Gas station manager fired after 69 cent screw-up: Severance owed?

At a time when gas prices are seemingly at an all time high, customers at a California Shell station probably thought they hit the jackpot when they filled up their tanks at a steal of 69 cents per gallon. As it turned out, the bargain came at the price of the gas station manager’s job.

In an unfortunate turn of events, John Szczecina mistakenly put the decimal place in the wrong spot when attempting to update the price of fuel to $6.99 per gallon. Once the mistake was realized three hours later, the gas station was out $16,000, and Szczecina was out of a job.

“It’s my fault, I’m to blame,” Szczecina told CBS News, though his sister has suggested that the error was due to a computer glitch. She also said her brother is fearful of being sued by Shell over his blunder.

Severance pay after making a mistake

While the manager’s mistake was certainly a costly one, the fact that he was fired from his job might have resulted in a severance package – if he was employed in Canada.

In all but one U.S. state (Montana), they have what is called “at will” employment; anyone can be fired or let go at any time for any reason, without advance notice or severance pay.

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That is not the case in Canada, where an employee is owed a severance package when they lose their job – unless they have committed some sort of serious misconduct. When that occurs, an employer can dismiss the employee for cause and without pay. This kind of termination – often called the capital punishment of employment law – has a very high legal threshold that needs to be met, which is rarely the case. A mistake on the job, especially an honest and isolated one that is not hidden by the employee, is generally not enough to meet this threshold.

The result is that most employees in Canada are let go without cause, and a proper severance package must be provided. The amount of severance someone should receive can be as much as 24 months’ pay, and is influenced by numerous factors.

Employers should discipline first

Before an employer can fire an employee for cause and deny them a severance package, they must give them a reasonable opportunity to correct their behaviour.

They would be best advised to impose discipline of increasing severity in response to incidences of misconduct, which may include:

• A verbal warning
• A written warning
• A 1-day suspension
• A 3-day suspension

When a single mistake may be enough

There are instances where one singular act of misconduct may be so egregious that an employer would be legally entitled to terminate an employee for just cause. An honest mistake that costs an employer $16,000 may be a more persuasive argument, however an employer would likely face an uphill battle. Canadian courts dealing with employment cases are generally unsympathetic to arguments rooted in company’s financial losses.

On the other hand, if the mistake was one that posed a major safety risk to others, that would be a different story. That was not the case with Szczecina, who seems to have simply made an extremely regrettable error. Unfortunately for him, he works in a region that doesn’t provide this same employment rights that we enjoy in Canada.

Fired for making a mistake at work?

Were you fired for making mistakes while working in Ontario, Alberta or B.C.? Our skilled and respected employment lawyers have helped tens of thousands of non-unionized employees secure fair compensation.

Before you accept any severance offer or sign termination papers (and potentially give up your right to your full entitlements) talk to our team. Our goal is to provide you with the advice you need, the compensation you deserve.