The binding legal principles established are: (1) The parity principle in disciplinary proceedings does not require an employer to treat an employee found guilty of misconduct the same as another employee who was acquitted of similar charges because the employer failed to prove the misconduct. (2) In determining whether conduct constitutes sexual harassment, individual incidents must be assessed cumulatively and contextually, taking into account the power relationship between the parties, the employee's position and responsibilities, and the overall pattern of behaviour. (3) Under workplace sexual harassment policies that define harassment as "unwelcome conduct of a sexual nature," the complainant's perception and experience of whether conduct was offensive and unwelcome is the primary determinant. (4) When reviewing arbitration awards under the Herholdt test, if the arbitrator's reasoning is flawed but the outcome could still reasonably be reached on the evidence, the court may uphold the outcome while correcting the reasoning. (5) Where an arbitrator finds that the trust relationship has become intolerable and reinstatement is inappropriate due to proven serious misconduct, it is unreasonable to simultaneously find the dismissal substantively unfair, as intolerability of the employment relationship supports dismissal as the appropriate sanction. (6) Verbal conduct including "jokes" and comments about nudity or sexual matters, physical touching with sexual undertones, and innuendos about affairs can constitute sexual harassment when unwelcome, particularly in supervisor-subordinate relationships.