By Stephen Dugandzic
In the case of Wan v H&R Block Canada Inc, 2024 ABKB 734, the Alberta Court of King’s Bench addressed whether an employee’s secret recordings of workplace meetings constituted just cause for dismissal.
Case Background
• Employee: Timothy Wan, Vice President of Product Development and Innovation at H&R Block Canada.
• Termination: Wan was terminated for cause and subsequently filed a wrongful dismissal lawsuit seeking reasonable notice compensation.
• Employer’s Defence: H&R Block argued that Wan’s secret recordings of meetings, discovered post-termination, justified dismissal for cause.
Legal Issues
• After-Acquired Cause: The employer relied on misconduct discovered after termination to justify dismissal.
• Secret Recordings: The central question was whether surreptitious recordings of workplace meetings, without explicit prohibition in company policies, amounted to just cause.
Court’s Analysis
• Policy Considerations: The court noted that H&R Block’s code of conduct and confidentiality agreements did not explicitly forbid recordings.
• Case Law Reference: The court referenced Shalagin v Mercer Celgar Limited Partnership, a leading Canadian case on secret recordings, emphasizing the need to assess the context and intent behind such actions.
• Decision: The court dismissed the employer’s application for summary dismissal, indicating that the issue required a full trial to assess the context and severity of the misconduct.
Significance
This case underscores the complexity of determining just cause for dismissal based on secret recordings, especially when company policies do not explicitly address such conduct. It highlights the importance of context, intent, and the presence (or absence) of explicit prohibitions in employment agreements.
*Always seek legal advice. The above is for information purposes only.
Stephen Dugandzic received his Juris Doctor degree from the University of Alberta in 2013 and is Calgary-based. He previously practised with Bennett Jones LLP and Taylor Janis LLP before founding YYC Employment Law Group in 2018.