We get it — people mess up at work. You might break a plate, lose a tool, or have a table left without paying. Unfortunately, these mistakes may cost your employer money. And while to err is human, what if your employer doesn’t forgive you? Can they make you pay for your mistakes?

Under the Labour Code, it’s illegal to withhold wages from an employee in Canada without written consent. And yes, that covers your mistakes — in most cases, they can’t make you pay. But there are exceptions, so let’s ensure you know your rights when dealing with employers.

If you need an employment lawyer in BC, reach out to Davison North Law at 6046297808

Your legal protections

Broadly, your employer can only deduct money from your paycheque under specific conditions — and mistakes are not one of them.

Here are the reasons an employee can remove money from your paycheque: if the deduction is mandated by federal or provincial governments (like taxes); if you’re part of a collective agreement or trade union; if you authorize the deduction in writing; and overpayments by your employer.

Subsection 254.1(3) expressly prohibits employers from deducting money because of property loss or damage. And if there’s a cash imbalance at a till resulting in you (allegedly) owing your employer, they have to prove two things: first, that you caused the error, and second, that nobody but you had access to the money.

When you mess up with uniforms

When it comes to employers taking money from your paycheque, the question of uniforms is common: can your employer make you wear one, and can they make you pay for it? The first question has a simple answer: yes, employers can make you wear a uniform.

But the issue of payment differs by province. In B.C., for instance, employers cannot charge for uniforms. And in Ontario, employers can only charge for uniforms if you provide written permission.

That said, Ontario’s rule isn’t without issue. Employers often ask for written permission to pay for uniforms without informing you that you’re not obligated to agree.

What’s more, they’ll likely ask you at the beginning of your tenure, before you’re confident or knowledgeable enough to refuse. As always, knowing your rights is crucial.

When you mess up at work

Occasionally, employers overpay their employees — they may pay the employee more than they’re entitled to. And no, unfortunately, this isn’t the blessing it sounds like; if you’re overpaid, you may have to give that money back. Or at least, it’ll be coming out of your paycheque.

Overpayment is rarely as glamorous as an employee waking up with a mysterious new fortune in their bank account.

Instead, overpayment usually occurs gradually: a temporary pay raise may extend beyond its intended period, an employee on leave may continue to receive payment, or an employee may receive an unintended allowance or benefit.

Although repayment rules differ slightly by province, there’s a common thread: if an employer can prove they’ve overpaid an employee, they can deduct the amount from wages without the employee’s permission.

When you mess up at your job

The differences between provincial generally arise in vacation pay and the time frame in which the payment is corrected. For example, in B.C., employers can’t deduct the overpayment from wages without written permission.

While in Ontario, employers can deduct from regular wages without permission but not from vacation pay.

In Nova Scotia, deducted payments can’t put your compensation below minimum wage, and in New Brunswick, the employer has one year to make the overpayment corrections.

Always check your province or territory’s labour laws if your employer thinks you’ve been overpaid.

A reasonable or unreasonable deduction?

The Canada Labour Code does specify some reasonable deductions that employers can apply to your paycheque. One reasonable deduction is training: as part of an employment offer, the employer can stipulate that the employee reimburse the cost of training courses.

But the Code also protects employees from unreasonable deductions — just because you’ve agreed to a deduction in writing, it isn’t always legal. Take the example of lost property.

Many contracts have agreements for returning an employer’s property at the end of your employment — anything from keys to company cars. But some deductions — like withholding a paycheque until the property is returned — are unreasonable, even if you agree to them.

Attempted wage deduction

Another common reason for attempted wage deduction is missing money. For example, say your register is short on cash — will you have to pay? For the answer to be yes, your employer must prove that only you could have taken or misplaced it, and then you must agree to the deduction in writing.

Unfortunately, theft, mistakes and faulty products are part of doing business. Many companies have insurance companies policies to protect themselves from these events, and then they pass the costs to the consumer.

As an employee, it’s not your responsibility to cover a business owner’s expenses.

When you mess up in your job

Whether it’s a faulty product or a broken tool, as an employee, you’re not responsible for the expenses; without written permission, your employer can’t deduct your wages for making a mistake.

However, your employer can deduct overpayments from your paycheque. That is, if they mistakenly pay you more than your contract states, your employers may deduct payment from future wages and vacation pay. But the rules differ by province — so check your labour laws if you’re overpaid.

As always, before you agree to any deduction in writing, check that it’s legal — just because your employer stipulates that you pay for something, it doesn’t mean they have legal precedent.

And if your employer insists you pay for a mistake, contact a lawyer — they’ll help you navigate your province’s labour laws and ensure you receive the wages to which you’re entitled.

We hope this guide informed you about what to do when you mess up at work in Canada. Use our web app to find a lawyer on our homepage. You can also leave reviews for attorneys in Canada.

Lawsuits About When People Make Mistakes At Work In Canada

Dr. Wong’s wrongful dismissal case certainly took Canada by storm in 2018. A respectable obstetrician, Dr. Wong had been in service at Sudbury Regional Hospital for over 19 years.

A single mistake—a fatal one, in which he incorrectly diagnosed a patient’s condition—brought about his termination.

Was it fair? That was the question asked by every Canadian tuned into the news that year. Some argued for zero tolerance for such fatal errors in healthcare.

Others felt Dr. Wong’s impeccable record should have been considered. The court sided with the latter group.

The Ontario Superior Court awarded Dr. Wong $1.6 million for wrongful dismissal. The judgement stated that the hospital didn’t consider Dr. Wong’s past conduct.

Understanding Mistakes at Work in Canada

His reputation for diligence and expertise was neglected. The court opined that dismissal was not the proportionate response.

This case set a legal precedent. It stressed the importance of an employer’s obligations in dismissal, and to consider a worker’s record before such drastic action.

Switching gears, let’s move from medicine to finance. In 2020, RBC Dominion Securities Inc. was the news-breaker.

A highly publicized case involved an employee named Mr. Zhu. Zhu’s job involved algorithmic trading. A software glitch caused by his mistake resulted in a $1 million loss for the company.

Canada’s Work Culture: When you mess up

Unlike Dr. Wong’s case, Zhu was not fired. But RBC, in a controversial move, decided to sue Zhu. The legal battle ignited discussion across the country. It also posed an important question: Should an employee bear the financial brunt of a work error?

It was an unprecedented situation. The Ontario Superior Court made another landmark decision. They ruled Zhu was not personally liable.

The court found Zhu had acted within his role and without malicious intent. The responsibility for the loss was on the company, not the individual.

How Canadians Handle Work Mistakes

Two different sectors, two unique cases, both made headlines. Dr. Wong, a medical practitioner, was fired for a misdiagnosis. He won his wrongful dismissal case, highlighting the employer’s duty to consider a worker’s history before termination.

Meanwhile, in the world of finance, Mr. Zhu was sued for an honest mistake at work. He escaped personal liability, confirming that employees aren’t held accountable for losses if they’re acting in good faith within their roles.

These landmark cases shape the legal landscape for work-related errors in Canada. They emphasize the need for proportionality, a fair judgement of an employee’s history, and the distinction between the roles of an organization and an individual in bearing the losses for mistakes at work.

We hope you found this guide on what to do when you mess up at your job useful. Read more about employment laws.

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