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The importance of workplace policies and workplace investigations

In the case of Bhasin v. Best Buy the Plaintiff was terminated for cause because he sold unactivated cell phones to more than one person.  The policy is that Best Buy stores limit the number of unactivated cell phones sales to one phone per customer.  This is because Telus, Bell, Rogers and Fido provide the cell phones to the store at reduced cost with the understanding that the phones will not be sold unactivated so that the carriers reap the income from the monthly phone service changes upon sale.  Best Buy did store audits and found that Store No. 605 was breaching the policy and dispatched a workplace investigator.  It is important to note that the Plaintiff was a computer manager and was not employed in the cell phone department.  Bhasin was simply filling in for the cell phone manager that was on vacation for two weeks.  The investigator interviewed the store manager who ultimately quit.  The Judge drew an inference that the store manager knew about and condoned the breaches of the cell phone policy in the store.  The cell phone sales manger was not interviewed and also quit.  The Judge also found that because the sales manager was not interviewed by the investigator, an adverse inference could be drawn that he was also aware of the breaches of the policy.  Eight employees were terminated in total and one of the employees went before the Ontario Relations Board.  He noted that “breaches occurred all the time.  We knew about the breaches.  Management told employees to go out and sell as many cell phones as you can and whenever you can”.  

The question in the case was whether or not the Plaintiff should have been dismissed with cause without knowing any specifics as to why he is being terminated and given an opportunity to respond to any specific allegation.  The Judge found that the onus was on the employer to show cause for summary dismissal (just cause).  Summary dismissal is a severe punishment which requires justification of misconduct of a very serious kind.  The burden on the Defendant is a heavy one.  The Judge relied on the McKinley v. BC Tel which notes that each case must be decided on some particular facts and circumstances.  You must consider the nature and seriousness of the dishonesty in order to assess whether it is reconcilable with sustaining employment relationship.  The Judge noted that the Plaintiff had not sold a cell phone in the ten years he spent with Best Buy.  He was not an employee of the cell phone department.  He was a computer manager.  He had general knowledge that the cell phone policy was being breached however, he was not told that the policy was being breached and he was not aware of any of the methods the associates were using to breach the policy.  The Judge found that he knew vaguely that the policies were being breached and he was in a difficult situation as it was not his department where the breaches were taking place and he was likely trying to protect the cell phone sales manager.  The cell phone sales manager was most likely trying to protect the store manager.  Further, the Judge found that rather then blaming the Plaintiff for what transpired in the case, the Defendant should have reviewed its own ineptitude and have properly investigated what was actually occurring at Store No. 605.  

The Judge found that it seemed the Defendant’s position was that the Plaintiff failed to be a whistle-blower therefore he deserved to be terminated with cause.  In hindsight, the Judge found that the Plaintiff believed he made a mistake.  He testified that had he been presented with the results of the investigation, and had he been told that associates were going to be terminated, he would have disclosed that management condoned the breaches rather than having the associates terminated with cause.  The Judge found that the Plaintiff did not intend to be dishonest or mislead his employer.  

Ultimately in this case, the Plaintiffs termination was disproportionate to the actions, facts and circumstances.  His years of exemplary employment did not deserve to end this way.  He was employed for almost 10 years, starting as a shipper and he rose the ranks to department sales manager.  At the time of this termination, he was a store manager in training.  A small percentage of employees reach this plateau and he always received commendation for his work with no negating factors.  Ultimately this case fell on improper investigation and improper store management.  It is important that management adhere closely to store policies and when breaches occur.  Actions must be taken immediately if violations are noted.

If you have any questions with respect to workplace investigations and/or termination for cause, please do not hesitate to contact Matt Lalande at Haber & Associates.  In the alternative you may fill out the contact form and Matt Lalande or another lawyer at Haber & Associates will get back to you without delay.