B.C. Decision Highlights Risks of Casual Employment Practices in Hospitality

Why It Matters

The case demonstrates that casual employment handling can generate multi‑month severance and punitive liabilities, pressuring hospitality firms to adopt rigorous HR and legal controls.

Key Takeaways

• B.C. court awarded $90,000 for wrongful dismissal at Black + Blue.
• Ambiguous termination clause triggered common‑law notice of 14 months.
• Misleading employer conduct added punitive damages.
• Poorly drafted contracts expose hospitality firms to large liabilities.
• Front‑line managers need HR training and vetted contract templates.

Pulse Analysis

The British Columbia Supreme Court’s ruling in DeCarlo v. 0894546 B.C. Ltd., involving the Black + Blue steakhouse, underscores a growing legal risk for the fast‑moving hospitality sector. Restaurants often rely on rapid onboarding and informal HR decisions, but the court’s $90,000 award for constructive dismissal demonstrates that casual practices can quickly become costly. High turnover and pandemic‑driven labour shortages have pressured managers to make hiring and termination choices without legal guidance, exposing employers to common‑law damages that far exceed statutory minima.

The crux of the decision lay in a poorly drafted termination clause. The offer letter used the term “include” instead of “in accordance with” and mistakenly wrote “proscribe” rather than “prescribe,” creating ambiguity that nullified the clause. Because the contract failed to expressly displace common‑law notice, the judge applied a 14‑month reasonable‑notice award, far higher than the one‑week‑per‑year standard under the Employment Standards Act. This illustrates how a single wording error can transform a routine exit into a multi‑month severance liability.

Employers can mitigate these exposures by instituting standardized, lawyer‑reviewed contracts and by training front‑line managers on basic employment law. Regular audits of template usage ensure that the correct language is applied consistently across locations. Moreover, a clear, documented process for termination decisions reduces the risk of bad‑faith conduct that can trigger punitive damages, as seen in the Black + Blue case. As the hospitality industry continues to scale, embedding robust HR governance is becoming a competitive necessity rather than a discretionary expense.