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Sexual Harassment in the Workplace

Harassment and A Poisoned Workplace: What You Should Know

To have a successful employment relationship between the employer and employee, the employer is obligated to ensure that the workplace is free from harassment and discrimination to protect an employee’s human rights. This can include policies outlining the requirements to maintain a work environment that addresses harassment and discrimination and an investigative process to examine any claims that come forward from employees. Otherwise, employers may risk being liable for human rights violations. Generally, employees are also expected to bring forward harassment claims in a timely manner so that the employer can investigate their claims and provide a resolution. 

In this post, we will go over harassment in the workplace as a human rights violation and how this also relates to a claim of a poisoned workplace that prevents an employee from working in that environment. We will discuss a case example, Rougoor v. Goodlife Fitness Centres Inc., 2024 HRTO 312, in which a sexual harassment case was raised before the Human Rights Tribunal but was dismissed as there was no evidence that the employee had raised the issue with their employer until six months after their termination. This post will provide key takeaways for employers seeking to understand their obligations to ensure the workplace is harassment-free and give employees insights into their rights to work in a harassment-free environment

Harassment in the Workplace as a Human Rights Violation 

Human rights in the workplace are governed by the Human Rights Code (the “Code”). Under sections 5(1) and (2) of the Code, each employee has a right to equal treatment in their workplace, without discrimination based on race, ancestry, sex, sexual orientation, and more. Section 7(2) of the Code also outlines issues concerning harassment because of sex in workplaces. Under this section, each employee has a right to be free from harassment in the workplace because of sex, sexual orientation, gender identity, or gender expression by their employer, an agent of the employer, or another employee. Notably, employees are free from harassment from both the employer and other employees. 

Harassment is defined in section 10(1) of the Code as engaging in vexatious comments or conduct that is known or ought to be known to be unwelcome reasonably. It is important to note that it is unnecessary for the person causing the harassment to know that the other person does not want to be treated this way if a reasonable person would conclude that it would be unwelcome behaviour. In other words, the person harassing another cannot rely on the excuse that they did not know their behaviour was inappropriate. 

If it was another employee who sexually harassed the claimant, the employer is not vicariously liable under section 46.3(1) of the Code, although there are some exceptions under the case law. For harassment, it is possible for an employer to be liable if the harasser was part of the directing mind of the employer as a corporation or organization or where management knew or ought to have known about the harassment but failed to take reasonable steps to address it. The employer’s response could also be relevant to the finding of a poisoned workplace, as described below. 

The person claiming harassment is responsible for proving it on a balance of probabilities (i.e. more probable than not). To prove harassment as a human rights violation, the claimant needs to provide clear, convincing, and cogent evidence. 

Poisoned Workplace Due to Harassment 

A related issue is a poisoned workplace arising from harassment. This finding uses the same test for determining a poisoned work environment, resulting in a constructive dismissal. Essentially, this means that the work environment was so poisoned that it fundamentally changed the employment contract, which includes an implied term that the employer will provide a work environment that is not so unwelcome that a reasonable person would conclude that the employee could no longer work there. 

The test for finding a poisoned work environment is the following:

  1. There must be evidence that would lead a reasonable bystander to conclude that there was a poisoned workplace; 
  2. For stand-alone incidents, a poisoned workplace only arises if the conduct is so serious that it creates a hostile or intolerable work environment; otherwise, the behaviour must be persistent or repeated.

The Human Rights Tribunal will also consider other relevant factors, such as:

  1. The number of comments or incidents;
  2. Their nature; 
  3. Their seriousness; 
  4. Whether taken together, the comments or incidents had become a condition of the claimant’s employment such that they had to endure discriminatory conduct and comments.

A poisoned work environment differs slightly from harassment, as defined in the Code. A finding of harassment involves a series or course of comments or conduct, whereas a poisoned work environment can be found for an egregious stand-alone incident. Also, if a poisoned work environment is found, the employer can be found liable under the Code.

Obligations of An Employer To Address Harassment in the Workplace 

In the Rougoor case, the claimant made a human rights claim of sexual harassment in the workplace. She claimed that her co-worker harassed her, and the employer failed to investigate the matter properly. Several months after she was terminated, she informed the employer that she was sexually harassed in the workplace. 

However, the Human Rights Tribunal noted that previous human rights cases ruled that an employer has no legal duty to conduct a workplace investigation after the person requesting it is no longer an employee. 

The employer claimed that at no point during the employee’s employment were they aware she was being harassed. In this case, there was no evidence to suggest that she reported the harassment while working for the employer. There was also no evidence that the employer should reasonably know that the employee faced harassment. Without this knowledge, the Human Rights Tribunal found that the employer could not address the issue. The Human Rights Tribunal, therefore, concluded that there was no poisoned work environment that the employer could address. 

Overall, the claimant’s evidence was inconsistent and could not be supported by any documentation. The claim was dismissed.

Contact Haynes Law Firm in Toronto for Advice on Workplace Harassment Claims

Our experienced employment law legal team at Haynes Law Firm in Toronto can assist you with workplace harassment claims, which can lead to a poisoned work environment where an employee cannot continue working. For employees, our goal is to ensure that they understand their rights and receive maximum compensation in workplace harassment cases. Haynes Law Firm also assists employers in avoiding liabilities that may arise from harassment claims. We are dedicated to finding the best resolution for you.To book a consultation, please contact us online or by phone at 416-593-2731.

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Maintaining a Harassment-Free Workplace Sexual Harassment in the Workplace

Workplace Harassment Investigations And The Risk Of Defamation

Ontario employers have a duty to investigate allegations of workplace harassment. This involves preparing a report and communicating the results of the investigation to the worker and alleged harasser. 

Complying with this legal duty can create risks for employers, such as the possibility of a defamation claim by the worker or the alleged harasser. This article explores this issue with reference to the recent decision of the Court of Appeal for Ontario in Safavi-Naini v Rubin Thomlinson LLP.

Employers have a duty to investigate workplace harassment

Workers that have experienced human rights violations have a range of options to seek redress. One thing that needs to take place in the event of an incident or complaint of workplace harassment is a proper investigation. The Ontario Occupational Health and Safety Act (OHSA) places such a duty on employers.

The OHSA defines “workplace harassment” as: 

“engaging in a course of vexatious comment or conduct against a worker in a workplace that is known or ought reasonably to be known to be unwelcome.”

Workplace harassment also includes workplace sexual harassment. Please see our earlier article on the situations where the duty to investigate workplace harassment arises.

The workplace harassment investigation involves several stages

Under section 32.0.7 of the OHSA, the employer needs to conduct an ” appropriate investigation in the circumstances.” The legislation also requires the worker and alleged harasser (if the latter is also a worker of the employer) to be informed in writing of the investigation results and any action that has or will be taken. 

As we looked at in a previous article, there is a Code of Practice that employers can follow in order to meet the OHSA investigation requirements. It sets out a number of useful practices that employers can use to ensure a thorough and appropriate investigation, including:

  • The investigator needs to keep the investigation confidential and not disclose identifying information unless necessary to conduct the investigation or as required by law. 
  • The investigator must prepare a written report summarizing all the relevant information, including the steps taken during the investigation, the complaint, the allegations, the alleged harasser’s response, the evidence of witnesses and the evidence gathered.

University-appointed external investigator to examine workplace harassment complaints

The recent decision of Safavi-Naini v Rubin Thomlinson LLP is an example of what can happen if the complainant disagrees with the findings of a workplace harassment investigation. 

The plaintiff was a medical resident of Northern Ontario School of Medicine (NOSM). She made complaints of workplace harassment and sexual harassment against two of the NOSM faculty members. 

NOSM appointed a law firm investigator to investigate the plaintiff’s complaints. 

The investigator concluded that the alleged harassers had not engaged in workplace harassment

The investigator prepared a report and an executive summary for NOSM. She preferred the evidence given by the alleged harassers, with the summary stating that she had concluded that she did not find that they had behaved in a manner that constituted workplace harassment or sexual harassment and that the plaintiff was not a reliable witness.

The executive summary was not made public but was filed by one of the alleged harassers with the Human Rights Tribunal of Ontario as part of his defence to a claim made by the plaintiff. The plaintiff had previously issued a press release via a publicist, so the allegations were public.

Plaintiff commenced defamation proceedings; defendants sought a dismissal

The plaintiff also started proceedings against the investigator and her firm, claiming that the executive summary was defamatory. 

The defendants sought to dismiss these proceedings under section 137.1 of the Courts of Justice Act, arguing that the proceeding arose from an expression made by the defendants that related to a matter of public interest. Under this section, the court is required to dismiss such a proceeding unless it has substantial merit, the defendant has no valid defence, and the harm likely to be suffered by the plaintiff from the expression is serious enough to outweigh the public interest in protecting the expression. 

The defendants argued that the executive summary related to a matter of public interest, namely an investigation into harassment. 

The expression in the executive summary related to a matter of public interest

The Court of Appeal agreed with the motion judge that the executive summary related to a matter of public interest. It said:

“The subject matter of the Executive Summaries concerns general matters over which the public has substantial interest. The public has significant concern over sexual harassment and workplace harassment and, generally, has an interest in investigations into these issues.”

The Court explained that not every harassment-related expression fell within the scope of public interest, but this expression did because NOSM is an educational institution. Media attention and public safety concerns were arising from the allegations. The Court noted that the plaintiff retained a publicist to generate media coverage to shame the institution.

The executive summary was protected by qualified privilege

The Court of Appeal also agreed with the motion judge’s conclusion that the defence of qualified privilege protected the summary. This was because the defendants had a duty to NOSM to report on the investigation, and NOSM had a corresponding interest or duty to receive it. The Court referred to the OHSA investigation requirements to support this conclusion:

“The [investigator and law firm] were retained to investigate allegations of workplace harassment and to prepare investigation reports for NOSM, as required under s. 32.0.7 of OHSA. Moreover, pursuant to s. 32.0.7(1)(b) of OHSA, NOSM had a legal duty to provide, in writing, the results of the investigation, and any corrective action taken, to the complainant and her alleged harassers.”

Given the motion judge’s finding that the balance favoured protecting the expression, the Court of Appeal agreed with the decision to dismiss the plaintiff’s claim against the investigator and her firm.

Contact Haynes Law Firm in Toronto for Advice on Workplace Harassment Investigations

Haynes Law Firm represents both employees and employers in workplace harassment-related matters. As the above decision shows, employers need to take great care when conducting harassment investigations. We can help your organization comply with the legal requirements. We also assist employees to respond to instances of workplace harassment and effectively enforce their rights. To discuss how the employment law team at Haynes Law Firm can assist you, please contact us online or call us at 416.593.2731.

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Human Rights in the Workplace Sexual Harassment in the Workplace

Is There A Standalone Tort Of Sexual Harassment?

Sexual harassment is a specific form of workplace discrimination constituting conduct (such as jokes or comments) relating to sex, sexual orientation, gender identity or gender expression that is unwelcome or ought to be known to be unwelcome. 

This article examines some of the legal options for dealing with sexual harassment in the workplace. Specifically, we look at whether employers can be held liable for a civil wrong of sexual harassment and the other options available to employees, such as applying to the Human Rights Tribunal of Ontario (HRTO).

Employees can apply to the Human Rights Tribunal of Ontario seeking a remedy for sexual harassment

Under section 7 of the Ontario Human Rights Code, employees have a right to freedom from sexual harassment in the workplace by their employer, employer agent, or another employee. They may apply to the HRTO, and the matter will proceed to a hearing if they do not reach a settlement. If harassment is proven, the adjudicator can grant remedies, including the payment of monetary compensation.

Importantly, under the Human Rights Code, there is no vicarious liability against an employer in respect of sexual harassment claims. This means that complaints must be brought against the individual who committed the sexual harassment, for example, a specific employee – not against the company. 

Employees can allege sexual harassment in the context of an independent civil action

Under section 46 of the Human Rights Code, a court is able to order monetary compensation or restitution in a civil proceeding where a Human Rights Code right has been breached. However, a person is not able to commence a civil action solely based on an infringement of a Human Rights Code right – they need to have another cause of action.

In the context of workplace sexual harassment, this means that employees may be able to use incidents of sexual harassment to prove wrongful dismissal or constructive dismissal and as a component of this civil claim, also establish a breach of their Human Rights Code right to freedom from sexual harassment. 

Employers have obligations under the Occupational Health and Safety Act

Under the Occupational Health and Safety Act (OHSA), employers have a range of duties relating to the prevention of sexual harassment, including the obligation to:

  • provide information, instruction and supervision to a worker to protect their health and safety, and take every precaution reasonable in the circumstances for their protection;
  • have a policy with respect to workplace sexual harassment; and
  • investigate all complaints of sexual harassment.

Inspectors from the Ministry of Labour, Training and Skills development enforce the OHSA, and it is possible for employers that fail to comply with their obligations to be prosecuted. 

Is there an independent tort of sexual harassment?

A question remains whether an employee can claim damages from an employer in court proceedings for an independent civil wrong of sexual harassment. 

This issue was raised in the recent decision of the Ontario Superior Court of Justice in Incognito v Skyservice Business Aviation Inc.

Employee sued employer for vicarious liability for sexual harassment

The plaintiff employee worked for the defendant employer Skyservice. She alleged that she was subjected to sexual harassment, which caused her to undergo breast reduction surgery to lessen herself as a target. The plaintiff also claimed that the employer failed to provide her with a work environment free from sexual harassment or investigate her complaints. 

The employee sued the employer for vicarious liability for sexual assault and vicarious liability for sexual harassment. She also sued the company’s vice president of sales personally. 

Employee argued that the claim was not solely for a Human Rights Code violation

The employer sought to have the claim against it for vicarious liability for sexual harassment struck out on the basis that it did not disclose a reasonable cause of action because the Human Rights Code does not permit civil actions based solely on an infringement of a Code right.

The employee acknowledged that the Human Rights Code could not solely be a cause of action but argued that sexual harassment accompanied and should increase the damages for the tort of sexual assault. The plaintiff also claimed that there was a compelling policy rationale, considering the “Me too” movement, to be able to sue for vicarious liability for sexual harassment.

Ontario courts have held that sexual harassment is not an independent tort

Justice Vermette explained that because the Supreme Court of Canada has held a plaintiff is unable to pursue a common law remedy when human rights legislation contains a comprehensive enforcement scheme, and the Code deals with sexual harassment, Ontario courts have previously held that sexual harassment is not an independent tort capable of supporting a cause of action. 

Employer cannot be vicariously liable for sexual harassment 

Her Honour turned to the facts of this case. She decided that, as there was no independent tort of sexual harassment in Ontario, the plaintiff’s claim of vicarious liability for sexual harassment against the employer had no reasonable prospects of success and must be struck.

However, Justice Vermette explained that the Human Rights Code provision ruling out vicarious liability only applied to alleged infringements of certain named sections, including the section 7 prohibition on sexual harassment. 

Given that the plaintiff had also claimed against the employer for vicarious liability for sexual assault, as part of that cause of action, it may be possible to claim compensation under the Code for infringement of a right outside section 7. Her Honour said that the facts, as pleaded by the plaintiff, could potentially support such a claim, opening the door to tacking on a Code claim to her vicarious liability for sexual assault action. 

Contact Haynes Law Firm in Toronto for Advice on Sexual Harassment

The legal options for seeking a remedy for sexual harassment are complex, and the best route depends on your circumstances. Haynes Law Firm assists employees in obtaining the compensation to which they are entitled if they have been a victim of sexual harassment. We also help employers defend specific claims and make sure they meet their obligations to maintain a harassment-free workplace. To discuss how the employment law team at Haynes Law Firm can assist you, please contact us online or call us at 416.593.2731.

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Sexual Harassment in the Workplace

Can You Waive The Right To Bring A Sexual Harassment Claim?

Sexual harassment is a specific form of workplace discrimination involving comments, jokes, or conduct relating to sex, sexual orientation or gender that are unwelcome and inappropriate.  

Employees are protected from sexual harassment by law, including under the Ontario Human Rights Code. They may bring a claim against the employer for sexual harassment experienced in the workplace, such as for constructive dismissal. But what happens if the employee signs an agreement releasing the employer from liability?

This article looks at the recent decision of the Human Rights Tribunal of Ontario in Murphy v Anishnabeg Outreach Employment and Training, in which an employer sought to rely on a release signed by an employee who alleged that she was sexually harassed. The case demonstrates that an employee may still be able to claim discrimination or harassment even if they have signed an agreement with the employer to resolve the issue.

What is sexual harassment?

Under the Human Rights Code, every employee has a right to freedom from harassment in the workplace because of sex, sexual orientation, gender identity or gender expression by their employer (or agent) or by another employee. 

Sexual harassment can form small aggressions that continue over time or may be defined by a single incident. The types of behaviours which may be considered sexual harassment in the workplace include communication about sexual activities, jokes relating to sexuality or gender, unnecessary physical contact and demanding sexual favours.

Employee resigned after alleging sexual harassment

In the case before the Human Rights Tribunal, the applicant employee alleged discrimination on the ground of sex and sexual harassment by her employer and its chief executive officer. She claimed that the CEO repeatedly made comments and engaged in inappropriate behaviours.

The applicant resigned from her position and was called to an emergency Board meeting. At the meeting, her resignation was put on hold until an external investigation took place. She was later advised by the investigator that the investigation had been completed and that the CEO would remain in his position. The employee responded that she did not wish to return to work.

Employee signed agreement and release to receive final pay cheque

Shortly after, the CEO emailed the applicant a letter of agreement stating that the Board acknowledged receipt of her resignation and that it would continue to pay her wages until her interview with the investigator, provided that she signed the agreement and was released within two days. The release said that the applicant agreed not to pursue any claims, demands or actions on account of the termination of her employment, including any claims for discrimination under the Human Rights Code

The applicant signed the documents and returned them to another Board member. She did not obtain legal advice and said that “she wanted to end the angst and panic” which she had been experiencing and “just wanted to be done with it all”.

The employer asked the Tribunal to dismiss the application as an abuse of process because the employee signed a full and final release. 

Employee argued economic and psychological duress

Adjudicator Mounsey explained that the release was broad, but the language was clear. The central issue was the circumstances under which the applicant signed the agreement and release and whether there was a valid basis for invalidating these contracts due to duress.

The Adjudicator noted that the Human Rights Code does not expressly bar applications where a release has been signed. However, the Tribunal may make such orders as it considers proper to prevent abuse of its processes. 

While a release should not easily be disturbed where the literal and ordinary meaning demonstrates a clear intention to fully and finally release a party from all claims, there may be compelling reasons to set the contract aside, such as where there is economic or psychological duress. 

Tribunal found that there was no economic duress

The Adjudicator explained that both economic and psychological duress requires an element of threat or coercion that must be experienced at the time of signing. Where economic duress is claimed, a party must establish that their need was so serious that they had no other option but to sign the release or agreement. 

The Tribunal decided that the applicant had not proven that the loss of her position resulted in financial hardship which left her no choice but to sign the settlement documents. 

Tribunal allowed claim to proceed due to psychological duress

However, the Adjudicator was satisfied that the applicant demonstrated that she was under emotional and psychological duress. In particular, the Adjudicator noted that the applicant testified that she found the email from the CEO coercive and threatening and found that this was a reasonable reaction. She had advised the Board that she did not wish to have any further contact with the CEO. 

The Adjudicator also noted that the applicant:

“Was provided with roughly two days in which to consider her legal position and determine whether to execute the Letter Agreement and Release. She was not advised of, or provided with, an opportunity to seek independent or legal advice concerning these documents.”

As a result, the Tribunal found that the release was not a bar to the employee’s application. The application was permitted to continue through the Tribunal’s process, including a substantive determination on the harassment allegations. 

Contact Haynes Law Firm in Toronto for Advice on Sexual Harassment

Too often, employees feel pressured into signing documents without the opportunity to conduct a proper review or consider the implications. Haynes Law Firm can help employees obtain the compensation they are entitled to, including where they have or continue to face sexual harassment at work. We also help employers meet all workplace safety and harassment compliance obligations. To discuss how the employment law team at Haynes Law Firm can assist you, please contact us online or call us at 416.593.2731.

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Employment Discrimination Maintaining a Harassment-Free Workplace Sexual Harassment in the Workplace

Discrimination Claims In The Human Rights Tribunal Of Ontario

We recently reported on discrimination claims for federally regulated employees, explaining that such employees could choose to bring a complaint before an administrative body (the Canadian Human Rights Commission) or through the court system. 

A similar choice faces employees that are not federally regulated. If they experience discrimination in the workplace, they may register a complaint with the Human Rights Tribunal of Ontario (HRTO) or file a claim through the court system.

This article looks at the process of filing an application with the HRTO. We also look at a recent decision of the HRTO that awarded damages to an employee that was a victim of sex discrimination and harassment that caused her to resign from her employment. 

Employers cannot discriminate on prohibited grounds

Under section 5 of the Ontario Human Rights Code (Code), every person has a right to equal treatment with respect to employment without discrimination because of a range of enumerated grounds, specifically race, ancestry, place of origin, colour, ethnic origin, citizenship, creed, sex, sexual orientation, gender identity, gender expression, age, a record of offences, marital status, family status or disability. 

Further, employees have a right to freedom from harassment in the workplace by the employer, an employer’s agent or another employee because of the same grounds. The Code also contains specific prohibitions against sexual harassment. 

Applying to the Human Rights Tribunal of Ontario

If you believe you have experienced discrimination or harassment, one option is to file an application with the HRTO.

There is a voluntary mediation stage, in which the parties may attempt to reach an agreement with the assistance of an HRTO mediator. If this is unsuccessful or one or both of the parties are not interested in trying mediation, the application will go to a hearing.

Similar to a court process, during the hearing, a party can question witnesses and introduce relevant documents as evidence. The parties make arguments about the facts and the law. The HRTO adjudicator decides whether discrimination has occurred and, if so, decides an appropriate remedy.

Employee resigned after alleged abusive and discriminatory conduct

In A.B. v C.D., the applicant employee started working for the respondent and his company in 2007. The employer began a pattern of conduct toward her that she described as abusive and discriminatory.

The applicant explained that the incidents included:

  • The employer would disparage her appearance and her weight, and comment that she “waddled” when she walked.
  • He once said in front of a customer that he would just get the applicant to “waddle over” and that when she was through, she should “go and sit down like a good dog”. 
  • She was told to put her hand up to ask to go to the bathroom.
  • The employer watched a pornographic movie with another employee and there was joking about sexual behaviours.
  • The employer called her an “idiot” on an almost daily basis and also said “no one would hire you, look at you” and “no one would want you looking like that, you can’t even walk, you waddle”. 

The applicant resigned numerous times, with the final time in 2014.

Tribunal found employer engaged in sex discrimination and harassment 

Adjudicator Reaume explained that the employer did not respond to the applicant’s specific allegations of discrimination and harassment in the workplace. He offered alternative theories about the source of the applicant’s lack of self-esteem and well-being, and said that he treated his employees fairly in a high-pressure industry.

The Adjudicator accepted the applicant’s testimony that she was targeted daily with conduct that was discriminatory, abusive and in some cases, violent. The incidents she described went well beyond good-natured teasing and sexual banter in a workplace, with the Adjudicator saying:

The vulgar and aggressive comments about her appearance, intelligence and work performance struck at the core of her dignity as a woman. She felt that she had no choice but to put up with the respondent’s behaviour if she wanted to maintain her job.

The Adjudicator found that the bullying and harassment the applicant experienced was an abuse of power, exercised in part because she is a woman. The HRTO found that the applicant was a victim of sex discrimination and that her work environment was poisoned by repeated acts of discrimination and harassment by the respondent, causing her to resign from her employment. 

Employee awarded lost wages, plus damages for injury to dignity, feelings and self-respect

Adjudicator Reaume awarded the applicant approximately $31,000 in lost income, which was the best approximation of what she would have earned if she remained with the employer for the period between when she was forced to resign and when she started a new position. 

The Adjudicator also awarded the applicant $25,000 in damages for injury to dignity, feelings and self-respect. The applicant felt degraded, humiliated, anxious, depressed and feared for her safety. The applicant’s health was also significantly affected.

Finally, the applicant requested an order that the employer implements policy, education and training programs to establish and maintain a workplace free of discrimination and harassment. The Adjudicator ordered the employer to post copies of the Code cards in the workplace, to complete an online learning course and retain an expert to develop and implement workplace human rights policies and procedures.

Contact Haynes Law Firm in Toronto for Highly Skilled Representation in Employment Discrimination Claims

Toronto employment lawyer Paulette Haynes and her team of employment professionals at Haynes Law Firm work with employees (and employee candidates) who have experienced discrimination in the workplace. The Haynes Law Firm team has worked on both sides of this issue for nearly three decades and is privy to the various tactics used by employers to avoid liability in workplace discrimination matters. To ensure you receive fair compensation or a remedial remedy appropriate for your circumstances, contact the team at Haynes Law Firm. Please fill out the online form or call us at 416.593.2731.

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Sexual Harassment in the Workplace

Court Finds Termination for Sexual Harassment and Failure to Apologize Justified

Sexual harassment is a specific form of workplace discrimination involving comments, jokes, or conduct relating to sex, sexual orientation, or gender that are unwelcome or ought to be known are unwelcome. Employers are legally required to take action when they become aware of a claim of sexual harassment in the workplace. Following an investigation, it might be appropriate for the employer to provide sensitivity training or even terminate the employment of the employee that engaged in the behaviour.

In the event of termination, it is possible that the dismissed employee may bring a claim for wrongful dismissal, arguing that the employer failed to demonstrate just cause. 

In the recent case of Hucsko v A.O. Smith Enterprises Limited, the court was called upon to decide whether an employee could be terminated for just cause following an investigation into a complaint made by a co-worker regarding four inappropriate comments that constituted sexual harassment. 

Workplace Investigation into Inappropriate Comments 

In 2017, the plaintiff, an employee of 20 years, was investigated by his employer for making inappropriate comments. The complainant, another employee, made a formal complaint to the human resources manager alleging sexual harassment. The manager and director of finance and administration conducted an investigation and concluded that the plaintiff made inappropriate comments. The employer provided a final warning to the plaintiff and required him to participate in sensitivity training and provide an apology to the complainant.

The plaintiff did not agree with the conclusions and sought legal advice. His lawyer wrote to the employer stating that the plaintiff would undertake the training but was not prepared to issue an apology admitting to any wrongdoing.

The employer subsequently suspended the plaintiff and then terminated his employment for cause effective immediately due to “an irreparable breakdown in the employment relationship” based on inappropriate comments inconsistent with company policies, a lack of remorse indicating an inability to correct the behaviour going forward and refusal to comply with the required corrective action constituting willful insubordination. 

Challenge Brought by the Dismissed Employee

The plaintiff succeeded in a wrongful dismissal claim before Justice Taylor of the Superior Court of Justice of Ontario and was awarded damages in lieu of 20 months’ notice.

His Honour found that it was unclear whether the employer had concluded that the plaintiff’s conduct amounted to sexual harassment, but that he was dismissed for insubordination. The plaintiff’s conduct did not justify a conclusion that there had been an irreparable breakdown in the employment relationship. 

Justice Taylor criticized the employer for failing to respond to the lawyer’s letter and negotiate the wording of an apology acceptable to both parties. While the employer was entitled to terminate on the basis of an incompatible working relationship with a colleague, it was not entitled to create a situation in which it relied on just cause to terminate the plaintiff’s employment.

The employer appealed to the Court of Appeal for Ontario.

Did the Trial Judge Err in Finding that the Termination for Cause was Not Justified?

Justice of Appeal Feldman considered three arguments put forward by the employer.

Did the Trial Judge Make an Error of Fact by Finding that the Employer Did Not Conclude that the Plaintiff’s Comments Amounted to Sexual Harassment?

Her Honour held that the trial judge erred in finding that it was unclear whether the employer found that the comments constituted sexual harassment. The investigation’s finding that the comments were inappropriate was in the context of a complaint of sexual harassment – the investigation concluded that the allegation of sexual harassment due to the making of inappropriate comments was substantiated.

Did the Trial Judge Err in Law by Failing to Apply the Correct Test for Determining Whether the Employer had Just Cause to Dismiss the Plaintiff?

Her Honour cited authority setting out the test as:

the core question for determination is whether an employee has engaged in misconduct that is incompatible with the fundamental terms of the employment relationship. …

Application of the standard consists of:

1. determining the nature and extent of the misconduct;

2. considering the surrounding circumstances; and

3. deciding whether dismissal is warranted (i.e. whether dismissal is a proportional response).

Justice of Appeal Feldman held that the trial judge erred in applying this test by failing to properly identify and characterize the conduct for which the plaintiff was terminated. The plaintiff’s conduct consisted of both making inappropriate comments and then refusing to apologize, not just the latter. His Honour did not adequately address the second step either, failing to consider the employer’s harassment policy and recent training undertaken by the plaintiff.

Did the Trial Judge Err by Failing to Find that the Employer had Just Cause to Terminate the Plaintiff’s Employment?

Justice of Appeal Feldman proceeded to apply the three-step test. Looking at the nature and extent of the misconduct, her Honour concluded “there is no doubt that [the comments] constituted sexual harassment”. Moving to consider the surrounding circumstances of both the employee and the employer, her Honour placed significant weight on the fact the plaintiff had just received training on the employer’s harassment policy and was a senior employee, and as such, would have been trusted to abide by the policy in his relations with co-workers.

Finally, her Honour decided that the misconduct was sufficiently serious that it resulted in a breakdown of the employment relationship and that dismissal was a proportional response by the employer. The giving of a final warning and opportunity to redeem himself by taking training and apologizing was a fair and proportionate response. Failure to understand his conduct and accept the discipline imposed led to a complete breakdown in the employment relationship. Termination of the plaintiff was justified. 

Contact Haynes Law Firm in Toronto for Advice on Sexual Harassment

Haynes Law Firm helps employers and employees throughout Ontario achieve effective solutions to legal issues and conflict management in employment law and civil litigation. Our legal team represents employees facing sexual harassment and helps wrongfully dismissed employees obtain the compensation to which they are entitled. We also help employers ensure they meet all workplace safety and harassment compliance obligations. To discuss how the employment law team at Haynes Law Firm can assist you, please contact us online or call us at 416.593.2731.