Termination for Conflict of Interest: When Relationships Cross the Line

In a recent decision, an arbitrator upheld the termination of a supervisor at Canada Post’s Prince George Mail Processing Plant (PGMPP) for knowingly violating the company’s Conflict of Interest Policy. The case highlights the critical importance of transparency and compliance in the workplace, especially when maintaining trust and integrity.

The Situation

D.E., a supervisor at PGMPP, began a four-year intimate relationship with G.H., a subordinate employee he directly supervised. Despite the relationship progressing from casual interactions to a romantic partnership, D.E. failed to disclose it, as required by Canada Post’s Conflict of Interest Policy. This policy mandates that employees disclose any situation where personal interests, such as intimate relationships with subordinates, may interfere with the corporation’s interests.

Breach of Policy and Acknowledgement

D.E. was well aware of his obligation to disclose such relationships. He had received and signed acknowledgements of the Conflict of Interest Policy multiple times throughout his employment, including during training and upon accepting a permanent position. Despite this, D.E. did not report his relationship with G.H. until August 2023—long after the relationship had begun and when personal circumstances prompted the disclosure.

The Investigation and Termination

Upon D.E.’s eventual disclosure of the relationship, Canada Post launched an investigation. D.E. admitted to failing to disclose the relationship, acknowledging that he had been aware of the potential consequences but chose not to report it, fearing it would jeopardize his employment. In response, Canada Post issued a termination letter, citing the violation of the Conflict of Interest Policy and D.E.’s disregard for corporate procedures.

The union representing D.E. acknowledged that disciplinary action was warranted but argued that termination was excessive. They pointed out that D.E. had been honest during the investigation and showed remorse. However, the arbitrator rejected this argument, emphasizing the importance of the Conflict of Interest Policy in maintaining trust within the workplace and the public’s perception of the company’s integrity.

The Arbitrator’s Ruling

Arbitrator Nicholas Glass found that D.E.’s actions were a serious violation of Canada Post’s policies and that the trust between him and the employer had been irreparably damaged. The arbitrator emphasized that the misconduct itself—failing to disclose the relationship—created a risk to the company’s interests, regardless of whether any direct harm was proven. He concluded that the termination was not excessive, as the employment relationship had been fundamentally broken.

Key Takeaways for Employers and Employees

This case serves as a reminder to both employers and employees about the importance of adhering to company policies and maintaining transparency in relationships that could create conflicts of interest. For employers, enforcing clear guidelines on conflicts of interest is crucial for maintaining a fair, trustworthy work environment. Employees must understand the significance of disclosing any relationships that could potentially compromise their professional responsibilities or the employer’s interests.

Need Help Navigating Employment Law?

If you’re an employer or employee facing similar challenges, Kent Employment Law is here to help. Our experienced team is ready to provide the guidance you need to protect your rights and maintain compliance. Contact us today to book a consultation and ensure your workplace remains secure and legally sound.

For more information on this decision, see Canada Post Corporation v Association of Postal Officials of Canada, 2024 CanLII 108264 (CA LA).

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