When Employment Relationships Go Wrong: Post-Termination Misconduct

When an employment relationship ends, most people move on quietly. But every so often, a former employee crosses the line, and when they do, Ontario courts have powerful tools available to address harassment, misuse of confidential information, reputational attacks, and other post-employment wrongdoing.

A recent court decision provides an important reminder for employers seeking to protect their business and employees navigating termination, severance packages, or constructive dismissal situations. The case involved a former employee who harassed his former manager, contacted clients under aliases, published damaging online reviews, and retained confidential business information after signing a release.

The Court’s response was unequivocal: post-termination misconduct will not be tolerated, and employers have access to important remedies to stop it.

This Toronto employment lawyer blog breaks down what happened, why it matters, and what both employers and employees should understand about confidentiality obligations, severance agreements, and post-employment rights. It also highlights when to consult an employment lawyer Toronto, a severance package lawyer Toronto, or a wrongful dismissal lawyer Toronto, depending on your situation.

A Senior Employee’s Departure Spirals Into a Campaign of Harassment

The case centred on a former senior leader at CleanMark Group. During his 2.5-year tenure, he managed major clients and handled sensitive corporate information, the kind of access that typically triggers strict confidentiality obligations in any well-drafted employment agreement.

Upon termination without cause, the employer provided an enhanced severance package, and the employee signed a full and final release, which is a document that prevents the employee from bringing future claims against the employer, such as a wrongful dismissal claim. Anyone who has been offered a severance package should consider having an Ontario employment lawyer review negotiate severance package terms before signing, as agreements like these carry lasting legal consequences.

Despite receiving severance and signing the legal release, the former employee embarked on a prolonged pattern of misconduct which the employer described as “a relentless campaign of harassment and defamation, in an effort to extort and aggravate,” including:

• Harassing calls, emails, and text messages to his former manager

• Threatening legal action and sending cryptic communications to staff

• Emailing major clients from anonymous accounts

• Offering to disclose confidential business information

• Posting hundreds of negative and defamatory Google reviews that disrupted the company’s ability to compete

• Attempting to extort money in exchange for ceasing his behaviour of making disparaging communications with CleanMark’s clients.

The employer attempted to address the situation informally, including sending a cease-and-desist letter, a step often recommended by an employment lawyer Toronto when former employees violate obligations. But the behaviour escalated.

Eventually, the employer discovered that the former employee had downloaded his entire work computer drive before termination, including sensitive client and financial information that represent 60% of CleanMark’s annual revenue.

Employer Turns to the Court for Protection and are Successful

Faced with ongoing harassment, reputational harm, and a real risk of client loss, the employer commenced legal action. Because the former employee failed to defend the lawsuit, he was noted in default, meaning that the allegations were deemed and accepted as true for the purpose of the motion.

The employer and the manager sought powerful remedies, including:

1. An interlocutory injunction

The employer asked the court to restrain wrongful behaviour while the lawsuit proceeds, by specifically ordering the former employee to stop harassing staff and clients, and to cease using or sharing confidential information.

2. An Anton Piller order

Sometimes described as a civil search warrant, an Anton Piller order allows for the search and seizure of evidence when there is a real risk it could otherwise be destroyed. It is one of the rarest and most intrusive remedies available in Canadian civil litigation.

3. The return and deletion of all confidential company information

4. Financial costs

The employer asked the Court to hold the former employee financially accountable for the legal steps needed to stop the misconduct.

Why the Court Granted Some of these Remedies

The court granted sweeping relief in the employer’s favour, awarding over $34,000 in costs and issuing broad injunctions.

The Court found:

• The former employee had clearly breached confidentiality obligations in his employment contract.

• Retaining and threatening to disclose confidential information posed a real risk of reputational harm, client loss, and commercial damage.

• The former manager suffered serious emotional distress as a result of the ongoing harassment.

• There was strong evidence that the employee had copied confidential data to his personal devices, creating a significant risk of evidence destruction.

This justified the rare and extraordinary Anton Piller order.

For employers, this case shows that courts will act quickly to stop ex-employee misconduct, especially when confidentiality breaches threaten business operations. For employees, it underscores the importance of understanding the legal weight of confidentiality clauses, severance releases, and post-employment obligations.

Lessons for Employers: Protecting Your Business Before and After an Employee Leaves

This case highlights several critical practices employers should follow, ideally with the guidance of an experienced employment lawyer Toronto.

1. Strong Employment Contracts Are Your Best Defence

Employers should ensure that employment contracts:

• Clearly define what qualifies as confidential information

• Set out post-employment obligations

• Include enforceable confidentiality provisions

• Are reviewed periodically to reflect business changes

A well-drafted employment contract can be the difference between minimal risk and substantial exposure. Consulting an employment contract review lawyer can help employers maintain enforceable, up-to-date documents.

2. Document Everything

When misconduct occurs, whether during employment or after termination, careful documentation is crucial. Emails, messages, client complaints, online postings, and other evidence can significantly strengthen an employer’s case.

3. Act Quickly When Misconduct Arises

The most powerful legal remedies, such as injunctions and Anton Piller orders, often require fast action. Delaying can undermine the urgency required for these remedies. Employers should immediately consult an employment lawyer Toronto when they discover:

• Confidential information has been copied or shared

• A former employee is contacting clients

• Online defamation or harassment occurs

• Threats or extortion attempts are made

Prompt legal advice may be essential to limit further damage.

Lessons for Employees: Know Your Rights and Your Limits

Employees also have important takeaways from this decision. Consulting a wrongful dismissal lawyer Toronto, severance package lawyer Toronto, or constructive dismissal lawyer in Toronto early in the termination process can help prevent missteps.

1. Severance Agreements Are Binding

Once you sign a severance release, you typically cannot bring further claims. Before signing, always review negotiate severance package terms with a lawyer who can help:

• Determine whether the severance is fair

• Negotiate additional compensation

• Protect your future rights

2. Confidentiality Obligations Don’t End With Termination

Most employment contracts, especially for senior employees, contain confidentiality clauses that continue after employment ends. Retaining or using confidential information can lead to injunctions, damages, and even orders to search your devices.

3. Harassment, Defamation, and Online Attacks Carry Serious Risks

Calling, texting, posting negative reviews, or contacting clients is not only unproductive — it can lead to significant legal consequences, including:

• Court-ordered injunctions

• Financial penalties

• Damage to future employment prospects

If you believe you were wrongfully dismissed or mistreated, the appropriate step is to consult a wrongful dismissal lawyer Toronto, not to engage in retaliatory behaviour.

Final Thoughts: Protecting Workplace Relationships After They End

This Ontario decision is a powerful illustration of how courts will respond when a former employee crosses the line. It also demonstrates that both employers and employees must understand their rights and obligations when a job ends.

For employers, proactive legal strategies can prevent or respond to harmful post-employment conduct. For employees, proper legal guidance helps ensure you negotiate severance packages effectively and comply with ongoing contractual duties.

Whether you need help drafting employment contracts, navigating dismissal, or understanding your post-employment obligations, speaking with a qualified employment lawyer Toronto is the smartest first step.

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