Terminating employees for cause: lessons from the Canadian healthcare sector

January 05, 2014 0 COMMENTS

By Ian Campbell

It seems to be increasingly difficult to justify terminations for cause—even when an employee is found to have engaged in serious misconduct. read more…

Breaching duties and cashing checks: An employee’s entitlement to bonuses after termination

October 14, 2012 0 COMMENTS

by Marisa Victor and Christopher Copeland

Can a Canadian employee who is fired for cause sue for outstanding bonuses? What about if those bonuses relate to the period of the employee’s wrongdoing? This was the issue in Mady Development Corp. v. Rossetto, when a terminated executive sought to claim his bonuses for a period when he was found to be misappropriating company resources.

Facts

Leonard Rossetto was employed as an executive with a group of corporations (Mady). In fall 2007, he diverted labor, materials, and funds from Mady to renovate his house. He was fired on December 12, 2008, when Mady discovered his wrongdoing. Mady then sued him to recover the misappropriated corporate funds and resources. Rossetto counterclaimed for his bonuses for 2007 and 2008. Pursuant to his employment contract, he was entitled to an annual bonus equal to 30 percent of Mady’s profits after overhead. The parties ultimately submitted their dispute to arbitration. read more…

When what’s good for business isn’t good employment law: What warrants termination for cause?

September 30, 2012 0 COMMENTS

by Kyla Stott-Jess

Is a Canadian employer justified in terminating an employee for cause when that employee has disobeyed company policy? What if the consequences of the employee’s failure to follow policy put other employees at serious risk of harm? Not necessarily, said the Ontario Supreme Court recently in Barton v. Rona Ontario Inc.

Rather, the potential severity of any misconduct must be balanced against the employee’s attitude and past history when evaluating whether termination for cause is warranted.

Background

Kerry Barton was a longtime employee of Rona until the company fired him for cause in 2009. At the time of termination, Barton was the assistant store manager in Barrie, Ontario, and was responsible for managing about 140 employees. He had received good performance appraisals and had no disciplinary record. read more…