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ARTICLE · 04 DECEMBER 2020

To Terminate For Cause, Or Without Cause – That Is The Question

A recent New Brunswick Court of Appeal decision underlined the significance of alleging cause at the time of the termination, not after.

CanadaEmployment and HR

A recent New Brunswick Court of Appeal  decision underlined the significance of alleging cause at the time of the termination, not after.

Facts

The plaintiff employee had been employed by the defendant employer, RTO Asset Management (“RTO”) for nearly thirty (30) years, most recently as a Regional Manager. The trouble began in May 2017, when RTO was made aware that the plaintiff and a direct report were involved in a romantic/sexual affair. The direct report had been hired by the plaintiff in January 2016 and subsequently, promoted by him to the position of Store Manager, shortly thereafter.

Upon further investigation by RTO, a troubling set of facts regarding the plaintiff's misconduct came to light, including:

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