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MegaHurts Ltd. Case Study

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MegaHurts Ltd. Case Study

Summary
This report offers its opinion on the potential legal repercussions and the best approach
for MegaHurts Ltd., a large chain of electronics stores in British Columbia, concerning two
employment issues involving Barney Draper and Janine Viera, and Amber Stone. Due to the
pandemic and competition from online vendors, MegaHurts is experiencing significant change.
Thus, they have recruited a consulting firm to assist with the two employment issues. Firstly,
Draper, a warehouse manager in their Surrey location, has been accused of sexually harassing
Janine Viera, who has gone on short-term disability due to the incident. A lawyer representing
Viera has sent an official message to the company. Their anti-harassment policy is inefficiently
implemented and lacks clarity; Sturgis, the owner, is considering dismissing Draper as a cost-
saving measure. The consulting firm is tasked with providing advice on the legal implications of
Draper's behavior and creating a policy to prevent similar cases in the future, along with advising
Sturgis on MegaHurts' obligations concerning Viera's situation. The second issue involves
Amber Stone, an employee at the Burnaby store who is part of a union. Sturgis is looking into
cutting labor costs because the company faces financial difficulties. The consulting firm has been
asked to advise how to handle Stone's situation, including whether they can terminate her job or
reduce her hours. Regarding the first situation, the consulting firm suggests that a thorough
investigation into Draper's alleged sexual harassment should take place with appropriate
disciplinary action if found true. Additionally, an anti-harassment policy should be implemented
and communicated to all employees with related training to comprehend their rights and duties.
For Viera, the company has to meet employment and disability requirements and grant her any
necessary leave and benefits. Furthermore, reasonable accommodations for Viera when she
returns can be considered. As for Stone's case, the consulting firm encourages an evaluation of
the collective bargaining agreement with the union to identify if any reductions in force or hours
are permissible. Before terminating any staff members, the company should consider alternative
cost-saving measures, such as temporary layoffs or voluntary resignations. If termination is
unavoidable, Stone should be offered a fair severance package, and any applicable employment
and labor laws should be adhered to.
Analysis
This case study requires an examination of the relevant legal principles, case law, and
statutory provisions to respond. It will involve identifying and explaining the applicable legal
principles, case law, and statutory provisions related to the presented facts. Additionally,
collective agreement provisions will be discussed where relevant (Touloumakos, 2022). The
purpose is to have a comprehensive understanding of the issues and legal principles involved in
decision-making in such cases.
Various key legal principles effectively apply to the case. The first legal principle that
applies is that of employee privacy; employers must respect their employees' right to privacy in
the workplace and, therefore, cannot monitor communications or activities without knowledge or
consent except when there is a legitimate business reason (Touloumakos, 2022). Employee
privacy is a priority for a variety of reasons. Most notably, cultivating trust between employers
and employees hinges on ensuring the safety of personal data. Legally speaking, it is vital to
abide by all relevant laws and regulations surrounding employee privacy. Additionally,
upholding these rights is beneficial in terms of increased productivity and job satisfaction; when
employees feel their environment is secure and their boundaries are respected, they become more
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satisfied in the long run. Ultimately, employee privacy should be treated as paramount in any
workplace setting to promote a safe environment and create meaningful trust between employers
and employees. The second principle is workplace safety; employers are responsible for
providing safe working environments and preventing violence and harassment. Implementing a
safe workplace is an essential requirement to ensure the safety and security of employees while
they are clocked in. Not only is it the employer's responsibility, but creating a secure work
environment has numerous benefits for the business. It promotes positive morale, increased
productivity, and greater staff loyalty. It also encourages customer confidence, resulting in
sustained success. In addition, a safe working space prevents risks such as injury or death, lost
productivity, lawsuits, and reputation damage that can have devastating consequences for any
organization. When prioritized by employers, workplace safety creates a healthy culture where
employees feel valued and protected; this translates to greater employee satisfaction and low
absenteeism/staff turnover rates. The third principle is accommodation; employers must
accommodate employees with disabilities up until undue hardship. Accommodation is an
important concept for both employers and employees. For employers, it can help them create a
productive workplace by avoiding discrimination and keeping legal requirements in check. It
also has the potential to reduce turnover, increase loyalty, and ultimately improve job satisfaction
(Kay et al., 2022). Employees' needs should also be considered; allowing for modifications like
changes in work schedules or job duties can eliminate discrimination and make all the difference
to an employee's experience. In these ways, accommodation helps promote fairness in the
workplace and allows employees to perform their roles to the best of their abilities.
Regarding legal law, the Supreme Court of Canada established in R v Cole that
employees expect privacy in their workplace computers even when provided by their employer.
It means employers cannot search it without consent or warrant unless special circumstances
exist. In Canada (Canadian Human Rights Commission) v. Canada (Attorney General), the
Supreme Court held that employers must put policies in place to protect from harassment and
investigate when necessary. The Supreme Court of Canada's precedent-setting decision in the
case highlighted the importance of safeguarding employees against discrimination and
harassment in the workplace. Specifically, the case involved allegations by female Royal
Canadian Mounted Police (RCMP) employees that they had been subject to sexual harassment
by their male superiors. The decision held that employers are responsible for ensuring a safe and
equitable working environment free from harassment or discrimination, which has a
dehumanizing effect on an individual's dignity and human rights (Kay et al., 2022). The Court
determined that employers must have policies in place to prevent and address harassment,
including the proper education and training of employees, investigation of all claims of
harassment, and appropriate ramifications for those who are found guilty. By reinforcing these
standards, the ruling seeks to ensure a safe work environment free from intimidation or
discrimination. Employers now need to comply with this ruling by taking proactive measures to
alleviate potential issues before they arise. The decision made in Canada the case is a crucial
milestone for protecting employee rights and creating respectful workplaces.
On the other hand, statutory Provisions effectively apply to this particular case
(Touloumakos, 2022). The Canadian Human Rights Act makes it illegal for employers to
discriminate against employees on any prohibited ground, such as race, gender, or disability.
Canada's Human Rights Act of 1977 is an important legal framework for preventing
discriminatory practices and promoting a culture of mutual respect and equal opportunity. This
federal law prohibits employers from treating employees differently based on race, gender,
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disability, age, religion, or sexual orientation in any area that falls under federal jurisdiction. The
act also provides a process for individuals claiming to have been discriminated against –
investigations will then be conducted accordingly with potential remedies like compensation or
reinstatement (Kay et al., 2022). As such, The Canadian Human Rights Act is key to fostering a
diverse and inclusive nation by shielding our society members from discrimination. Building a
strong foundation for creating an equitable Canada with unparalleled tolerance and acceptance is
essential. Additionally, the Occupational Health and Safety Act (OSHA) states that workplaces
must be kept safe, including steps taken against violence or harassment. In this case, it seeks to
safeguard workers' safety, welfare, and rights in their places of employment. This legal document
establishes and maintains standards employers must adhere to ensure their personnel's physical
and psychological protection (Kay et al., 2022). Moreover, it prohibits workplace discrimination
in any form - concerning race, gender, disability, or age. It also obligates companies to promote a
non-discriminatory work atmosphere by preventing harassment and other discriminatory
conduct. This legislation guarantees equal treatment and respect for all staff regardless of
personal characteristics.
In this situation, the employer is monitoring emails/internet usage without consent which
violates the employee's right to privacy according to R v Cole; they also have received
harassment complaints but have yet to address it, violating their duty mentioned earlier; lastly,
due to employee's disability, they must provide accommodation up until undue hardship as
established by the duty to accommodate, making reasonable efforts such as assistance and
adjusting workload may be necessary.
Recommendations
Improve Communication
Improving communication is key in this situation, as it would not only help address the
issue of sexual harassment but also reduce legal risks and create a healthier work environment.
The major problem is that employees were not informed of the company's policy on harassment,
with the policy only being presented once via PowerPoint. Moreover, there was no guidance on
how to make a complaint under the policy (Kay et al., 2022). To fix this, it is important to
update the policy and ensure that all employees know and understand what constitutes sexual
harassment. Additionally, clear instructions should be provided on making a complaint and
ensuring that all complaints are investigated promptly, transparently, and confidentially. Besides,
improving communication can prevent rumors from running rampant in the workplace, like in
Viera's case, where her lawyer contacted Sturgis. Regular meetings and training sessions help
eliminate issues before they escalate and foster an environment where employees feel valued and
heard. It, in turn, leads to increased productivity, job satisfaction, employee engagement, and
retention - all of which positively impact morale and the company's bottom line (Kay et al.,
2022). Overall, improving communication would be an effective recommendation since it would
address sexual harassment issues, reduce legal risks and create a healthier work environment
through increased productivity and employee engagement. It is thus essential to ensure all
employees are informed on company policies and expectations while providing them with the
knowledge to address any future concerns for a safe and inclusive workplace.
Invest in Employee Training
In this case, investing in staff training is a wise suggestion as it can address various
issues. Firstly, it can help avoid future sexual harassment or other inappropriate behavior, as both
Draper nor Viera did not attend the presentation on the company's anti-harassment policy, and
the policy itself is unclear. With training, employees will be aware of the policy, recognize what
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constitutes sexual harassment, and be cognizant of how to make a report if needed (Kay et al.,
2022). Moreover, training may help create a positive, inclusive workplace atmosphere,
improving employee morale, job satisfaction, and retention rates. In this case, Draper's jokes may
have been intended to alleviate stress in the workplace, but they may have caused Viera's (and
other employees') unease. Employees will feel more respected and valued with appropriate
training on topics such as respect for diversity and inclusion in the workplace.
Additionally, investing in employee training can increase overall business performance.
When staff is well trained on their duties, they are more effective, productive, and better able to
answer customer queries, thus improving customer satisfaction and potentially upping sales
(Touloumakos, 2022). In this instance, Megahertz Ltd. has already launched an online shopping
app that has yet to succeed; providing staff with proper instructions on handling the app could
help improve its functioning and boost sales. Finally, training can help reduce potential legal
risks and liabilities from Viera's lawsuit since it needs to be clarified what her lawyer intended
with their message. Investing in teaching employees about the company policies and processes
shows that Megahertz Ltd has taken steps to avoid events like this from happening again, thus
reducing their liability and preventing costly legal matters from arising from this case
(Touloumakos, 2022). To sum up, all these points together, investing in employee training is
beneficial to both Megahertz Ltd., its staff, and customers alike; it can stop future cases of sexual
harassment from developing within the workplace as well as promote an environment where
everyone feels included while also increasing business performance by educating employees
properly on how to use systems like their online app effectively which will lead to growth in
customer satisfaction levels plus avoiding many legal issues that might occur from such cases
with proper instruction on policy procedures given company-wide.
Encourage Collaboration
Encouraging collaboration is an ideal suggestion for this situation for numerous reasons.
It can foster a more inclusive and supportive working atmosphere, which is key for ensuring the
employees' well-being and avoiding issues such as sexual harassment. By promoting
collaboration, employees are more likely to build cordial working relationships, which could
help curtail any tensions or disputes that may arise in the workplace (Yang & Lin, 2022).
Furthermore, collaboration can help promote creativity and innovation, which is essential for
businesses to stay competitive in today's market. By motivating employees to work together and
share their ideas and knowledge, organizations can generate more creative solutions to their
problems. It is especially important for companies like MegaHurts facing tough competition
from online retailers and other sources. Moreover, encouraging collaboration can help boost
employee morale and job satisfaction. When staff feels their input is valued and they are part of a
unified team pursuing a shared objective, they will be more likely to be invested in their job and
motivated. It could enhance job performance, lower absenteeism, and turnover, and heighten
staff loyalty. Finally, encouraging collaboration could help construct a solid organizational
culture involving teamwork, communication, and respect for others. By endorsing a culture of
collaboration, organizations can establish a more supportive and positive work environment that
promotes employee well-being and productivity (Yang & Lin, 2022). It could also lessen the
likelihood of sexual harassment, discrimination, or any other type of misconduct in the
workplace. In this case, encouraging collaboration is an apt recommendation, as it can create a
more inclusive, supportive, and innovative environment.
Define Clear Roles and Responsibilities
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At MegaHurts Ltd., it is a suitable recommendation to define clear roles and

responsibilities for several reasons. To begin with, it would help avoid and prevent any potential
issues of harassment or discrimination in the future. By setting out clearly defined policies and
procedures that emphasize appropriate workplace behavior, MegaHurts can ensure that cases
such as the alleged Draper-Viera incident do not escalate and cause legal or reputational risks to
the company. Moreover, clear roles and responsibilities can assist in making sure that all
employees are treated on an equal basis. It will help prevent hostility or bitterness from one
employee having more duties than another (Amadu & Anyarayor, 2022). Additionally, this
formality will enable managers to understand each individual's strengths and weaknesses better,
so they can assign tasks based on their employees' skillset, leading to greater job satisfaction and
involvement in the workplace. Finally, defining roles and responsibilities can make for a more
efficient atmosphere by avoiding redundant tasks and maximizing productivity, which is
essential in today's business world. To summarize, outlining clear roles and responsibilities is
beneficial for MegaHurts Ltd. as it reduces incidents of harassment or discrimination, provides
equity among employees, allows managers to understand their staff better, and improves
productivity levels in the workplace.
Investigate the Allegations
Investigating the sexual harassment allegations against Draper is the right thing to do for
numerous reasons. Firstly, it is important to take such allegations seriously, especially in a work
setting, as the impact of sexual harassment on victims can be long-lasting and cause a hostile
work environment for other employees. Therefore, the company must investigate these
allegations to determine if anything wrong has occurred and take proper steps if needed (Amadu
& Anyarayor, 2022). Second, investigating these claims shows that the company is devoted to
following ethical and legal standards. If the allegations are found true, it is important that
appropriate action is taken against Draper, so others know that such behaviors will not be
tolerated (Amadu & Anyarayor, 2022). It also safeguards the company from any potential legal
issues that might arise. Thirdly, a thorough investigation is needed to restore trust and confidence
in the workplace. Allowing both Draper and Viera a chance to present their side of events will
help ensure an impartial and fair investigation, leading to more satisfied employees who will
ultimately benefit the company. In summary, looking into Draper's alleged sexual harassment is
vital for numerous reasons: upholding ethical and legal standards, avoiding potential legal
liabilities, restoring trust in the workplace, and providing an impartial investigation with both
parties being heard. An impartial investigation will ensure any decision is and can help create a
safe work environment for everyone in the company.
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References
Kay, A., Levine, L., & Shapiro, E. (2022). Reducing Anxiety Through Workplace
Communication During COVID-19: Who, What, When, and How. International Journal
of Business Communication, 23294884221105580.
https://doi.org/10.1177/23294884221105580
Amadu, M. F., & Anyarayor, B. K. (2022). Understanding the Influence of Communication on
Employee Work Satisfaction: Perspectives from Decentralised Government Institutions
in the Oti Region, Ghana. Education Research International, 2022.
https://doi.org/10.1155/2022/5024703
Yang, Y. K., & Lin, W. S. (2022). How to enhance workplace climate through telework
communication approaches in organization during the era of changes? Evidences of
authentic leaders. Asia Pacific Management Review.
https://doi.org/10.1016/j.apmrv.2022.07.002
Touloumakos, A. K. (2022). Taking a step back to move forward: understanding communication
skills and their characteristics in the workplace. Studies in Continuing Education, 1-20.
https://doi.org/10.1080/0158037X.2022.2030698
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Appendix
Policy Addressing Sexual Harassment Tailored to the Megahurts
At MegaHurts, we take our commitment to providing a safe and secure work environment for
our employees and visitors seriously. We have zero tolerance for sexual harassment, gender-
based discrimination, or retaliation. Our policy is designed to protect the rights of everyone at
MegaHurts and create an environment free from these forms of injustice. All employees must
abide by this policy and adhere to the standards we have set forth.
Definition of Sexual Harassment: Sexual harassment is any unwelcome, intimidating, hostile, or
offensive behavior or conduct of a sexual nature in the workplace. It could encompass unwanted
physical contact, requests for sexual favors, offensive comments or jokes about a person's sex
life or gender identity, displaying inappropriate materials with sexual content/theme, and any
other form of evil behavior that puts an employee at unease.
At MegaHurts, we are dedicated to maintaining a safe and respectful working environment. To
further this goal, we have developed protocols to prevent sexual harassment and promote equal
treatment for all employees. Our measures include:
1. Education and Training - Our company will offer comprehensive training and education
to all personnel on sexual harassment. It includes learning about its effects and how to
prevent them from happening.
2. Reporting Protocol - Establishing a clear, confidential reporting protocol is important for
our employees if they ever experience sexual harassment. Thus, our policy allows
workers to report violations to their direct supervisor, an HR representative, or our
designated complaint officer. All complaints are treated with utmost seriousness and
confidentiality.
3. Investigation and Resolution - When a case of sexual harassment has been reported, an
impartial investigation must be initiated without delay. The investigative process will
reasonably occur, with both parties being given ample opportunity to be heard throughout
the proceedings. Upon confirmation that an offense took place, decisive corrective action
will be taken accordingly.
4. Retaliation: MegaHurts will strictly prohibit retaliation against employees who have
brought forth harassment claims or aided in investigations. All suspicions of such
behaviors will be investigated and addressed accordingly.
5. Reviews: To guarantee this policy is effective and meets the needs of employees, regular
reviews and updates should be conducted.
In sum, MegaHurts is dedicated to fostering a workplace environment of respect for all
employees. By closely adhering to our established policies and guidelines, we can ensure that
sexual harassment is prevented and that each employee feels valued and respected. We invite
everyone to do their part to make MegaHurts a safe place for all.