Trial Win: Individual Fired For Cause Entitled to Full Severance Pay

Czerniawski v. Corma

In an outstanding win by David Vaughan, the Toronto employment lawyer at Samfiru Tumarkin LLP was successful in arguing that an employer did not have just cause to terminate our client’s employment.

Manufacturing company Corma Inc. argued that Mr. Czerniawski was not entitled to any severance pay after he was let go following a workplace incident. Ontario Superior Court disagreed with the employer, and awarded Mr. Czerniawski his full reasonable notice entitlements, which amounted to 19 months’ pay ($77,322.00) as well as an additional 10% in lieu of health and dental benefits.

Overview of the allegations for cause

When Mr. Czerniawski’s employment was terminated after 19 years of employment, Corma Inc. alleged it had just cause to terminate his employment based on vague allegations about him acting in a threatening manner in the workplace.The company also claimed that Mr. Czerniawski was insubordinate because he asked his employer to explain what he was being accused of, and resisted his employer’s order to leave the workplace until they provided him with an explanation as to what he did wrong.  Without investigating the matter any further, or giving him a chance to respond, Mr. Czerniawski was escorted from the premises by a police officer.

The court’s findings

The Court found that while Mr. Czerniawski was involved in a verbal dispute, Corma Inc. failed to establish that our client was acting in a threatening manner. Ontario Superior Court held that over Mr. Czerniawski’s 19 years of employment, there were no issues with his performance and management considered him to be a very solid, steady worker, although sometimes difficult with an occasionally challenging attitude. There was no prior history of discipline, threats, or violence. The court concluded that Mr. Czerniawski did not threaten, physically assault, or touch anyone in the workplace.

The court made sure to let Corma Inc. know that they had other, lesser forms of discipline available to it, including letting Mr. Czerniawski know that his conduct was inappropriate and that if he continued, his employment could be terminated. Ontario Superior Court also made it clear to the company that it should have told our client the particular allegations made against him and allow him a chance to respond to those allegations.

LEARN MORE
• Employment Law Show S4 E4: Performance Improvement Plans
• Ridiculous “For Cause” Terminations
• Severance Pay Calculator

Takeaway for employees

How to react to a termination for cause

If an Employer has alleged that your employment has been terminated based on an allegation of just cause, there are a number of things you should do immediately:

1. 1. Ask your Employer to provide full particulars (including the grounds for the just cause allegations, documentation, results of an investigation, etc.) of their allegation of just cause;
   2. Ask your Employer for a chance to defend yourself against the allegations, and if your Employer refuses to do so, send them an email confirming that you were not given a chance to explain yourself;
   3. Do not attend your Employer’s premises if they have told you not to;
   4. Do not accept any settlement offers and do not sign any paperwork before meeting with a legal representative; and
   5. Contact one of our lawyers or paralegals to assess your case, defend against the just cause allegations and help you negotiate a severance package.

Takeaway for employers

Conduct a full and fair investigation first

Do not dismiss an Employee for just cause without conducting a full and fair investigation, including the following:

1. Telling the Employee the basis for the just cause allegations;
2. Giving the Employee a chance to respond;
3. Interviewing all relevant parties; and
4. Reviewing all possible evidence.

Do not dismiss an Employee based on one instance of misconduct

You may fire an employee after one instance only if you are certain that the behaviour is egregious enough to meet the stringent just cause test. Consider not only the allegations, but the evidence you have to prove those allegations.

Start with a warning

Seriously consider giving the Employee a stern warning, or other form of discipline, short of dismissal, instead of terminating their employment.

Keep records

Keep accurate and robust records regarding the Employee and prior discipline.

Provide at least minimum severance if you can’t prove misconduct

If you are not certain that the employee was guilty of wilful misconduct, disobedience or wilful neglect of duty as defined by the Ontario Employment Standards Act, provide the Employee with their minimum termination and severance entitlements.

Read the Ontario Superior Court decision for Czerniawski v. Corma Inc.