Terminating Employment in Ontario: Just Cause vs. Without Cause

In Ontario, when an employer decides to end an employee’s tenure, they have two primary avenues: termination “for cause” and termination “without cause.”

If an employer claims just cause for dismissal, the ‘all or nothing’ rule means that if they say there is, they must prove it with valid legal reasons. If you don’t do it, you risk being sued for wrongful dismissal and having to pay severance entitlements.

The Importance of Employment in Ontario

Employment is a significant component of a person’s life; it is a primary source of financial support and a significant factor in their sense of self and emotional well-being.

Employment is ‘one of the most fundamental aspects of a person’s life’, and the courts are aware that it is ‘one of the most fundamental aspects of a person’s life’ and that it ‘provides the individual with a means of financial support and, as importantly, a contributory role in society.’

This understanding is essential because it shows how high the burden of proving just cause for termination is on employers. The legal system gives dismissals a profound effect on a person’s life, and therefore they should be justified and fair.

Consulting with a Toronto employment lawyer can help you understand your rights in such situations and ensure they are fully protected.

Notice of Termination

In Ontario, “notice of termination” is the period an employer has to give an employee before it ends their employment. During this notice period, the employee will continue to work regular hours and duties at the same pay rate.

Under the Employment Standards Act (ESA), the minimum notice periods are outlined depending on how long the employee has been with the company. If you don’t adhere to these standards, you risk getting into legal trouble.

Just Cause for Termination

Termination “for cause” occurs when an employee commits serious misconduct that destroys the employment relationship. In employment law, such a termination is as serious as “capital punishment,” with its immediate effect without prior notice and severance pay.

Courts determine whether severe misconduct warrants immediate dismissal. They consider the context of the misconduct, the proportionality of the employer’s response, and whether progressive discipline measures were previously applied. Employers must show that termination was a reasonable and necessary response to the employee’s actions.

Examples of Just Cause for Termination

Several scenarios may constitute just cause for termination, including:

  • Theft: Stealing company property or company funds.
  • Dishonesty: Giving false information or giving a false impression of facts.
  • Serious Incompetence: Failing to perform job duties to an acceptable standard consistently.
  • Violence: Physical altercations or threats in the workplace.
  • Insolence and Insubordination: Disobeying lawful instructions with will and showing disrespect to superiors.
  • Willful Misconduct: Actions that are deliberate and which harm the employer’s interests.
  • Habitual Neglect of Duty: Failing continuously to adhere to job responsibilities.
  • Disobedience: Not complying with reasonable workplace rules.
  • Conflict of Interest: Doing things that are against the employer’s interest.

Just cause is a fact-driven determination, and courts evaluate each case on its particular facts and circumstances to decide whether just cause exists. Consulting with an employment lawyer in Toronto can help navigate these complexities and ensure a thorough understanding of the rights and obligations involved.

Both employers and employees are required to adhere to Ontario employment law requirements. This can result in serious legal consequences. An experienced employment lawyer can consult with you and help you understand the complexities of employment law and protect both parties’ rights.

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As a business communication specialist, Alice Williams shares tips on improving presentation skills and public speaking. He believes clear communication is key to professional success.