A former Whitehorse daycare owner did discriminate against two employees and failed to prevent sexual harassment at her workplace, Yukon Human Rights Board of Adjudication has found.

Its decision was released Tuesday afternoon.

Christina Hassard was doing business as the now-closed Childhood Discoveries Preschool in Riverdale. She employed a group of people, including Willow Lacosse and Jessica Dyck.

In early 2012, Lacosse and Dyck filed complaints with the territory's human rights commission.

They claimed another employee, Mike Gustus, was making sexually inappropriate comments and jokes at work, which made them uncomfortable. They said Hassard did nothing to stop it.

Under Section 35 of the territorial Human Rights Act, "Employers are responsible for the discriminatory conduct of their employees unless it is established they did not consent to the conduct and took care to prevent the conduct or, after learning of the conduct, tried to rectify the situation.”

In a statement, the commission says the board of adjudication will issue detailed written reasons behind its decision next month.

During the hearing in the March, both women described a work environment where she said Gustus would make sexually suggestive comments while Hassard and other employees were present.

Hassard said she was shocked by the allegations. She told the board she'd never witnessed nor heard anything inappropriate in the workplace.

Hassard told the board she would have stepped in if anyone had raised concerns about alleged sexual harassment in her workplace.

Lacosse, 24, and Dyck, 23 testified to being uncomfortable coming to Hassard with their concerns because of her close relationship with Gustus, who was also the daycare's co-director.

Lacosse claimed she was fired after objecting to Gustus' behaviour.

Dyck alleged she was dismissed because of her friendship with Lacosse.

Complaints were also filed against Gustus, but those were settled, the commission's lawyer said at the time of the hearing.

In her written closing statement, Hassard called the young women's claims "fictitious and vexatious.”

Lacosse and Dyck denied it was their intention to have the daycare shut down.

In the commission's statement, director Heather MacFadgen says, "Our staff are willing to help both employers and employees understand their rights and responsibilities under the Yukon Human Rights Act.”

The commission provides sample harassment policies that can be used as guidelines for businesses looking to create their own versions.

The documents are available on the commission's website at www.yhrc.yk.ca or at its offices, 101-9010 Quartz Rd. in Whitehorse.

The commission also runs a confidential help line at 667-6226 or 1-800-661-0535.

See coverage of another commission case.