Lululemon Workers Fired For Chasing Burglars: 640 Toronto Interview with Lawyer

Interview Summary

Two former Lululemon employees were fired from their positions after they chased burglars from their store. The CEO Calvin McDonald stands by his decision and states it was due to a breach of store policy and safety concerns. Are the former employee’s owed severance pay? How should employers discipline employees who have discarded company policy?

Lluc Cerda, an employment lawyer and Senior Associate at Samfiru Tumarkin LLP joined Kelly Cutrara on 640 Toronto to answer these questions and more on employee rights.

Interview Notes

• Common occurrences to discipline employees: Luluemon seemed to have a policy in place for employees in the event of a robbery. Lululemon employees were expected not to engage with the suspects and allow the theft to continue as a safety policy. The terminated employees were found to have breached company policy explicitly.
• Terminated “for cause”: The employees at Lululemon were terminated for cause and so were not offered any severance pay. In Ontario, it is very difficult to terminate an employee for cause. Employers must prove that employees have exhibited serious misconduct and there are no alternative measures of discipline available.
• Employee argument against termination: Employers must establish that a company policy regarding specific behaviour has been in place in order to justify a termination. Policies must also be made aware to all employees and ongoing training should be implemented by employers.
• Responsibilities of an assistant manager: An employee in a management position would be expected to follow company policies as part of their daily responsibilities.