Termination letter alleging cause came four weeks after temporary layoff
The Manitoba Labour Board has dismissed an employer’s appeal of an order requiring the employer to pay wages in lieu of notice to a former employee, because the worker’s termination wasn’t for just cause.
Black Wheat Brewing Company is a small batch brewery and taproom in Brandon, Man. The worker was a brewmaster overseeing Black Wheat’s brewing operations and brewing team. He also developed the brewery’s menu of beers, which included both standard beer brands that were regularly brewed and new, limited ones.
The worker was hired in June 2020 with an offer letter that stated “as a brewmaster, you are expected to understand the needs of the brewery and act accordingly.” It also indicated that the hours of work could vary based on the brewery’s needs.
On Nov. 9, 2022, Black Wheat promoted the worker to the role of general manager.
Vacation leave
The worker took an approved vacation leave from Oct. 13 to 29 to tend to an ill family member in India. There was still beer in stock when he left, so he felt things were under control, particularly since the company didn’t give him any instructions about how much stock would be needed.
When he returned to work on Oct. 30, he emailed management to tell them certain supplies were needed for production and he wanted instructions to make the orders. He noted that some things had been ordered already, but still needed to be paid for. The company directed him to copy another individual regarding expenses.
On Nov. 1, the worker asked for clarification on the direction production was heading was well as a five-per-cent equity share, overtime pay owed to him from 2021, and safety concerns. Black Wheat responded with answers to his questions. However, the next day, it emailed the worker again to say that business conditions required the brewery to cut costs and he was being temporarily laid off until business conditions improved.
Black Wheat didn’t provide a reason for the layoff, but on Nov. 24 it sent a record of employment (ROE) stating that the reason for issuance was “shortage of work/end of contract or season.” There were no further communications between them for four weeks.
Termination letter
On Nov. 29, Black Wheat emailed the worker a letter of termination for cause stating that the worker had taken his leave but had failed to ensure that there was an adequate inventory of the brewery’s top-selling brand of beer, even though he had had time to brew a batch before he left. This led to the brand going out of stock, and the worker’s “failure to protect the interests of the company is excusable and constitutes gross negligence with respect to your responsibilities as brewmaster.”
The worker filed an employment standards complaint claiming Black Wheat owed him four weeks’ pay in lieu of notice plus unpaid overtime. He said there was still beer in stock when he returned to work after his leave and it only took 14 to 18 days to brew another batch.
Black Wheat countered that it had cause for termination because of the beer issue and the fact that the worker continued to raise the issue of overtime even though he was a manager and wasn’t entitled to overtime pay.
The Manitoba Employment Standards Branch (ESB) determined that the worker was entitled to four weeks’ termination pay and ordered Black Wheat to pay him $5,345.12, including an administrative fee.
Employer claimed just cause
Black Wheat appealed, maintaining that it had just cause for dismissal due to the out-of-stock beer and the inappropriate overtime and equity share complaints. It also said that the worker didn’t get along well with his co-workers and there were complaints about him from employees, although it provided no evidence of any complaints. The company also said that the worker sometimes threatened to quit if things didn’t go as he wanted, such as hiring his wife.
The board rejected Black Wheat’s argument that the termination was for just cause and pay in lieu of notice wasn’t required. There was no evidence that the worker had refused to work or was grossly insubordinate, noting that the company didn’t set any expectations regarding stock levels prior to his two-week leave, said the board.
While Black Wheat raised additional reasons for the termination such as interpersonal issues, unresolved equity disputes, and unquantified overtime claims, none of these were mentioned in the termination letter or supported with evidence, the board said.
The board determined that the worker was entitled to four weeks’ wages in lieu of notice under the Employment Standards Code, due to the worker’s service time of more than three years. The order to pay from the ESB was upheld.
