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Atlantic Employers’ Counsel – Winter 2013

REASONABLE PEOPLE DOING QUESTIONABLE THINGS: CONFLICTS OF INTEREST AND JUST CAUSE

Can a unionized employee moonlight in his off hours to earn some extra money by doing the same work he does for his daytime employer at cut rates? Can a high level executive take kickbacks for directing contract work to a friend? In both unionized and non-unionized environments, an employee who engages in a conflict of interest can lead to a just cause termination.

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CATCH ME IF YOU CAN: DEALING WITH FRAUDULENT MISREPRESENTATION OF QUALIFICATIONS OR CREDENTIALS IN THE WORKPLACE

It happens often. A potential candidate arrives at a job interview with a stellar curriculum vitae. She shares with you that she’s got a stable and secure job but might be interested in contributing to the success of your organization. Without hesitation or question, you decide that this is the person you’re looking for and an employment relationship is formed. Who didn’t hear about Yahoo’s situation with recent hire Scott Thompson when it was disclosed six months after the hiring that Thompson may not have had the qualifications set forth on this curriculum vitae.

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DUMB AND DUMBER: GET SMART ABOUT SERIOUS INCOMPETENCE

Every employer has a movie or two in the making based on the outrageous tales of its most incompetent employees.

Maybe the employee harmed a patient, lost a million dollars, angered a valued client, missed a critical deadline, or did something so dumb it put the company’s reputation at risk. Once an employee has demonstrated such incompetence, the employer usually loses confidence in the employee’s ability to do the job and is keen to terminate employment.

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WHOEVER SAID ABSENCE MAKES THE HEART GROW FONDER? THINGS TO CONSIDER ABOUT INNOCENT ABSENTEEISM BEFORE TERMINATION

One of the most frustrating, costly and challenging issues facing employers is chronic absence of employees. Culpable absenteeism, or absenteeism within the employee’s control, may very well constitute cause for dismissal, but this article focuses on termination of employees for innocent absenteeism, particularly caused by illness, disability, or other protected grounds under human rights legislation.

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LIAR, LIAR: DEALING WITH DISHONEST EMPLOYEES

Clarence Darrow is an unlikely inspiration for an employer-focused article about dishonest employees. However, Darrow captures a key truth about the employment relationship: the difference between honest and dishonest behaviour in the workplace isn’t easily discernible and can seriously impact your business.

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IT’S ALL IN THE ATTITUDE: INSOLENCE & INSUBORDINATION

One of the most challenging issues in the workplace is dealing with bad attitude and employees refusing to perform the work for which they were hired. Disruptive behaviour can take on many forms: outright refusal to carry out work, manifest non-performance, inappropriate comments, persistent complaints and non-verbal communication expressions of dissatisfaction (i.e., eye rolling, sighing, etc.). Employers dealing with employees who have a negative and disruptive attitude often consider dismissal for insubordination and insolence. What exactly are those two concepts?

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JUST CAUSE, DUTY OF FIDELITY AND BREACH OF TRUST

Every employee, at every level, owes a duty of fidelity to their employer. Although the extent of this duty depends on the particular circumstances of the employment relationship, all employees have a duty to act in a manner consistent with the employer’s interests (i.e. duty of loyalty). Where the conduct of an employee is dishonest and inconsistent with the employer’s interests, the trust in the employment relationship can be compromised and can amount to just cause for dismissal.

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TERMS OF “ENDEARMENT”: SEXUAL HARASSMENT AS JUST CAUSE FOR DISMISSAL – SEXUAL HARASSMENT IN THE COURTS

Sexual harassment is prohibited under all human rights legislation in Canada and employers have a duty to protect employees against sexual harassment in the workplace. This may, in certain circumstances, require dismissing an offending employee. Failing to protect an employee against sexual harassment by a co-worker may also lead to a constructive dismissal claim against the employer. For the purpose of this article, we look specifically at the issue of when an employee can be terminated for just cause when there is proven sexual harassment.

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Archive

Proposed Director Liability and Overtime Changes to the Nova Scotia Labour Standards Code

BY Rick Dunlop & Onye Njoku

By ​Rick Dunlop and Onye Njoku On September 8, 2026, Bill 256 (Labour Standards Code (amended)) was introduced for first reading in the Nova Scotia House of Assembly by the Honourable Nolan Young,…

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Back to school: What employers need to know about hiring international students

BY Brittany Trafford & Chiara Nannucci

By Brittany C. Trafford, Chiara Nannucci, and Erickson Miranda, Summer Law Student As university and college students head back to class this month, many international students will be applying for work. These students…

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Modernizing disclosure delivery: New online Access Model for delivery of financial disclosure documents

BY Andrew Burke & David Slipp & Noah Archibald

By Andrew Burke, David Slipp and Noah Archibald The Canadian Securities Administrators recently finalized a new “Access Model” that will change how reporting issuers can make financial disclosure documents available…

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Spoiler Alert!: The Supreme Court of Canada revisits spoliation of evidence in SS&C Technologies Canada Corp. v. Bank of New York Mellon Corp., 2026 SCC 29

BY Joe Thorne & Danielle Harris

By Joe Thorne and Danielle Harris For the first time in over a century, the Supreme Court of Canada has considered the impact and consequences where a litigant intentionally destroys…

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A changing tide: The Ontario Court of Appeal adopts a common-sense approach to interpreting termination clauses and provides much-needed guidance

BY Rick Dunlop & Jennifer Ronalds

By Rick Dunlop and Jennifer Ronalds There has been much uncertainty in recent years with respect to the enforceability of termination clauses in employment contracts. In Baker v. Van Dolder’s…

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Testing the limits: New developments in workplace drug and alcohol testing

BY Killian McParland & Onye Njoku

By Killian McParland and Onye Njoku A recent labour arbitration decision, Amalgamated Transit Union, Local 113 v Toronto Transit Commission, struck down the random drug and alcohol testing program of…

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Deed Transfer Tax not payable on Purchase of Securities – HRM v. Rank Incorporated

BY Robert Grant, K.C. & Sam Ward

Robert Grant, K.C. and Sam Ward In HRM v Rank Incorporated, 2026 NSSC 217, Justice John Keith of the Supreme Court of Nova Scotia determined that Deed Transfer Tax was…

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Early court decisions on generative AI: What Canadian businesses need to know

BY Matthew N. Craig

Matthew N. Craig and Sam Schonfeld Regardless of which industry you are a part of, you have likely noticed the adoption of generative artificial intelligence (“GenAI”) all around you. Increasingly,…

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Government of Canada introduces Protecting Privacy and Consumer Data Act

Sarah Dever Letson, CIPP/C, Maria Cummings, and Keeley A. Hussey On June 15, 2026, Bill C-36, An Act to enact the Protecting Privacy and Consumer Data Act, to amend the…

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PEI’s new Employment Standards Act is now in force: What employers need to do now

Murray L. Murphy, K.C., CPHR and Jacob E. Zelman In our earlier update issued in March 2025 (At a glance: Key changes coming to Prince Edward Island’s Employment Standards Act), we flagged…

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