When Employment Relationships Go Wrong: Post-Termination Misconduct by Employees in Ontario

Written by: Sezar Bune, J.D. | Toronto Employment Lawyer

Updated: February 15, 2026

Summary:

Post-termination misconduct by employees in Ontario can create serious risks for businesses and reputations. As a result, the courts provide remedies for workplace harassment, defamation, misuse of confidential information, and other employee wrongdoing, even after leaving a job. This guide explains recent court decisions, outlines key legal obligations for employers and employees, and provides actionable steps to protect your rights, including guidance on when to seek legal advice in Ontario.

Introduction: Why Post-Termination Misconduct by Employees Matters

Most employment relationships end quietly. Occasionally, however, a former employee crosses legal boundaries, creating risks for businesses and colleagues. Ontario courts have clear remedies for harassment, misuse of confidential information, and reputational attacks after employment ends.

As an example, an Ontario case called Bougiotis v. Manji, 2025 ONSC 2365 demonstrates how serious post-termination employee misconduct can be, and highlights critical steps both employers and employees should take to protect their legal and financial interests.

Case Study: A Senior Employee’s Departure Spirals Into Misconduct

The case involved a senior leader at CleanMark Group, who managed major clients and sensitive corporate information for 2.5 years. Upon termination without cause, he received an enhanced severance package and signed a full and final release.

Despite this, the employee engaged in escalating misconduct:

Key Examples Post-Termination Misconduct by Employees 

In this case, the former employee engaged in 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 messages to a former manager

• Threatening staff with legal action

• Contacting major clients under aliases

• Retaining and threatening to disclose confidential business information

• Posting hundreds of negative, defamatory online reviews

• Attempting to extort the company for financial gain

The employer’s informal attempts to stop the behaviour, including a cease-and-desist letter, failed. Investigations revealed the employee had downloaded the company’s entire work drive (containing data representing 60% of annual revenue) before termination.

Employer Turns to the Court: Remedies and Outcomes

Faced with ongoing harassment, reputational harm, and risk of client loss, the employer sought the court’s protection. Because the former employee failed to respond, the court deemed the allegations true. Remedies requested included:

What Legal Remedies did the Employer Seek?

The employer and the manager sought powerful remedies, including:

• Interlocutory injunction – stops harassment and use of confidential information while the lawsuit proceeds

• Anton Piller order – a rare civil search warrant allowing seizure of evidence at risk of destruction

• Return and deletion of confidential information

• Financial costs – holding the former employee accountable

What Did the Court Find?

The court made important findings that led to it granting very broad relief in the employer’s favour, awarding over $34,000 in costs and issuing broad injunctions, including:

• 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.

In the court’s view, these findings justified the rare and extraordinary Anton Piller order.

Key takeaway for employers and employees: Ontario courts act decisively to protect businesses from post-employment misconduct, highlighting the need for strong contracts and prompt legal action.

Lessons for Employers: Protecting Your Business

The most powerful legal remedies in the event of post-termination misconduct by employees often require fast action. For example, I represented an employer who was upset that an employee had “jumped ship” by joining a competing business that had newly opened across the street. After learning of the employee’s efforts, we wrote a cease-and-desist letter emphasizing our client’s interest in preserving business relationships and reminding the employee of contractual obligations not to solicit customers or use confidential information. Prompt legal action like this can prevent small breaches from escalating into major business risks.

Employers can reduce post-termination risk with these strategies, ideally with guidance from an employment lawyer in Toronto:

1. Draft Strong Employment Contracts

• Clearly define confidential information

• Include enforceable post-employment obligations

• Review and update regularly

• Consult an employment contract review lawyer to maintain enforceable agreements

2. Document Everything

Maintain records of emails, messages, complaints, online reviews, and any communications related to misconduct.

3. Act Quickly

• Early consultation with an experienced employment lawyer in Ontario is critical

• Prompt legal action preserves the ability to seek injunctions or Anton Piller orders

• Address issues immediately if confidential information is copied, clients are contacted, or defamatory statements occur

Lessons for Employees: Know Your Rights and Limits

Employees also have important takeaways from this decision. Consulting a lawyer early in the termination process can help prevent missteps. For instance, I once dealt with a case where an employee I was representing was terminated from her employment. After starting severance package negotiations, the employer alleged she had violated her non-solicitation agreements by contacting former clients to “solicit” them after starting her own competing business. However, the evidence showed she carefully avoided any impression that she was interfering with her former employer’s business. This illustrates the importance of understanding both your contractual obligations and your rights after leaving a job.

1. Severance Agreements Are Binding

• Review and negotiate with a severance package lawyer

• Ensure severance is fair and protects your future rights

• Avoid actions that could void the release or create legal consequences

2. Confidentiality Obligations Continue

• Misuse of company information can result in injunctions, damages, or Anton Piller orders

• Applies especially to senior employees with access to sensitive information

3. Avoid Workplace Harassment and Defamation

• Calls, texts, or online attacks can trigger legal penalties

• Can damage future employment opportunities

• Consult a wrongful dismissal lawyer in Toronto instead of retaliating

Final Thoughts: Protecting Workplace Relationships after Termination

This Ontario case shows the importance of understanding rights and obligations after employment ends. Employers benefit from proactive legal strategies, while employees must carefully review severance and post-employment obligations.

Next steps: Draft contracts, negotiate severance packages, or manage disputes with the guidance of a qualified Toronto employment lawyer to prevent harm and protect legal rights.

If you are unsure how these rules apply to your situation, it’s wise to consult a lawyer experienced in Ontario employment law.

FAQ:

1. What constitutes post-termination misconduct in Ontario?

Post-termination misconduct includes harassment, defamation, contacting clients without authorization, and misuse of confidential information belonging to an employer. Courts provide remedies including injunctions and Anton Piller orders.

2. Can a former employee be held liable after signing a severance package?

Yes. Signing a severance package does not absolve an employee from ongoing legal obligations like confidentiality, and courts can enforce legal remedies for violations.

3. When should an employer contact an employment lawyer in Toronto after a Termination?

An employee should immediately consult with a qualified Ontario employment lawyer if there is an employment dispute, such as if the employee receives a “cease-and-desist letter” from a former employer alleging violation of restrictive covenants under an employment contract, such as breach of confidential information, non-compete agreements or non-solicitation agreements.

4.  What legal remedies exist for post-termination misconduct?

If the employer can provide sufficient evidence to prove their claims, the courts may grant:

• Interlocutory injunctions

• Anton Piller orders

• Return or deletion of confidential information

• Financial costs and damages (such as for violation of non-compete agreements)

For more frequently asked questions about Ontario employment law, please visit our guide here.

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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