Considering that your average employee in the US (and it’s safe to assume that numbers in Canada are similar) is productive for less than 3 hours in your average 8 hour work day, this is kind of ridiculous. If you’re paying a consultant, sure you want to get an hour work for an hour pay but an employee?
Reach CPA can consider this a win short term but I anticipate they’ll be out of business in 3 years or less. They’ll lose employees and nobody is going to apply to replace them. Seems like a stupidly small amount of money to alienate your present and future workforce over to me.
Edit: not to mention that this is a cowardly and badly broken way to “manage” employees. An effective manager would have actually managed her and counseled her on what the company expected. Instead they went the chicken shit route of management, didn’t work with her and instead used tech to look for excuses to fire her. This company needs to go down in flames. If you can’t be bothered to manage your employees, you shouldn’t be in business. Period.