Time theft in the modern workplace
With the cultural shift to a work-from-home world, many employers have found themselves with an enhanced interest in keeping a watchful eye on employee productivity given the lack of in-person supervision. One technique gaining traction is time-tracking software.
The British Columbia Civil Resolution Tribunal (the “CRT”) has recently considered the implications that may arise from the use of such software. Besse v. Reach CPA Inc., 2023 BCCRT 27 has implications for all sectors and given the significance of the construction industry in British Columbia, it will certainly have an impact on the way the construction business operates. As such, this will be an important legal development to monitor going forward.
Issue
Karlee Besse was terminated from her accountant position at Reach CPA Inc (“Reach”) in March of 2022. Ms. Besse alleged that the dismissal was wrongful and brought a claim against her former employer through the CRT, stating that Reach owed her $1,371.60 in unpaid wages and $4,166.67 in severance pay. In response, Ms. Besse’s former company stated that she was terminated for just cause and thus, brought a counterclaim against her for a total of $2,603.07, alleging that she was guilty of time theft and therefore owed the company money.
Background
In September of 2021, Reach allowed Ms. Besse to work remotely. Five months later, Reach began to have concerns that Ms. Besse was underperforming. In February, Reach installed TimeCamp, a time tracking software, onto Ms. Besse’s work computer.
Following this installation, Reach claimed that timesheets as recorded by Ms. Besse, and the software usage logs, as collected by TimeCamp, were inconsistent, and that Ms. Besse had reported 50.76 hours of work time during which she had not been performing job-related duties. Ms. Besse declined to provide an explanation for the inconsistencies when the concerns were raised and was terminated.
Decision
The CRT found that 50.76 hours were inaccurately recorded. Based on the evidence presented, the CRT found that Ms. Besse had partaken in time theft and the associated dishonesty had the effect of creating an “irreparable breakdown in the employment relationship” such that Reach had just cause for termination.
The CRT held that Reach was entitled to $1,506.34 for the 50.76 unaccounted hours, and $1,096.73 for the unforgiven advance.
Takeaway
In Ms. Besse’s case, the CRT accepted and relied on the accuracy of TimeCamp. Whether other decision-makers will rely on similar technology and whether this will encourage employers to increase the utilization of such software remains to be seen. As this is a CRT decision, it is not binding on the courts in this jurisdiction. However, as the first decision of its kind in British Columbia, it is a notable shift in the court system’s view of privacy and it is an important legal development to keep an eye on.
Time theft continues to be a pervasive issue in the construction industry and this decision by the CRT raises questions about new strategies and techniques being used to ensure employee productivity, while operating in keeping with BC’s legal system.
For further information contact Lindsay Peretz - Whitelaw Twining
