In Lefebvre v. Gisborne Holdings Ltd., 2023 BCSC 2231, the BC Supreme Court had to decide whether the employer had dismissed Ms. Lefebvre, who had been hired pursuant to an 18-month fixed-term contract (the “Contract”) for cause.
Background
On June 24, 2022, Ms. Lefebvre had a heated telephone conversation with the employer’s largest client which she reported to Ms. Teunissen, her immediate supervisor. On June 30, 2022, Ms. Lefebvre was asked to attend a meeting with Ms. Teunissen and the Human Resources Manager (“HRM”). At this meeting, Ms. Lefebvre’s communications with the client was discussed, and the employer also alleged that some technicians had reported concerns about Ms. Lefebvre’s communication style.
After the meeting, the HRM sent an e-mail to Ms. Lefebvre and Ms. Teunissen summarizing what had been discussed. In response, Ms. Lefebvre sent a strongly worded email to the HRM on July 4, 2022. The e-mail was critical of Ms. Teunissen and Ms. Lefebvre alleged that she had not been treated with courtesy and honesty. This e-mail was copied to Ms. Teunissen, who found it to be “borderline insubordinate”.
On July 7, 2022, the employer terminated Ms. Lefebvre’s employment “effective immediately” and paid Ms. Lefebvre two weeks in lieu of notice. The termination occurred approximately six weeks into the term of the Contract.
At trial, the employer argued that it had terminated Ms. Lefebvre’s employment for cause, because her July 4, 2022, e-mail had irretrievably harmed the employment relationship. The employer argued in the alternative, that it had the right to terminate the Contract without cause prior to the end of the 18-month term.
Decision
The Court held that the employer did not have cause to dismiss Ms. Lefebvre and it’s response to Ms. Lefebvre’s e-mail had been disproportionate because: the e-mail did not rise to the level of insubordination that would support a for cause termination as it was not rude or unprofessional; Ms. Lefebvre had shared her concerns only with human resources; and she had not tried to undermine Ms. Teunissen’s authority by discussing the matter with other employees. The Court also noted that the employer had failed to consider the suitability of alternative disciplinary measures which included a failure to follow its own progressive disciplinary policy and a failure to warn Ms. Lefebvre that further conduct of this nature could lead to the termination of her employment.
In response to the employer’s argument that the Contract did not guarantee Ms. Lefebvre employment to the end of the 18-month term, the Court stated that the real issue was whether the Contract explicitly provided for an early termination without cause, which the Court found it did not.
Based on the above, the Court decided that it was appropriate to award Ms. Lefebvre contractual damages in the amount of $81,000, which was what Ms. Lefebvre would have earned had she worked to the end of the term.
Employer takeaways
- The employer bears the burden of proving just cause.
- Just cause is “employee behaviour that, viewed in all the circumstances, is seriously incompatible with the employee’s duties” and involves conduct “which goes to the root of the contract and fundamentally strikes at the employment relationship”.
- Dismissal for just cause must be proportionate to the misconduct considering all of the relevant circumstances. While there are exceptions, it is prudent, and generally necessary, to follow progressive disciplinary steps prior to dismissing an employee for cause.
- Pay attention to your own policies – if you have a progressive disciplinary policy, follow it unless the misconduct is so egregious that dismissal is the appropriate response because a continued employment relationship is impossible.
- If using a fixed-term contract, ensure that it contains a clear and unambiguous termination clause that permits you to end the contract prior to the end of the term without cause. The clause should clearly state the amount of notice or pay in lieu that the employee is entitled to in this circumstance, to avoid having to pay the employee for the full term.
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