Employer Entitled to Return of Severance Payment After Discovering Misappropriation of Funds

If an employer dismisses an employee without cause, pays the employee a considerable amount for severance, and the parties sign a full and final mutual release absolving each other from any further claims, can the employer, upon discovering the fact that the employee had lied about his actions while employed, successfully sue the employee for the recovery of the severance funds?

Yes, says the Court of Appeal for Ontario in the case of York University v. Markicevic, 2018 ONCA 893 (CanLII).

ONCA Upholds Termination for Just Cause of Fiduciary

“A fiduciary who knows about wrongdoing committed against the beneficiary has a duty to tell the beneficiary.” That important lesson was the key takeaway from a decision of the Court of Appeal for Ontario upholding a termination of employment for just cause: Dunsmuir v. Royal Group, Inc., 2018 ONCA 773 (CanLII)