Providing severance pay for just cause dismissal

Does giving severance pay when not required condone just cause misconduct?
By Brian Kenny
|Canadian Employment Law Today|Last Updated: 05/20/2009

Question: Our company terminated an employee for falsifying time records and taking a company vehicle home. He was warned previously that further off-site use of the vehicle would result in termination. His employment agreement states we will provide two weeks’ pay in lieu of notice unless terminated for serious misconduct including falsifying records, though we did give him one week’s pay. Did we take proper action by providing pay in lieu when we really didn’t need to?