By: Stephanie McDonald and Baljinder (Bal) Singh Tiwana
What Is a “Just Cause” Termination?
“Just cause” is the most serious allegation an employer can make. Rooted in common law, it sets a very high legal threshold and applies only in exceptional circumstances.
If an employer establishes just cause, they can terminate employment immediately—without notice, termination pay, or severance.
However, the standard is demanding. The employer must prove misconduct serious enough to irreparably damage the employment relationship. Courts typically reserve just cause for extreme behaviour, such as fraud, theft, or serious dishonesty. Poor performance alone rarely meets this threshold.
The employer bears the burden of proof and must support the allegation with clear, and compelling evidence.
The Reality: Employers Use It as a Tactic
Some employers misuse “just cause” as a negotiation strategy. Some employers allege cause without sufficient evidence, or sometimes without any evidence at all. Rather than relying on proof, they rely on pressure. That pressure creates urgency, uncertainty, and fear, all designed to push you toward a quick decision. This is a psychological strategy used to pressure you into accepting a lowball offer.
Their goal is simple: get you to accept a lowball offer and walk away.
Many employers understand that their just cause claim may not withstand court scrutiny. Rather than risk litigation, they try to resolve the matter quickly and at minimal cost.
This strategy often works—especially when employees:
- feel intimidated by the allegation
- do not understand their legal rights
- accept the offer without seeking legal advice
In many cases, those lowball offers would not survive legal scrutiny.
The Lowball Playbook
Employers often follow a predictable pattern:
- They allege just cause
- They assert that you are entitled to nothing
- They offer a reduced payout “as a gesture of fairness”
- They pressure you to sign a full and final release contract (“release”)
Once you sign that release, you typically surrender your right to challenge the termination—even if the employer’s claim was weak or unfounded.
In most cases, there is no going back.
What You Should Do
Stay calm. Move deliberately. Protect your position.
- Do not sign anything immediately
- Do not accept the allegation at face value
- Request the evidence supporting the employer’s claim(s)
- Get legal advice before responding
A single informed conversation can significantly change the outcome.
Watch for Bad Faith
Some employers go further and act in bad faith.
They may:
- make allegations they cannot prove
- misrepresent your legal entitlements
- apply improper pressure to force a quick settlement
This conduct matters.
If the matter proceeds to Court and the employer fails to prove just cause, the termination may constitute wrongful dismissal. You may then be entitled to damages, including additional compensation for bad faith conduct.
Conclusion
A just cause allegation is serious—but an allegation is not proof. Pause. Get advice. Understand your rights before you act. Do not let pressure dictate your decision.
Workplace Sage Legal can guide you through every step. If your employer alleges just cause, do not respond or accept any offer without legal advice.
One conversation could change the outcome.
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Learn more about employment law through the articles below:
- Just Cause Terminations in Ontario
- Who is entitled to Reasonable Notice, and how is it calculated?
- Ontario Severance Packages: Why You Should Almost Never Accept the First Offer
DISCLAIMER: This article/blog is provided for educational/informational purposes only. This blog does not constitute legal advice. Do not rely on any advice before speaking with a lawyer. This blog does not form a solicitor-client relationship.
