Dishonesty and Insubordination as Just Cause for Dismissal
Update by Erin Brandt, Cofounder
Some may view time theft and insubordination at work as no big deal. However, such conduct can have serious consequences, as in the case of Basic v Solid Rock Steel Fabricating Co. Ltd., 2025 BCSC 287.
The Plaintiff Alexander Basic was a long-serving employee who was dismissed for just cause after claiming paid time for coffee breaks and taking paid vacation despite being explicitly denied permission. When Mr. Basic filed a wrongful dismissal claim against his former employer, the BC Supreme Court evaluated whether Mr. Basic’s conduct was serious enough to justify immediate dismissal for just cause.
Background
Mr. Basic worked for Solid Rock Steel Fabricating Co. Ltd. (“Solid Rock”) for over 20 years, most recently as project manager. He was responsible for tracking his own hours under an “honour policy” and was compensated for extra hours with either extra wages or time off.
In May 2022, Solid Rock discovered that Mr. Basic had been recording 30 minutes per day for coffee breaks he did not take – something not previously agreed upon. He was instructed to stop this practice immediately.
In October 2023, Mr. Brick requested and was granted two weeks vacation in December. However, on November 30, he submitted a calculation of his extra hours and informed his supervisor that he would be taking the remainder of the year off. Although this additional time off was denied, Mr. Basic stated he would take it regardless—and did so, knowing he was not entitled to it.
While Mr. Basic was away, Solid Rock reviewed his time records and determined that he had continued to include unauthorized coffee break time. Upon his return in January 2024, Mr. Basic was terminated for just cause. He was gratuitously paid eight weeks’ salary, minus an amount the employer claimed he owed.
Mr. Basic denied that he was insubordinate or that he engaged in time theft and sought damages for wrongful dismissal.
Decision
At common law, an employer may dismiss an employee without notice, at any time, for just cause where an employee engages in serious misconduct that gives rise to a breakdown in the employment relationship. The burden of proving just cause is on the employer.
Credibility
The Court found Mr. Basic to be an unreliable witness. His testimony was inconsistent, self-serving, and contradicted by other evidence he gave. In contrast, Solid Rock’s witnesses were found to be credible and forthright.
Time Theft
The Court concluded that Mr. Basic had engaged in deliberate and dishonest time theft by continuing to record 30 minutes per day for coffee breaks, even after being told not to. This was deemed a serious breach of trust.
Insubordination
The Court identified two acts of insubordination:
Disregarding the instruction not to record coffee breaks as time worked (addressed above); and
Taking additional time off in December 2023 despite being explicitly denied permission.
Conclusion
The Court ultimately found that Mr. Basic’s misconduct fundamentally undermined the employment relationship. His actions were serious enough to justify dismissal for just cause, and his wrongful dismissal claim was dismissed.
Key Take Away for Employees
This case reinforces the importance of honesty and trust in employment relationships. Misrepresenting hours, even in small increments can be fraudulent, particularly where trust-based systems are in place. Further, long service may not protect against dismissal if the misconduct is serious enough.
In short, ignoring clear instructions or warning can lead to immediate dismissal without severance.
Key Take Away for Employers
Time theft and insubordination can justify dismissal for just cause when trust is breached. Trust-based systems should be monitored, and concerns addressed promptly. Clear, documented instructions and consistent enforcement of policies are critical. While progressive discipline is generally recommended, it may not be required if the misconduct is serious enough.
