Key legal question
Whether the employee’s timecard manipulation constituted just cause for immediate dismissal under Art. 337 OR.
Extracted holding
The single timecard manipulation, in light of the employee’s otherwise good record and the circumstances, did not amount to an important reason making continuation of the employment relationship intolerable.
Extracted reasoning
Art. 337 OR requires a particularly serious breach or, for less serious breaches, prior warning and repetition. The court held that although manipulating a time clock is a serious breach of loyalty, this incident was isolated, occasioned by a specific event, and the employee was not in a true managerial position. The employer could still have continued the relationship until the ordinary termination date.