Canadian Employment Law Today

October 26, 2016

Focuses on human resources law from a business perspective, featuring news and cases from the courts, in-depth articles on legal trends and insights from top employment lawyers across Canada.

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GST #897176350 Published biweekly 22 times a year Subscription rate: $299 per year CUSTOMER SERVICE Tel: (416) 609-3800 (Toronto) (800) 387-5164 (outside Toronto) Fax: (416) 298-5082 (Toronto) (877) 750-9041 (outside Toronto) E-mail: Carswell.customerrelations @thomsonreuters.com Website: www.employmentlawtoday.com Thomson Reuters Canada Ltd. One Corporate Plaza 2075 Kennedy Road, Toronto, Ontario, Canada M1T 3V4 Director, Carswell Media: Karen Lorimer Publisher/Editor in Chief: Todd Humber Editor: Jeffrey R. Smith E-mail: Jeffrey.R.Smith@thomsonreuters.com ©2016 Thomson Reuters Canada Ltd. All rights reserved. Emplo y ment Law Today Canad ad a ian www.employmentlawtoday.com How would you handle this case? Read the facts and see if the judge agrees YOU MAKE THE CALL 8 YOU MAKE THE CALL Did the bank have just cause for dismissal? OR Should it have investigated further and given the employee another chance? IF YOU SAID there was just cause for dismissal, you're correct. e adjudicator found there was suffi cient evidence of misappropriation and dishonesty by Matta to support dismissal. It was unlikely Matta really believed his manager had authorized him to take the reward cards and even his story didn't convey such permission — a half-smile from the manager during the post-meeting activities left much to be clarifi ed. In addition, Matta was familiar with the reward card system and it was unlikely the manager would suddenly given him as many cards at once as he had earned in the previous three years — and after the meeting was over rather than in front of everyone, said the adjudicator. Matta's continued attempts to divert responsibility when the manager asked him about the cards was continued dishonesty that aggravated his misconduct, added the adjudicator. He was given the opportunity to explain by both the manager and the vice- president and instead failed to respond. His apologies only came after his job was in danger. In addition, his story to the support line that it was a joke was inconsistent with his explanation to management, said the adjudicator. "It is diffi cult to fi nd fault with the bank's conclusion that the misappropriation that occurred here, though of minor value, and Matta's subsequent disingenuous attempts to defl ect blame, irreparably damaged the trust necessary to sustain the employment relationship," the adjudicator concluded. See Matta and Royal Bank of Canada, Re, 2016 CarswellNat 4452 (Can. Labour Code Adj.). Bank employee plays his cards wrong THIS INSTALMENT of You Make the Call features a bank employee who was caught taking employee rewards cards. Magdi Matta was hired by Royal Bank of Canada (RBC) in April 2007 as an account manager in Toronto, responsible for open- ing accounts and selling products such as mutual funds, mortgages, lines of credit, loans and credit cards. He transferred to a new branch in October 2010 and was ap- pointed the senior account manager. RBC implemented a new employee re- wards program for the 2011 fi nancial year -- a system of reward cards distributed at the discretion of bank managers. Each reward card was worth 100 points and was given publicly to an employee to recognize perfor- mance achievements or behaviour. Reward points were deposited into online rewards accounts and could be used to purchase products from an online catalogue. Matta's manager received 80 reward cards per year based on the branch size, coming in two 10-packs each quarter. Matta received four reward cards in the fi rst three years of the program, though only one from his new manager who started in March 2013. On Sept. 19, 2013, there was a team meet- ing at Matta's branch. e meeting began with six reward cards presented to fi ve em- ployees — none of which were Matta. e manager left the remaining four cards from the pack on the podium with his other ma- terials after he introduced the next speaker. After the presentation, Matta went up to the podium to speak with the presenter and saw the four reward cards on the edge of the podium. While most of the staff were removing chairs and getting ready to open the branch for the day, the manager walked by and made eye contact with Matta. Matta asked "do these cards belong to me?" and, according to Matta, the manager gave him a half smile and continued on. Matta assumed that meant they did, so he put the cards in his breast pocket. A co-worker saw them and said to give her one, but Matta said they were meant for him. An employee who had received two cards at the meeting misplaced them and went to the manager to see if she could get new ones. e manager recalled he had left four cards on the podium and asked around. He learned Matta had been seen taking them. When the manager asked Matta if he had the reward cards, Matta didn't respond. A second query still didn't get a response, so the manager told Matta to pull up his reward account on the computer. Matta remained silent and wouldn't look the manager in the eye as he did so. Matta's online account showed he had de- posited 400 points a few days after the meet- ing. He then admitted he took the cards and apologized. e manager directed him to transfer the points back. Matta apologized again and said he would do anything, but the manager said he was disappointed and would have to report it to human resources. Matta later called RBC's confi dential employee support line and said he "made a joke" to his manager and took the cards and was now being accused of theft. RBC decided no further investigation was needed since Matta had acknowledged tak- ing the cards. It considered this a breach of trust that damaged the employment rela- tionship beyond repair, since Matta's posi- tion required a high standard. e manager gave Matta a termination letter on Sept. 30. He asked Matta again why he did it, but Matta still didn't have an answer. He asked if he could do anything to change it and was told no. Matta met with the regional vice-pres- ident a week later and said he thought the manager had given him permission to take the cards and he hadn't been given a chance to tell his side of the story. e vice-president didn't believe that a manager would give four reward cards to one employee and didn't be- lieve any further action was necessary.

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