By: Stephanie McDonald and Baljinder (Bal) Singh Tiwana
Employers in Ontario sometimes allege just cause when terminating an employee. This is the most severe form of dismissal. It carries serious consequences. If an employer proves just cause, the employee is not entitled to notice or severance pay.
For project managers, this issue is becoming more common. Employers increasingly blame them for project failures or delays and attempt to label those performance related issue(s) as “misconduct”.
This blog aims to clarify the legal distinction between poor performance and misconduct, and help project managers protect themselves from unfair treatment and being terminated wrongly.
Just Cause: A High Legal Threshold
Just cause is reserved for the most serious forms of misconduct. Thus, it is conduct that breaks the employment relationship down irreparably. Courts in Ontario set a very high bar. Employers must prove that the employee’s actions were so severe that continued employment is no longer workable.
Examples may include:
- Fraud or dishonesty
- Serious insubordination
- Harassment or workplace violence
- Gross negligence
Project Delays Are Not Automatically Misconduct
Project delays caused by operational factors outside a project manager’s control, rarely meet the high legal threshold required to establish just cause. Despite this, employers may unfairly attribute blame to the project manager.
Common causes of delays that do not amount to misconduct include:
- Unrealistic timelines set by leadership
- Unclear or inconsistent direction from leadership
- Understaffed teams
- Shifting scope or priorities
- Delayed approvals
- Resource limitations
Misconduct vs. Poor Performance: The Legal Distinction
Understanding the difference is essential.
Misconduct involves wilful or reckless behaviour. The employee knows the expectations and deliberately fails to meet them or acts in a way that harms the employer.
Poor performance, in contrast, relates to an employee’s inability to meet expectations i.e. due to lack of capacity or skill, rather than their intent. It may involve mistakes, missed deadlines, or lack of results, however without intentional wrongdoing. Thus, poor performance on its own will rarely be enough to justify a just cause termination.
Courts recognize that performance issues require a fair process. Employers must:
- Clearly communicate expectations
- Provide training and resources
- Offer feedback and multiple prior warnings
- Give a reasonable opportunity to improve over a reasonable period i.e. progressive discipline.
Without these steps, terminating an employee for just cause becomes very difficult to justify, and the employee may be entitled to common law reasonable notice or severance pay, depending on the circumstances.
If an employer attempts to strip an employee of their minimum statutory entitlements, such as those under the Employment Standards Act, they will be held to an even higher legal threshold called wilful misconduct.
One Missed Target Is Typically Not Enough to Establish Just Cause
A single missed deadline or failed project rarely justifies dismissal for just cause. Courts assess the full context, including:
- The employee’s overall performance history
- The complexity of the role
- External factors affecting the project outcome
- Whether the employer contributed to the problem
In most cases, one incident, typically does not meet the legal threshold.
The Employer’s Duty: Support Before Discipline
Before alleging just cause, employers must act fairly. That includes:
- Providing proper onboarding and training
- Setting realistic expectations
- Offering consistent feedback
- Addressing concerns early
- Allowing time for improvement
If your employer failed to give you a fair opportunity to improve and rushed into termination, you should seek legal advice immediately.
What a Performance Improvement Plan (PIP) Usually Signals
In many cases, a PIP is a serious warning, not just routine feedback. It often means:
- Your employer has documented concerns about your performance
- You are being placed on a formal track toward discipline or termination
- The company is building a paper trail to potentially support a dismissal for just cause
What Project Managers Should Do If They Are Being Unfairly Blamed
If you believe your employer is mischaracterizing performance issues as misconduct, take proactive steps:
- Preserve evidence: Keep emails, reports, timelines, and project documentation
- Document changes: Record shifting instructions, scope changes, and delays outside your control
- Stay professional: Maintain composure in all communications
- Clarify expectations: Ask for written confirmation of priorities and deadlines
- Seek legal advice early: Do not resign or sign any documents under pressure
Conclusion
Employers sometimes allege just cause because it is the quickest and least expensive way to terminate employment, if it goes unchallenged. However, wrongful allegations can expose employers to significant legal liability.
Project managers operate in complex, high-risk environments. Not every delay or failure reflects misconduct. Understanding your rights, and the legal distinction between misconduct and poor performance, can make all the difference in protecting your career and reputation.
At Workplace Sage Legal, we assist employees in navigating wrongful dismissal and just cause allegations. We can help project managers assess the strength of their employer’s position, determine whether your rights have been violated, and pursue appropriate remedies, including compensation for lost entitlements. Whether through negotiation or litigation, our goal is to ensure that you are treated fairly and that your professional reputation and career is protected, as best possible.
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Learn more about employment law through the articles below:
- Who is entitled to Reasonable Notice, and how is it calculated?
- Just Cause Terminations in Ontario
- Recruited Into Tech, Terminated Months Later: Your Rights in Ontario
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.
