SARC Insurance Risk Bulletin | Human Rights Complaints vs. Wrongful Dismissal – Different Paths, Same Exposure

Provided by Butler Byers Insurance – Feb 12, 2026

An Employment Risk Insight for Non-Profit Organizations

Employment-related disputes are among the most common and costly claims faced by non-profit organizations. These risks can be amplified by complex human rights obligations, unionized environments, and heightened scrutiny of employment decisions. Two of the most frequent claim pathways are Human Rights complaints and Wrongful Dismissal actions. While they follow different legal routes, they often arise from the same underlying employment decision and can create overlapping financial and reputational exposure.

Understanding how these claims differ, and how insurance responds, is essential for boards and management.

Understanding the Two Paths

Human Rights Complaints

Human Rights complaints are typically filed with the Saskatchewan Human Rights Commission. These claims focus on whether an employee experienced discrimination or harassment related to protected grounds such as disability, gender, age, religion, or family status.

Key characteristics:

• The emphasis is on discriminatory conduct, not termination pay.
• Claims can arise during employment or after termination.
• Remedies may include reinstatement, policy changes, training orders, and damages for injury to dignity.
• Legal costs can accrue early, even before any finding of wrongdoing.

Importantly, a termination that appears compliant from an employment law perspective can still attract a Human Rights complaint if discrimination is alleged.

Wrongful Dismissal

Wrongful Dismissal claims are civil actions, usually commenced through the courts. They assess whether an employee received appropriate notice or pay in lieu of notice upon termination.

Key characteristics:

• The focus is on contractual and common-law notice obligations.
• Damages are typically tied to compensation, benefits continuation, and sometimes aggravated damages.
• These claims often involve legal counsel early and can escalate quickly if settlement is not achieved.

While the focus of Wrongful Dismissal claims differs from Human Rights matters, they can still be expensive, particularly for long-service employees or senior roles.

One Decision, Two Claims

A single termination can trigger both:

• A Human Rights complaint alleging discrimination in the decision-making process
• A Wrongful Dismissal claim alleging insufficient notice or improper termination.

These matters may proceed in parallel, increasing defence costs, management time, and stress on leadership. Even when one claim is resolved, the other may continue.

Where Insurance Fits In

For organizations participating in the SARC Insurance Program, employment-related allegations typically fall under Non-Profit Organization Management Liability (Directors & Officers Liability) coverage. This policy is written on a claims-made basis, which carries specific reporting obligations.

Key insurance considerations:

• Timely reporting is particularly important.  Awareness of a Human Rights complaint, demand letter, or even a written allegation may constitute a reportable circumstance.
• Failure to report within the policy period can jeopardize coverage, even if the underlying incident occurred earlier.
• Defence costs often represent the largest exposure.

Early engagement with your insurance advisor is essential as soon as an employment issue escalates beyond routine HR management.

Practical Risk Management Takeaways

While insurance is a critical backstop, prevention and process remain the first line of defence:

• Ensure termination decisions are well-documented, objective, and consistent.
• Apply accommodation and performance management policies uniformly.
• Seek HR or legal advice before terminating employees.
• Train supervisors and managers on Human Rights obligations.
• Report potential claims promptly, even if liability is unclear.

Final Thoughts

Human Rights complaints and Wrongful Dismissal claims are different legal paths, but they often stem from the same employment event and expose organizations to similar financial and governance risks. For boards and executive teams, understanding this overlap and responding early can significantly reduce both cost and disruption.

This article is intended for general information purposes only and does not constitute legal advice. Organizations should consult legal counsel and their insurance advisor regarding specific circumstances.

Got questions? Want to see what the SARC Insurance Program can do for you?

Contact Hernard Chan or Lynn Cross at Butler Byers Insurance:

Phone: (306) 653-2233 or 1-877-467-7272 (INS-SARC)
Email: myinsuranceteam@butlerbyers.com