Newsletters

650

Does petty theft justify a dismissal?

Once a thief, always a thief, as the saying goes. But should an employee be fired merely for stealing a few dollars’ worth of goods from his employer? That question recently went all the way to the Court of Appeal.

The loot: two bags of chips!

The employee has been with his employer, a potato chip company, for 35 years. One day, a colleague sees the employee slip two bags of chips in his lunchbox. The colleague reports the incident to a supervisor.

After his shift, as he is about to leave the plant, the employee is stopped by a representative of the employer who asks to examine the lunchbox. Despite being caught red-handed, the employee denies having stolen the chips, claiming instead that he wanted to bring them back to a coordinator. Throughout this meeting, the employee is very arrogant. He is suspended without pay pending an investigation.

Two days later, at a meeting with the employer and a union delegate, the employee persists in denying the theft. He does not apologize, not does he express any regret.

The dismissal

The day after this meeting, the employee is fired. In the termination letter, the employer raises several arguments to validate its decision: the gravity of the employee’s behaviour, his intention to profit from his act, his awareness of a strict internal regulation on theft, his knowledge of the policy allowing employees to purchase the employer’s products at a discount, his disregard for the employer’s property and his lack of regret and remorse during the investigation.

In the employer’s view, the relationship of trust essential to employment has been definitely broken and dismissal is the only option.

The decision is challenged

The union files a grievance on behalf of the employee, seeking his reinstatement.

After considering the evidence and the circumstances of the case, the arbitrator quashes the dismissal, considering that the employer had not demonstrated the need for such a harsh sanction. Instead, the arbitrator imposes a six-month suspension without pay, a lesser but still substantial sanction.

As the arbitrator explains, the employer had made a choice. It was aware that the theft was not an isolated incident: the employee had been stealing regularly for over a year. Still, the employer did not extend the scope of its inquiry beyond the latest occurrence of theft. It based its sanction on the most recent misconduct, the theft of two bags of chips.

The matter then goes to the Superior Court, which quashes the arbitration award and confirms the dismissal. Tenaciously, the union takes the case to the Court of Appeal.

And in the end, the Court of Appeal rules that…

The employee will not be dismissed: he will be suspended for six months without pay.

In Syndicat des salarié(es) des croustilles Yum Yum (CSN) c. Croustilles Yum Yum enr. (division des Aliments Krispy Kernels inc.), 2017 QCCA 810, the Court of Appeal reversed the Superior Court’s decision and approved the arbitration award.

According to the Court, theft, fraud or embezzlement do not necessarily give just cause for summary dismissal. Once the dishonest conduct is proven, the employer must determine the appropriate sanction after consideration of all the facts.

What should employers keep in mind?

Sanctioning an employee’s dishonest behaviour is a delicate decision; as we just saw, it can give rise to long and costly judicial proceedings.

Each case is special. The employer must consider the nature and gravity of the employee’s dishonesty to decide whether the bond of trust essential to an employer-employee relationship has been broken. The nature and requirements of the position are also factors to be considered.

Before making such a delicate decision, expert advice can help an employer avoid many problems and expenditures.

By Jacques Bélanger, from our Labour and Employment Law Group.

650

Articles in the same category

No Notice of Default, No Termination

In Pavage Wemindji Inc. v. Compagnie de Construction et de Développement crie ltée, the Quebec Superior Court emphasized that a valid notice of default (mise en demeure) is not just a formality—it’s a precondition to exercising remedies like contract termination in many cases under Quebec civil law. The Decision The plaintiff, Pavage Wemindji Inc. (“Wemindji”), […]

Public Contracts: When Does a Penalty Clause Cross the Line?

Penalty clauses are a practical tool for owners: instead of having to prove actual losses when a contractor falls short, they can rely on a pre-agreed sum. For contractors, however, the stakes are equally significant — a lump-sum penalty can consume a substantial portion of the contract’s value. Still, the mechanism has its limits. Courts […]

Not So Intelligent!

Since the widespread adoption of artificial intelligence tools, growing concerns have emerged regarding their use in judicial proceedings. Recent decisions have relied on section 342 of the Code of Civil Procedure to sanction parties who make improper use of such tools. More specifically, this provision has been invoked on several occasions to address the use or citation […]

So? Is it settled or not?

In an interim decision in Djaferian v. Spanoudakis,rendered on February 20, 2026, the Superior Court had to determine whether an offer made 15 months earlier, prior to the institution of proceedings, could still be accepted and result in a transaction. Summary of Facts and Timeline The Plaintiff, a co-owner who sustained water damage to his private […]

Office Parties and the Employer’s Duty to Prevent Harassment

In De Sousa and Corporation interactive Eidos, 2026 QCTAT 4, the Quebec Administrative Labour Tribunal (ALT) appears to have broadened the scope of an employer’s obligation to prevent harassment. The decision arose from a complaint filed by a former employee who had been sexually assaulted at her home by a colleague following an office party organized by the […]

Should Economic Losses Be Considered Property Damage?

The Quebec Court of Appeal in Zurich, Compagnie d’assurances SA c. CRT Construction inc., recently overturned the Superior Court’s decision on the interpretation of a construction insurance policy. Facts CRT Construction Inc. (“CRT”) was retained by the City of Montreal (“City”) to perform major construction work at the Atwater water treatment plant. At the City’s request, CRT […]