What is the test for dismissing an employee without notice or compensation?

The consideration must be based on the circumstances of the case. Mr. Justice Goodfellow wrote: 5 There is no fixed rule of law defining the degree of misconduct by an employee which will justify dismissal without notice or compensation in lieu of notice. It is not sufficient for the employer to simply show misconduct. Not all misconduct will meet the test of the employer establishing, on a balance of probabilities, misconduct taken individually or collectively to be inconsistent with the fulfillment of the employee's contract or contractual duties so as to amount to a repudiation of the contract or one of its essential conditions. The misconduct must be such as to defeat the reasonable expectations of the contract. It must be conduct prejudicial to the interest or reputation of the employer. (Annand v. Peter M. Cox Enterprises Ltd., [1992] N.S.J. No. 23) ➢ Analysis: