Breach of a Last Chance Agreement justifies termination

In 2026 CanLII 29942 (BC LA) | Trinity Western University v Educate BC, CLAC Local 62 | CanLII, Arbitrator Knapp Arbitrator Knapp upheld a last-chance agreement. 

The grievor, a librarian with 43 years of service and a discipline-free record, was initially suspended for three weeks in November 2024 after making disparaging remarks about the University Librarian during a staff meeting. Through a negotiated settlement, the suspension was reduced to eight days in exchange for the grievor’s written agreement that any future misconduct involving insubordination, disrespect, or violations of the University’s conduct standards would lead to immediate termination, a last change agreement.

On April 15, 2025, during a one-on-one check-in with his supervisor, the grievor reiterated criticisms similar to those that had prompted his earlier discipline. He was subsequently terminated.

Arbitrator Knapp noted this last-chance agreement was unusual as it resulted from a negotiated suspension reduction rather than termination, and that the bargain favoured the University more than the grievor. Further, the agreement did not include the phrase last-chance. Nevertheless, she found that this was the bargain the parties had negotiated, with clear expectations and consequences. The grievor had been given time to reflect on his behaviour before repeating the same conduct that led to the original discipline. Arbitrator Knapp concluded that there were no compelling reasons to mitigate the termination and dismissed the grievance.

What do you need to know?

This decision indicates that a last-chance agreement can still be effective even if the label is absent from the document. When the parties clearly agree that any further specified misconduct will lead to termination for just cause, arbitrators will need strong and compelling reasons to deviate from that outcome.