Written by: Benjamin R. Young & Justin C. Haack
Responding to a human rights complaint is time-consuming, costly, and disruptive for an employer. A recent decision from the Alberta Human Rights Commission provides a helpful reminder that employers may apply to dismiss a human rights complaint after the complainant rejects a fair and reasonable settlement offer.
What the Alberta Human Rights Act Says
Section 21(3) of the Alberta Human Rights Act allows the Director to dismiss a complaint when a complainant refuses to accept an offer that is fair and reasonable.1 Parties are able and encouraged to exchange settlement offers prior to the hearing of the complaint. Such offers may be made “with prejudice”, meaning the offer may be disclosed to the Commission and relied on in the proceedings to support dismissing the complaint.
Whether an offer is fair and reasonable depends on the circumstances of the complaint. There is a range of acceptable outcomes, and the settlement offer does not need to be at the highest end of that range to qualify as a fair and reasonable offer.2
The Decisions
In Lahoda v Canadian Natural Resources Limited, the employer made a with-prejudice settlement offer of $25,000 in general damages to resolve the dispute. The complainant rejected the offer, arguing that both the $25,000 amount and the requirement to sign a release were unreasonable.
The Commission concluded that the $25,000 offer was reasonable and dismissed the complaint. It also found nothing objectionable about requiring the complainant to sign a release as part of the settlement.
In Heggenstaller v Ensign Drilling Inc, the employer made a with-prejudice offer totaling $23,000, comprised of $20,000 in general damages and $3,000 for lost wages. The employee was employed at a drilling rig for less than two months. The nature of his employment meant the employer did not guarantee any shifts, hours of work, or recall to that particular worksite.
The Commission concluded that both the offer of general damages and lost wages were fair and reasonable. The offer for general damages was within the range of comparable awards. The offer for $3,000 in lost wages was fair and reasonable because it represented a reasonable compromise for an uncertain wage loss claim.
Why this Matters for Employers
The decision reinforces that employers have tactical options to dismiss a human rights complaint early and without payment of any damages. Settlement is encouraged and employers should consider whether and when to make a fair and reasonable settlement offer.
The appropriate amount and terms will depend on the facts, the alleged harm, the available evidence, and the remedies that could reasonably be awarded. Employers should obtain legal advice before making an offer to ensure that its value, wording, and release terms are appropriate for the circumstances.
Speak with an Employment Lawyer
If your organization has received a human rights complaint, early legal advice will help you assess the allegations, preserve relevant evidence, consider accommodation issues, and evaluate resolution options. The lawyers at McCuaig Desrochers LLP routinely advise employers on workplace accommodation, discrimination complaints, and settlement strategy.
Contact a member of our team to arrange a consultation and discuss how this decision, or other developments in Alberta human rights law, may affect your organization.
This article is for general information only and is not legal advice. Advice should be obtained for your organization’s specific circumstances.
1 Alberta Human Rights Act, RSA 2000, c A-25.5.
2 Lahoda v Canadian Natural Resources Limited, 2026 AHRC 115 at paras 29 and 53; Heggenstaller v Ensign Drilling Inc., 2026 AHRC 119 at para 28