Employers Beware: A Failure to Defend an Employment Standards Complaint May Have Implications in Other Forums

In the recent decision of Miciak v Sarah McLachlan School of Music, 2024 AHRC 114, the Human Rights Tribunal of Alberta (the “Tribunal”) affirmed that parallel matters adjudicated by Alberta Employment Standards may result in a finding of issue estoppel and the Employment Standards decision being accepted as final.

In a previous article, we explored the impact of Employment Standards decisions on civil actions. This case adds to the jurisprudence and informs that the principle of issue estoppel applies in the human rights setting.

Background

In this matter, Laurelle Miciak filed a human rights complaint against her former employer, Sarah McLachlan School of Music (the “Employer”), alleging discrimination in the area of employment practices on the ground of gender under section 7 of the Alberta Human Rights Act.

In addition to her human rights complaint, Ms. Miciak also filed two other complaints against the Employer in other forums: an occupational health and safety complaint alleging discriminatory action related to her reporting a health and safety concern and an Employment Standards complaint alleging that she was constructively dismissed and entitled to termination pay.

Alberta Occupational Health and Safety dismissed the discriminatory action complaint finding that Ms. Miciak was terminated for non-occupational health and safety reasons. The Alberta Labour Relations Board (“ALRB”) upheld the decision on appeal.

Alberta Employment Standards found Ms. Miciak to have been constructively dismissed and ordered the Employer to pay Ms. Miciak termination pay. The ALRB upheld the decision on appeal, and the Employer did not seek judicial review of this decision (the “ALRB Employment Standards Decision”).

At issue in this matter was the Director of the Alberta Human Rights Commission’s application for the Tribunal to apply issue estoppel and accept, as a finding of fact, the ALRB Employment Standards Decision that the Employer terminated Ms. Miciak’s employment.

The Employer opposed the application and raised the same argument that was rejected in the ALRB Employment Standards Decision – that Ms. Miciak was not terminated, but rather resigned.

Tribunal Decision

The Tribunal granted the application finding that Alberta Employment Standards, and the ALRB acting as the appeal body, routinely make findings of fact as to whether an individual was wrongfully dismissed or resigned. The Tribunal also found that there were sufficient procedural safeguards in place, especially considering the fact that the Alberta Employment Standards decision was appealed, to satisfy the test for issue estoppel (with no compelling reasons for the Tribunal to not exercise its discretion).

However, despite being bound by the ALRB Employment Standards Decision that Ms. Miciak’s employment was terminated, the Tribunal clarified that the issue of whether Ms. Miciak’s gender was a factor in the termination remained a live issue as that was not considered by either Alberta Employment Standards or the ALRB.

Takeaways

This decision is instructive insofar as standing for the proposition that issue estoppel can apply to parallel or related human rights and employment standards matters. This decision reinforces the importance of employers taking employment standards complaints seriously and advancing their best defence.