure that laws aren’t being broken and that the employee’s rights have been taken into account.

Lost your job? Speak with an employment lawyer

If you are fired or let go for any reason, contact the experienced employment law team at Samfiru Tumarkin LLP.

Our lawyers in B.C. can review your situation, enforce your workplace rights, and ensure that you receive the compensation you are owed.