• First Reference
  • About us
  • Contact us
  • Blog Signup 📨

First Reference Talks

Discussions on Human Resources, Employment Law, Payroll and Internal Controls

  • Home
  • About
  • Archives
  • Resources
  • Buy Policies
You are here: Home / Employee Relations / Employer had just cause to terminate an employee who worked a second job

By Christina Catenacci, BA, LLB, LLM, PhD | 2 Minutes Read September 2, 2011

Employer had just cause to terminate an employee who worked a second job

conflict-of-interestIn some unfortunate cases, Canadians need to work two jobs in order to make ends meet. Well, it seems that sometimes taking a second job may not be a good idea. The British Columbia Provincial Court recently found that an employer could terminate an employee for just cause because that employee had a second job and refused to quit when she was asked.

Why? Even though the employee had other second jobs before she was promoted to bank supervisor (unrelated jobs like selling party candles), her job as supervisor involved indirect sales responsibilities, where she was expected to suggest certain services and refer the customer to the appropriate person in the branch.

Her second job as real estate agent put her in potential conflict of interest situations and in potential competition with the bank, given that selling real estate was directly related to what the bank did, that is, lending money to clients so they could buy real estate. In her capacity as real estate agent, the employee had the opportunity to solicit bank customers, use confidential information for her benefit and use the bank premises for her real estate work.

It must be said that the employee’s real estate agency business was brought to the attention of the employer because she was giving out real estate business cards right in the bank.

The court found that, given the nature of its business, the employer’s company guidelines and rules regarding conflicts of interests and competition were reasonable. The employer was able to demonstrate that the rules were in place, communicated to the employee, and consistently enforced. The employer’s request to stop the real estate business was also clearly communicated and reasonable.

What’s more, the employee’s refusal to halt her outside activities constituted disobedience with respect to work rules and the employer’s reasonable and lawful order to comply with company guidelines about outside employment. Refusing to accept her employer’s reasonable construction of its own rules was inconsistent with the fulfilment of the express terms of her own contract of employment.

As a result, the court dismissed the employee’s action against the employer.

So this is good news for employers. Even though it is understandable for employees to need or want second jobs, when those jobs conflict with the employer’s reasonable company rules, such as conflict of interest rules, the employer has the right to request that the employee quit that job. Of course, it is necessary to have evidence of the company rules, to clearly communicate the rules, and to document the employee’s disobedience.

What do you think? Was it harsh for the court to dismiss the employee’s complaint?

Would the answer change if you knew that the employee told the bank before she was promoted that she was taking real estate courses so she could take part in her family’s real estate development business? What about if you knew that the employee only worked on real estate during the weekends?

Christina Catenacci
First Reference Human Resources and Compliance Editor

  • About
  • Latest Posts
Follow me
Christina Catenacci, BA, LLB, LLM, PhD
Christina Catenacci, BA, LLB, LLM, PhD, is a member of the Law Society of Ontario. Christina worked as an editor with First Reference between 2005 and 2015 working on publications including The Human Resources Advisor (Ontario, Western and Atlantic editions), HRinfodesk, and First Reference Talks blog discussing topics in Canadian Labour and Employment Law. She continues to contribute to First Reference Talks as a regular guest blogger, where she writes on privacy and surveillance topics. Christina has also appeared in the Montreal AI Ethics Institute's AI Brief, International Association of Privacy Professionals’ Privacy Advisor, Tech Policy Press, and Slaw - Canada's online legal magazine.
Follow me
Latest posts by Christina Catenacci, BA, LLB, LLM, PhD (see all)
  • Hefty GDPR fine for Meta - January 20, 2023
  • 2022 report: More data breaches and costs rising - November 1, 2022
  • Bill C-27: a look at proposed AI provisions - August 9, 2022

Article by Christina Catenacci, BA, LLB, LLM, PhD / Employee Relations, Employment Standards / allowed to terminate for cause, British Columbia, company guideline, company rules, conflict of interest, disobedience, employment law, just cause, make ends meet, moonlighting, no wrongful dismissal, promotion, second job, second job directly related, solicit customers, soliciting, unrelated jobs, use company time

Share with a friend or colleague

Get the Latest Posts in your Inbox for Free!

Electronic monitoring

About Christina Catenacci, BA, LLB, LLM, PhD

Christina Catenacci, BA, LLB, LLM, PhD, is a member of the Law Society of Ontario. Christina worked as an editor with First Reference between 2005 and 2015 working on publications including The Human Resources Advisor (Ontario, Western and Atlantic editions), HRinfodesk, and First Reference Talks blog discussing topics in Canadian Labour and Employment Law. She continues to contribute to First Reference Talks as a regular guest blogger, where she writes on privacy and surveillance topics. Christina has also appeared in the Montreal AI Ethics Institute's AI Brief, International Association of Privacy Professionals’ Privacy Advisor, Tech Policy Press, and Slaw - Canada's online legal magazine.

Reader Interactions

Comments

  1. Christina Catenacci says

    October 11, 2011 at 7:08 am

    Thanks for your comment Gavin, Christina

  2. Gavin Carothers says

    October 7, 2011 at 4:13 pm

    I think the ruling in this case is reasonable given when the bank found out and the steps it took to communicate and enforce its policy based on conflict of interest reasons.

    If the bank knew about the employee’s 2nd job or her pursuit of furthering her education relating to real estate before she was promoted I think it would have made a difference if at that time the bank promoted her without having a discussion with her and documenting it to remind her of how her new role could conflict with her 2nd job. Good read!

  3. Gavin Carothers says

    October 7, 2011 at 4:12 pm

    I think the ruling in this case is reasonable given when the bank found out and the steps it took to communicate and enforce its policy based on conflict of interest reasons.

    If the bank knew about the employee’s 2nd job or her pursuit of furthering her education relating to real estate before she was promoted I think it would have made a difference if at that time the bank promoted her without having a discussion with her and documenting it to remind her of how her new role could conflict with her 2nd job. Good read!

  4. Christina Catenacci says

    September 6, 2011 at 7:25 pm

    Andrew,

    Thanks for your comment. I think that many problems in employment can be prevented with proper communication. This case is just one example…

    Christina

  5. Andrew says

    September 2, 2011 at 10:09 am

    Great example of the employer’s right to create and enforce policy. Also, a great lesson to employers how important it is to communicate those policies clearly to employees if you expect the courts to back you up!
    Another interesting perspective of this situation is that from the folks that licence real estate agents. This person may have found herself in hot water from them had she not lost her job at the bank first.

Footer

About us

Established in 1995, First Reference is the leading publisher of up to date, practical and authoritative HR compliance and policy databases that are essential to ensure organizations meet their due diligence and duty of care requirements.

First Reference Talks

  • Home
  • About
  • Archives
  • Resources
  • Buy Policies

Main Menu

  • About First Reference
  • Resources
  • Contact us
  • 1 800 750 8175

Stay Connected

  • Facebook
  • LinkedIn
  • Twitter
  • YouTube

We welcome your comments on our blog articles. However, we do not respond to specific legal questions in this space.
We do not provide any form of legal advice or legal opinion. Please consult a lawyer in your jurisdiction or try one of our products.


Copyright © 2009 - 2023 · First Reference Inc. · All Rights Reserved
Legal and Copyright Notices · Publisher's Disclaimer · Privacy Policy · Accessibility Policy