Motorists in Rancho Cordova, Calif., were pumped when the sign at a local Shell gas station showed 69 U.S. cents per gallon.
The bargain was also a shock to the station manager, John Szczecina, who put the decimal point in the wrong spot when pricing gas for the day, according to an ABC affiliate local news station.
Once the mistake was discovered, the gas station was down nearly $20,000, according to a GoFundMe page set up to help pay back the price difference — and Szczecina was out of a job.
The unlucky employee told a local news reporter that he was to blame for the blunder, while his sister wrote on the GoFundMe page that the error was due to a glitch in the gas station’s software.
Severance pay for making a mistake in Canada
Although Szczecina’s mistake was certainly a costly one, if this were an isolated incident, and it was truly a mistake, he would likely be owed a severance package — if he had been working in Canada.
Many U.S. states, including California, have what’s called at-will employment, which means that anyone can lose their job for any reason without notice or severance pay.
READ MORE: Fired for no reason? Employment lawyer explains why your employer can do that
This is not the case in Canada. North of the border, an employee is owed a severance package when they are fired or laid off, unless they have committed some sort of serious misconduct that would give rise to what is called a termination for just cause.
A dismissal for just cause, however, has a very high legal threshold. A mistake — especially a singular, honest one that is not covered up by the employee — does not meet the high bar for this definition.
When an employer doesn’t have legitimate cause to fire someone, we have what is called a termination without cause. This kind of termination allows an employer to cut an employee loose for practically any reason — except discriminatory ones — so long as the correct amount of severance pay is provided.
Severance is calculated using multiple factors and can total as much as 24 months’ pay.
A wrongful dismissal claim through an employment lawyer is triggered when a company doesn’t fulfil its legal obligation to offer appropriate compensation, which, in my experience as an employment lawyer, happens quite often.
READ MORE: Law firm’s tool helps employees figure out how much severance they’re owed if fired
Disciplining employees in Canada
Before an employer can fire an employee for just cause and withhold severance, the employee must be given ample opportunity to fix their conduct. This means the employer has to move through progressive levels of discipline, which can range from a verbal warning to a few days’ suspension.
After establishing that the series of corrective measures didn’t work, an employer might be able to finally fire an employee for just cause.
READ MORE: 5 things your employer can’t legally do in Canada
Does a single mistake warrant termination?
One mistake may be so appalling that it prompts an employer to fire someone for cause.
Honest mistakes, however, like the one that Szczecina appears to have made, likely don’t fall into that camp — even if his gaffe did cost the business nearly $20,000. The Canadian legal system tends to be unsympathetic toward employers who point to financial losses to argue that a firing for cause was justified.
If you lose your job following a mistake at work, whether it was a simple or complex matter, talk to an employment lawyer, like the ones at Samfiru Tumarkin LLP, to have your situation reviewed. We can determine what your options are and how much compensation the law determines you should receive.
Lost your job after making a mistake? Employer says you’re not owed severance pay?
Contact the firm or call 1-855-821-5900 to secure assistance from an employment lawyer in Ontario, Alberta or British Columbia. Get the advice you need — and the compensation you deserve.
Jonathan Margolin is an employment lawyer and associate at Samfiru Tumarkin LLP, Canada’s most positively reviewed law firm specializing in employment law and long-term disability claims. The firm provides free advice as the host of Canada’s only Employment Law Show on TV and radio.