When will an employee be dismissed for theft?

Theft is a serious breach of an employment contract and warrants summary dismissal. In Ducharme v. England, [1999] B.C.J. No. 2814, the court states at para. 35: It is an implied term of an employment contract that an employee will not steal or commit criminal acts against his employer. When an employee commits such an act not only has he committed a breach of contract but more importantly he has demonstrated a revelation of character incompatible with due and faithful discharge of his duty to his employer. Under these circumstances the employer is entitled to summarily dismiss.

However, it is necessary for the court to engage in a contextual approach, by analyzing all the circumstances surrounding an employee’s alleged misconduct, in order to determine if the dishonesty alleged amounted to just cause for termination without notice. McKinley v. B C Tel, 2001 SCC 38 sets out a two-part factual test at para. 49: 1. Does the evidence establish the employee's deceitful conduct on a balance of probabilities? 2. If so, does the nature and degree of the dishonesty warrant dismissal?