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ARTICLE · 29 APRIL 2010

Employer Ordered to Pay Hefty Price for "Bad-Faith" Termination

McCarthy Tétrault
McCarthy Tétrault
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In a striking decision, Arbitrator O.B. Shime ordered an employer to pay over $500,000.00 in damages after the employer wrongfully terminated a unionized employee suspected of abusing sick leave.

CanadaEmployment and HR
Katharina Giesbrecht
Katharina Giesbrecht
Fazilah Hussain
Fazilah Hussain
Amelie Lavertu
Amelie Lavertu
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In a striking decision, Arbitrator O.B. Shime ordered an employer to pay over $500,000.00 in damages after the employer wrongfully terminated a unionized employee suspected of abusing sick leave. Extensive damages were awarded for the employer's "unreasonable" and "bad-faith" conduct.

Background

The employer, the Greater Toronto Airport Authority (GTAA) closely monitored employees on sick leave after a rash of costly fraudulent sick leave absences were discovered within the company.

The grievor had been employed by the GTAA for over 23 years with no record of discipline. Months after a work-related injury, she underwent knee surgery and was given an expected recovery time of four weeks. Unbeknownst to the company, the grievor was living with another GTAA employee who was under surveillance watch at the time for an unrelated disciplinary issue. The surveillance obtained by the company raised suspicions as to the legitimacy of the grievor's absence.

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