According to a ruling by the B.C. Supreme Court, a car dealership in British Columbia was justified in firing its president. Though the amounts involved were small, about $250, the president expensed two meals with his wife and claimed the dinner and breakfast were with employees but did not come clean about it when confronted. The court ruled that this misconduct went to the “very heart” of the employment relationship. He was in a senior management position and breached the trust placed in him by submitting false expense receipts and being untruthful about them. The president had previously signed a document stating that “falsifying records or information” or “intentional disclosure of confidential company information” would result in immediate dismissal.
Background
The president was initially hired as the general manager at Galaxy Motors. He received an employee handbook before his first day stating that falsifying records or information or intentionally disclosing confidential company information would result in immediate dismissal. In October 2020, he was promoted to vice president of operations for Galaxy Motors’s auto and RV business. A new compensation package was agreed that included a one-time payment of $10,000 and a salary of $35,000 per month. On July 9, 2021, he was promoted to “president of operations,” including a base of $30,000 per month and a sliding bonus scale based on net.
Expense claims
The new owner of Galaxy Motors investigated the president’s expense claims and discovered a restaurant receipt dated June 15, 2022, that indicated he had dinner with two employees, and a restaurant receipt dated June 16, 2022, that indicated he had breakfast with an employee. During cross-examination, the president admitted that the dinner and breakfast had been with his wife, not employees.
Fired in second video call
On July 13, the owner met with the president via video conference and informed him that there had been an investigation into his expense claims; his behaviour was a fundamental breach that caused them to lose faith and trust in him; and his employment was terminated immediately.
Contact Kent Employment Law
This decision underlines the importance of honesty and integrity in the workplace. It highlights the need for organizations to have clear policies around submitting expenses and the consequences of fraudulent claims. Kent Employment Law can help employers navigate the complexities of employment law, don’t hesitate to contact us if you have any questions.
Source:
HR Law Canada, HR Law Canada posts are written by the team at North Wall Media, & posts, V. all. (2023, May 1). B.C. court upholds firing of car dealership president who expensed two meals with his wife: HR law canada. HR Law Canada | Practical news and information for human resources (HR) professionals, employment lawyers and business leaders. https://hrlawcanada.com/2023/05/b-c-court-upholds-firing-of-car-dealer-president-who-expensed-two-meals-with-his-wife/
Case Summary: British Columbia Court Upholds Firing of Car Dealership President
According to a ruling by the B.C. Supreme Court, a car dealership in British Columbia was justified in firing its president. Though the amounts involved were small, about $250, the president expensed two meals with his wife and claimed the dinner and breakfast were with employees but did not come clean about it when confronted. The court ruled that this misconduct went to the “very heart” of the employment relationship. He was in a senior management position and breached the trust placed in him by submitting false expense receipts and being untruthful about them. The president had previously signed a document stating that “falsifying records or information” or “intentional disclosure of confidential company information” would result in immediate dismissal.
Background
The president was initially hired as the general manager at Galaxy Motors. He received an employee handbook before his first day stating that falsifying records or information or intentionally disclosing confidential company information would result in immediate dismissal. In October 2020, he was promoted to vice president of operations for Galaxy Motors’s auto and RV business. A new compensation package was agreed that included a one-time payment of $10,000 and a salary of $35,000 per month. On July 9, 2021, he was promoted to “president of operations,” including a base of $30,000 per month and a sliding bonus scale based on net.
Expense claims
The new owner of Galaxy Motors investigated the president’s expense claims and discovered a restaurant receipt dated June 15, 2022, that indicated he had dinner with two employees, and a restaurant receipt dated June 16, 2022, that indicated he had breakfast with an employee. During cross-examination, the president admitted that the dinner and breakfast had been with his wife, not employees.
Fired in second video call
On July 13, the owner met with the president via video conference and informed him that there had been an investigation into his expense claims; his behaviour was a fundamental breach that caused them to lose faith and trust in him; and his employment was terminated immediately.
Contact Kent Employment Law
This decision underlines the importance of honesty and integrity in the workplace. It highlights the need for organizations to have clear policies around submitting expenses and the consequences of fraudulent claims. Kent Employment Law can help employers navigate the complexities of employment law, don’t hesitate to contact us if you have any questions.
Source:
HR Law Canada, HR Law Canada posts are written by the team at North Wall Media, & posts, V. all. (2023, May 1). B.C. court upholds firing of car dealership president who expensed two meals with his wife: HR law canada. HR Law Canada | Practical news and information for human resources (HR) professionals, employment lawyers and business leaders. https://hrlawcanada.com/2023/05/b-c-court-upholds-firing-of-car-dealer-president-who-expensed-two-meals-with-his-wife/
