Time Theft at the Tailgate: Understanding the Importance of Trust in the Employment Relationship

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Introduction

Trust is the foundation of the employment relationship. This is particularly true where employees work independently and largely unsupervised, such as remote workers or employees who work off site. A recent arbitration in Alberta serves as an important reminder that a breach of this trust, even a small one, can have significant consequences.

In Martin-Brower of Canada Co. v. Teamsters, Local 362 (Gardner Grievance), [2025] AGAA No. 27, a driver tasked with delivering to McDonald’s restaurants was terminated for intentionally claiming pay for time he had not worked. The dispute, heard by Arbitrator Cheryl Yingst Bartel, underscored the serious nature of time theft and the significant impact it can have on the operations of a business.

What Happened

On July 26, 2023, the driver (the “Grievor”) was scheduled to make deliveries to McDonald’s restaurants using routes set by Martin-Brower of Canada Co. (the “Employer”), which included precise time targets for each stop. The Employer utilized a GPS tracking system, Samsara, to allow drivers to log their start and end times, maintain compliance with hours-of-work regulations and certify the accuracy of their logs. Drivers were responsible for keeping these logs accurate, and certification by the employee of their accuracy was considered an implied confirmation that the hours submitted were true.

On the day in question, the Grievor requested payment for a missed lunch break of 45 minutes. The Employer audited the Grievor’s route, including video footage from a restaurant and surveillance from a 7-Eleven, and confirmed that the Grievor had actually taken a 26-minute break. In addition, the audit revealed that the Grievor logged out of the Samsara system more than an hour after he had already left the Employer’s property at the end of his shift, claiming further payment for time he had not worked.

When confronted with the results of the audit, the Grievor admitted that he had not reviewed the logs for accuracy when he certified them upon returning to work two days later. He attributed the discrepancy to a system glitch in Samsara and cited being unwell as a reason for the delay. The Employer relied on the testimony of senior employees and the objective evidence gathered through its audit to conclude that the Grievor had engaged in intentional time theft. The Employer terminated his employment for just cause on July 28, 2023. Teamsters Local 362 (the “Union”) filed a grievance following the termination alleging that the Employer had improperly terminated the Grievor.

The Arbitration

At arbitration, the central questions were: 1) whether the Grievor had engaged in intentional time theft, and 2) whether the Employer’s decision to terminate was just and reasonable.

The Union argued that the Grievor’s conduct was the result of misunderstandings and that he should have had the opportunity to explain himself before termination. It emphasized his clean disciplinary record and suggested that while some discipline may have been appropriate, discharge was excessive. The Grievor contended that he was under time pressure and that the electronic system might have caused errors, particularly when logging out at the end of the day.

In her decision, the Arbitrator emphasized that the Grievor had a clear responsibility to review and ensure the accuracy of his logs and that failing to do so did not excuse claiming payment for unworked time.

The analysis also considered mitigating factors, such as the Grievor’s relatively short service of three years and his clean disciplinary record. While these factors weighed slightly in his favour, the seriousness of time theft – particularly in a role where employees work largely unsupervised – was a compelling aggravating factor. The Arbitrator noted that dishonest conduct strikes at the core of the employment relationship, eroding trust and undermining the ability of an employer to rely on employees’ representations.

The Arbitrator concluded that the Grievor had engaged in culpable misconduct and that the termination was just and reasonable. The Employer had produced cogent, clear and sufficient evidence to reach a conclusion that time theft had occurred after a thorough investigation and review of its documents and procedures, as well as a lack of any credible explanation by the employee explaining his actions. The grievance was therefore dismissed.

Takeaways

This arbitration offers several practical lessons for both employers and employees. For employers, it underscores the importance of clear systems and policies for tracking hours and breaks, as well as conducting thorough investigations when discrepancies arise. The case also illustrates that objective evidence – such as electronic logs, video footage and audit records – can be decisive in demonstrating misconduct. It also shows that a system of monitoring, when implemented in accordance with arbitral standards (such as being disclosed to employees as per applicable statutes), can in fact form the basis for a termination.

For employees, the case highlights the shared responsibility of maintaining accurate records and ensuring that any claims for pay correspond to actual time worked. Even minor mistakes, in certain circumstances, can justify serious disciplinary action.

Trust is fundamental to the employment relationship. This is particularly the case where the role involves independent work, such as that involving delivery drivers, technicians or remote employees. Employers must be able to rely on the honesty of their employees, and employees must understand not only that this trust is in fact fundamental but that a breach of that trust may lead to the end of that employment relationship.

The Workplace Law Group at Aird & Berlis LLP provides strategic labour advice to help employers navigate union-related challenges, from resisting certification to managing collective bargaining and arbitration. Please contact the authors or a member of the team if you have any questions or require assistance.