Termination Gone Wrong: What Every Employer Can Learn From This $100K Ruling

Bad faith conduct in a termination can cost an employer, as the Canadian Border Services Agency recently discovered.

According to a CBC report, a federal labour relations board ordered the border agency to reinstate a senior employee and pay her more than $100,000 in aggravated and punitive damages to sanction its “egregious conduct” during the disciplinary process that resulted in her termination.

“The employer deceitfully disguised its failure to conduct a proper investigation, to give it the appearance of due process,” the Federal Public Sector Labour Relations and Employment Board said in its ruling on the matter.

According to the news report, the woman was fired after the agency blamed an import duty loss worth $26 million on her alleged negligence. However, the Labour Board wrote that the employer’s disciplinary process violated the principles of just-cause discipline, describing the investigation as a rush to judgement toward a “pre-determined conclusion.”

“While the reasons for the failure to investigate remain unclear, it is clear that the employer’s choices were well suited to shielding those other than the grievor,” the decision reads.

The decision serves as a reminder to employers of the importance of conducting thorough and unbiased investigations in disciplinary actions. Failure to adhere to principles of fairness can result in significant financial consequences, as well as legal orders to reinstate and compensate wrongfully terminated employees.

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