Does someone owe you money? If so, then the first step is almost always to make a formal demand for payment in writing. If he or she does not pay then you may want to sue or follow up by some other method. Other methods include, for example, government agencies such as the Alberta Labour. You may also want to hire a lawyer or collection agency. Where you go and what you decide will depend on who owes you the money and how much is owed.
If you are owed money by your employer (or former employer) for wages already earned or vacation pay then you should call Alberta Labour: dial 310-0000 then dial toll free 780-427-3731. They will collect your money free of charge. If the company has gone bankrupt or is out of business then you may still be able to collect your outstanding wages because the directors of the company may be personally responsible up to a certain amount of money.
Alberta Labour can also help you to collect your “termination pay”. Termination pay is a minimum amount of money that your employer has to pay you if you have been terminated, unless you have been terminated for just cause. Just cause includes such things as theft. If there is no just cause then your employer must pay you approximately 1 week for every year of service when it terminates you (up to 8 weeks). The directors of the company are not responsible for your termination pay if the company has gone out of business.
Many employees are entitled to more than the minimum termination pay set out by the Employment Standards Code, especially if you are a professional or manager. This is commonly called “severance pay”. This can be as much as one month per year of service and there may be a minimum of 3 months in limited circumstances. To collect on severance pay then you have to sue in the Courts.
If someone owes you money for goods or services provided, other than employment, then you have to go to Court. There are no government agencies to help you collect on such a debt. If you do not have a written contract then you may still be able to collect on your money in court. It is always best to have a written contract, but it is not necessary. For example, if you delivered bread to a restaurant for two years with regular payments following each delivery and the restaurant decided not to pay one day then you would have a pretty good argument that you and the restaurant had a contract to deliver bread.
The court system can be confusing, but if you keep in mind a few simple rules then it is easier to navigate. If you are owed $25,000.00 or less then you can go to small claims court, which is formally called the Provincial Court (Civil Division). Small claims court has a simplified procedure and relaxed rules of evidence so you do not need a lawyer, although you can hire one if you want. All the forms and an explanation guide can be found at the Alberta Courts website at: www.albertacourts.ab.ca . The website will explain what form to use, how to fill it out and where to deliver it. You can even rent a video at the court house library on how to present your case. You can also call them at 297-7411 to get basic information, but they will not give you legal advice.
If someone owes you more than $25,000.00 then you will likely need to hire a lawyer. Cases in this category must proceed in the Court of Queen’s Bench of Alberta. This court has complex rules of procedure and evidence that must be followed.
If the person who owes you money has gone bankrupt then you need to talk directly with the person’s trustee. There is no point in going to court, as the judge cannot do anything for you. The trustee, however, may be able to get you a share of what that person owns, if anything.
If you don’t have the time or patience to figure out the court system, then you can always hire a lawyer or collection agency. Collection agencies can be effective and cheap because they often work on a contingency or commission, whereas many lawyers will not for smaller amounts of money.
Darryl A. Aarbo
If you wish to send in a letter, please email it to legaladvice@gaycalgary.com. Darryl A. Aarbo can be directly reached at Courtney Sebree Aarbo, Barristers & Solicitors, 1138 Kensington Road NW, Calgary, Alberta, T2N 3P3. Visit their website at http://www.csalaw.ca. Phone (403) 571-5133. Fax: (403) 571-5134
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