Ask a Lawyer: Employment Law

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Under Financial Duress

Lewis Hennig (Gibbons)

A co-worker at work is advising people that if there is a workplace policy they disagree with but have to abide by in order to remain employ they can sign the contract and put UFD (Under Financial Duress) under their signature to avoid any consequences by not following said policy they signed.

That really sounds wrong to me, but I don't know the legality of it. I don't want people losing their jobs by following this advice and then getting canned as a result, but I don't know enough to say otherwise.


0 12 months ago

Anonymous Lawyer (Edmonton)
   Verified Lawyer

You can always claim duress to invalidate a contract, but it takes fairly extreme circumstances to prove duress. Duress usually requires that the pressure applied meant the person had no other choice but to submit, and that the pressure applied was illegitimate. For example that might be where the employer threatened to breach the employment contract unless the employee agreed to different terms. Disagreeing with or disliking a policy isn't enough on it's own. I would recommend consulting a lawyer about the specific policy.

If someone is alleging duress, part of the test is whether they protested and took steps to avoid it afterwards, so writing "under financial duress" and resisting might help to prove that. The problem though is that their employer can still fire them for deliberate disobedience, and they may not be entitled to compensation for wrongful termination if they can't prove duress, writing UFD might even help the employer prove that the conduct was deliberate. Writing UFD definitely doesn't mean that they don't have to follow any agreements/policies whatsoever.


0 12 months ago

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