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Tagg Industries v. Rieder serves as a useful reminder of the importance of proving (and communicating to employees) a termination for cause , as well as the high threshold that employers must meet in such circumstances.
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Call Us at (613) 317-4614 Storing pornography on a work-issued laptop not “serious enough” to be cause for dismissal https://www.vwlawyers.ca/
Call Us at (613) 317-4614 Tagg Industries v. Riederserves as a useful reminder of the importance of proving (and communicating to employees) a termination for cause, as well as the high threshold that employers must meet in such circumstances. In this case, the company sued a former employee (that it allegedly fired for cause) seeking repayment of a $40,000.00 loan that was outstanding. The former employee responded in kind – counter-suing for wrongful dismissal damages and forgiveness of the loan. https://www.vwlawyers.ca/
Call Us at (613) 317-4614 The Employment RelationshipTagg hired Rieder in October 2014 pursuant to a written employment agreement. In October 2015, he signed a new employment agreement and Tagg gave him a $40,000 loan, for which he signed a promissory note. The parties agreed that Tagg would forgive the loan as of January 5, 2016 (the day that Rieder would be deemed to earn a $40,000 bonus).On December 4, 2015, Rieder was fired. Tagg alleged that it dismissed Rieder for cause as a result of him: deleting proprietary information from, and storing pornography on, a company laptop; misrepresenting his previous work title, responsibilities and salary; and him not performing work satisfactorily. https://www.vwlawyers.ca/
Call Us at (613) 317-4614 In light of the company’s failure in this regard, it is important for employers to ensure that if they are going to dismiss an employee for cause:- the misconduct forming the basis for dismissal is of such a degree that it “irreparably damages the trust essential to the employment relationship”;- the misconduct has been properly documented; and- they act promptly, and inform the employee of the reasons being relied upon to assert cause for dismissal. https://www.vwlawyers.ca/
Call Us at (613) 317-4614 Storing pornography on a work-issued laptop not necessarily cause for dismissalIn part, Tagg asserted cause for dismissal on the basis that an IT worker found that Rieder had a large amount of pornography on his work-issued laptop. The company, however, did not tender any evidence from the IT worker and instead relied on hearsay. As a result of this deficiency, the company lacked any admissible evidence to substantiate this allegation. https://www.vwlawyers.ca/
Call Us at (613) 317-4614 It should be noted that a finding of cause for storing pornography on a work laptop could, in the right circumstances, ground cause for dismissal. For example, the nature of the work environment or industry could make a material difference, as could the presence of an employer policy clearly prohibiting personal use of company assets or time theft. This case, however, is a useful reminder of the high threshold that must be met in order to substantiate an assertion of cause for dismissal. https://www.vwlawyers.ca/
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