Can a BC Employee Sue You While Still on the Job?

If one of your employees hired a lawyer and sent you a demand letter or filed a lawsuit while still showing up to work, your instinct might be to terminate immediately.  A September 2025 BC Supreme Court decision says that could be a costly mistake.

The Adrain Decision: What Happened

In Adrain v. Agricom International Inc. (2025 BCSC), the court examined whether an employer had just cause to terminate an employee who sent demand letters and commenced wrongful dismissal litigation while still employed.  The employee had 30 years of service, no performance issues, worked primarily from home, and explicitly indicated her willingness to keep working. The court found no just cause for the termination triggered by the demand letters.  The letters were framed as invitations to negotiate, and the court saw no reason such negotiations could not take place during an ongoing employment relationship.

No Bright Line Rule in BC Employment Law

This decision reinforces a critical principle for BC employers: there is no automatic just cause rule when an employee sends legal demand letters or commences litigation.  Courts apply a contextual, proportional analysis, weighing factors such as:

• length of service and employment history;

• the employee’s role and level of responsibility;

• power imbalance between employer and employee;

• degree of interaction required by the job;

• tone and content of any communications; and

• stage of the litigation.

The Repudiation Exception

The court did find, however, that filing and serving a wrongful dismissal claim during a working notice period, after termination notice had already been given, constituted repudiation of the employment contract.  This narrowed the employee’s damages to approximately 12.5 months rather than the full 24-month entitlement the court would otherwise have awarded, resulting in lost salary and benefits compensation of $47,254.70.

What BC Employers Should Do

Receiving a demand letter or learning an employee has filed a claim is stressful, but a reactive termination can significantly increase your legal exposure.  Before taking any action:

• Do not terminate without legal advice.  What feels like an obvious response may constitute wrongful dismissal.

• Document everything.  Context is everything in these analyses.

• Assess the employment relationship objectively.  Is continued employment truly irreconcilable with the circumstances?

• Consider the stage of any proceedings.  Preliminary pleadings carry different weight than advanced litigation.

BC employers facing these situations can contact Derpak White Spencer LLP.  We work with BC employers to get ahead of employment issues before they escalate, helping you avoid costly litigation and make confident, informed decisions.

Contact: Alex Robertson | (604) 736-9791 | ar@dwslaw.ca 

Disclaimer: This article is not intended to serve as, or should be construed as legal advice, and is only to provide general information. Employment law is fact-specific. For advice about your specific situation, please contact us. The information for this article was compiled on April 2, 2026.