Misconduct on a last chance agreement

Language of agreement is key
By Brian Johnston
|Canadian Employment Law Today|Last Updated: 07/06/2016

Question: Can a last-chance agreement stipulate that any type of further misconduct will result in dismissal, or does the misconduct leading to dismissal have to be related to that leading to the last-chance agreement?

Answer: Yes. The terms of a Last Chance Agreement (LCA) must be clear so that it is easy to identify when there has been a contravention. Where the LCA stipulates the types of misconduct that will lead to dismissal, termination for such misconduct will likely be upheld, whether or not related to the behaviour leading to the LCA.

However, where the wording about the misconduct which will lead to termination is vague, an arbitrator may interpret this as intended only to apply to misconduct related to the behaviour leading to the LCA.