Volunteer Dismissals: Ensure Fairness To Avoid Liability

Non-profits should ensure that any decision related to a volunteer’s dismissal is not only well-founded but also follows the organization’s internal processes for performance management and discipline

In a significant decision for volunteer and non-profit organizations, the Ontario Superior Court of Justice recently ruled in Hannan v. Scouts Canada, 2024 ONSC 5361, that an 86 year old volunteer was wrongfully terminated from his volunteer role.

Wayne Hannan, a volunteer “Scouter” for Scouts Canada since 1958, challenged the termination of his volunteer role after his volunteer application was not renewed due to alleged safety concerns and resistance to program adaptation. This decision sheds light on procedural requirements for non-profit organizations when dealing with volunteer dismissals and highlights the importance of procedural fairness.

Although the Court did not award any damages to Mr. Hannan, the Court ordered that Scouts Canada pay Mr. Hanan’s legal costs in the amount of $50,000.

Volunteer as a Contractual Relationship

Justice Calum MacLeod held that the relationship between Mr. Hannan and Scouts Canada was contractual, thereby requiring procedural fairness. The Court noted that despite being a volunteer role, Mr. Hannan’s relationship with Scouts Canada carried obligations akin to a contractual agreement. Scouts Canada’s policies promised support for volunteers, progressive discipline, and clear procedures in disciplinary actions, creating an expectation that these policies would be followed.

This decision underscores that organizations cannot overlook procedural policies with volunteers simply because they are unpaid. In Mr. Hannan’s case, the policies which Scouts Canada set up for volunteer discipline and performance management applied to Mr. Hannan’s volunteer application, making his dismissal subject to judicial review.

Procedural Fairness in Volunteer Dismissals

Justice MacLeod highlighted that Hannan was denied procedural fairness. Although Scouts Canada cited “safety concerns” and “resistance to program adaptation” as reasons for Hannan’s non-renewal, the Court found no evidence to substantiate these claims. Instead, the Court observed that Mr. Hannan had received no warnings or feedback about his alleged performance issues. Scouts Canada did not provide any specific incidents or documentation despite its policies mandating progressive discipline and record-keeping.

The Court emphasized that if a volunteer’s performance or behaviour is under scrutiny, the organization should document issues, provide feedback, and offer the volunteer an opportunity to respond or improve. Arbitrarily dismissing a volunteer without following these steps is inconsistent with the principles of fairness and transparency, especially when an organization’s own policies set clear procedures for discipline and dismissal.

Declaratory Relief and $50,000 Costs Award

Although Hannan was not awarded damages for wrongful dismissal (since he was a volunteer and did not suffer financial loss), the Court granted declaratory relief, affirming that Scouts Canada breached its procedural obligations. Additionally, the Court ordered Scouts Canada to pay Hannan’s legal costs on a substantial indemnity basis, amounting to over $50,000. This cost award serves as a cautionary reminder for non-profits about the potential financial ramifications of failing to adhere to fair and transparent procedures.

Implications for Non-Profit Organizations

This case serves as a wake-up call for non-profit organizations regarding their handling of volunteer dismissals. Volunteers often commit substantial time and effort, creating expectations of fair treatment in line with the organization’s values and stated policies. When an organization dismisses a volunteer, especially on grounds related to conduct or performance, it must adhere to procedural guidelines to avoid arbitrary or unfair outcomes.

For non-profits, this ruling means:

Policies Are Binding: If an organization has policies for volunteer discipline and performance management, these must be applied consistently. Volunteers can reasonably expect that policies on conduct, feedback, and dismissal will be followed, creating a quasi-contractual relationship.
Documentation and Communication: Organizations must document any issues related to a volunteer’s performance and provide them with feedback. Failure to document concerns and communicate them transparently can lead to allegations of unfair treatment.
Importance of Procedural Fairness: The principle of procedural fairness applies even in volunteer roles. Organizations should ensure that any decision related to a volunteer’s dismissal is not only well-founded but also follows the organization’s internal processes for performance management and discipline.
Potential Cost Implications: Failing to provide fair treatment could lead to costly legal proceedings, as demonstrated by the significant costs awarded in this case. This case highlights that even without damages for wrongful dismissal, organizations can incur substantial legal costs if procedural fairness is not observed.

A Call to Action for Non-Profit Organizations

The Hannan v. Scouts Canada decision highlights the importance of procedural fairness in volunteer dismissals, especially when policies are in place. Non-profits should take heed of this ruling and ensure that they handle volunteer relationships with the same level of care as employee relationships. By adhering to transparent and fair procedures, organizations can avoid disputes and foster a respectful environment for volunteers and staff alike.

If your organization relies on volunteers, ensure that you have clear, well-documented policies for volunteer management, including disciplinary and dismissal procedures. Training leaders and administrators on these policies is crucial to avoid arbitrary dismissals that could harm the organization’s reputation and lead to costly legal challenges.

How Minken Employment Lawyers (Est. 1990) Can Assist

At Minken Employment Lawyers (Est. 1990), we have extensive experience advising non-profit organizations on best practices for volunteer and employee management. Our team can help you develop, review, and implement policies that ensure procedural fairness and compliance with legal standards. If you have questions about volunteer management or need legal support to protect your organization, contact us today. Call us at 905-477-7011 or email us at [email protected], or complete an online submission. Our experienced team is here to help.

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Please note that this article is for informational purposes only and does not constitute legal advice.