Authors: Stephanie McDonald and Baljinder (Bal) Singh Tiwana
What is a Termination for “Just Cause”?
In Ontario, a termination for just cause occurs when an employer ends the employment relationship immediately due to allegations of serious employee misconduct. If there is a genuine legal basis for a just cause termination, the employee is not entitled to reasonable notice (although the employee may be entitled to termination and severance pay under the Employment Standards Act as described below).
Since the consequences of a just cause termination are severe – immediate termination without notice – the legal threshold for proving just cause termination is high. The employer must demonstrate that the alleged misconduct was so serious that it justified immediate dismissal, and that the termination was reasonable in the circumstances. As such, just cause terminations are generally reserved for the most severe forms of employee misconduct.
If your employer alleges it has just cause to terminate your employment, seek legal advice immediately. You may have been wrongfully dismissed. Do not accept any offer or sign any agreement without first consulting a lawyer.
Examples of Misconduct That May Constitute Just Cause
- Workplace violence, threats, or harassment
- Fraud
- Theft
- Dishonesty or misrepresentation
- Insubordination
- Conflict of interest
Examples of Conduct That Typically Does Not Amount to Just Cause
- Accidental or unintentional errors
- Minor or isolated workplace policy breaches
- Poor performance
- Isolated incidents of minor misconduct
Progressive Discipline
Ontario employers are more likely to establish a genuine basis for the a just cause termination where they follow a progressive discipline process. This includes:
- Investigating the alleged behaviour
- Providing clear warnings
- Giving the employee a fair opportunity to improve or correct their conduct
- Giving the employee the reasonable opportunity to respond to any allegations
However, in cases where serious misconduct (e.g., theft, dishonesty, etc.) can be proven, employers can lawfully terminate the employee immediately without engaging in progressive discipline.
If an employer fails to investigate properly, provide documentation, or offer the employee a chance to properly respond and improve, they will be less likely to establish that the just cause termination was lawful entitling the employee to reasonable notice.
Context is Everything
Each case of alleged misconduct must be assessed in context to determine whether a just cause termination is justifiable in the circumstances. Factors considered include:
- The nature and seriousness of the misconduct
- The employee’s role and seniority
- The length of employment
- The employee’s disciplinary history
- Whether the misconduct was intentional or repetitive
Do I Receive Severance When My Employer Claims Just Cause?
Under common law, when your employer has a lawful basis for a just cause termination, you do not receive reasonable notice.
However, you still receive termination pay and severance pay under the Ontario Employment Standards Act, 2000 unless your misconduct also amounts to wilful misconduct, disobedience, or wilful neglect of duty that is not trivial and that the employer has not condoned. Courts describe this much higher standard than just cause as “being bad on purpose.”
Therefore, in many cases where an employer establishes a lawful basis for a just cause termination, the employee may still have entitlements under the Employment Standards Act.
In any event, do not sign any documents upon the termination of your employment for just cause without speaking with a lawyer. Your employer may try to persuade you that you are not entitled to anything. A lawyer can help you assess whether there is a lawful legal basis for the termination, and what amounts are owing to you.
How Can I Protect My Reputation After a Just Cause Termination?
If you are involved in a dispute about a just cause termination, you can negotiate an early settlement with your employer to avoid going to court. As part of a settlement, you may be able to negotiate protections to help safeguard your professional reputation and future, such as:
- Asking the employer to agree to a non-disparagement clause to prevent your employer from making negative/disparaging statements about you
- Asking the employer to provide a positive or neutral reference letter to support you in your job search
- Asking the employer to amend your record of employment (ROE) to assist you in obtaining Employment Insurance benefits
- Asking the employer for career transition support to help you transition your career more swiftly
Conclusion
Being terminated for just cause can have serious legal and reputational consequences. Many employers allege just cause even where there is no legal basis for doing so. If you have been dismissed for just cause, you may have legal grounds to challenge it.
Never sign a severance agreement without first consulting a lawyer. At Workplace Sage Legal, we can review your agreement and help protect your professional interests; by helping you potentially negotiate mutually acceptable terms that compensate you fairly and minimize damage to your professional future.
DISCLAIMER: This article/blog is provided for educational/informational purposes only. The views expressed are solely those of the author(s) and should not be attributed to any other party not listed as the author(s).
While reasonable efforts have been made to ensure the accuracy of the content provided, it does not constitute legal advice. Prior to relying on any aspect of this article, you should consult with a suitably qualified legal professional promptly in your relevant jurisdiction, to obtain advice tailored to your individual circumstances
