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Employment Lawyer Toronto - Wrongful Dismissal & Workplace Rights

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What is a Termination for Just Cause in Ontario?

February 1, 2022 By Articles

In Ontario, your employment may be terminated with or without just cause.

In this blog article, we discuss a few general points to help educate readers on the basics of how (and under what circumstances) an employee’s job can be terminated (i.e., brought to an end) by an employer. Specifically, the focus is on an employment termination for just cause.

What is Termination for Just Cause in Ontario Employment Law?

Determining whether an employee’s misconduct amounts to just cause for dismissal involves a contextual analysis with a focus on proportionality. The basic question is whether an employee has engaged in misconduct that is incompatible with the fundamental terms of the employment relationship. The rationale for the standard is that the sanction imposed for misconduct is to be proportional – termination for just cause is only justified if the employee’s misconduct is extremely serious and it undermines the employment relationship. This is always based on the specific facts of the case determined by a contextual examination of the nature and circumstances of the misconduct.

What is an Example of Termination for Just Cause?

Some common examples where an employer may try and terminate your employment for just cause include:

  • You were insubordinate or failed to follow the directions or policies of your employer, manager or supervisor
  • Workplace violation / workplace harassment
  • You were incompetent or incapable of performing your job duties
  • You committed theft or other acts of dishonesty while employed
  • A combination of various reasons

Consequences of a Termination for Just Cause

A just cause for dismissal has serious consequences for employees. Basically, if it is determined that your employer had just cause to terminate your employment, your employer can terminate your employment immediately without providing you with any reasonable notice or any termination pay / severance pay. Also, in some rare cases, if the employer can prove you engaged in behaviour that demonstrates “guilty of wilful misconduct, disobedience or wilful neglect of duty that is not trivial and has not been condoned by the employer,” it may not even have to give you you the minimum notice required under the Employment Standards Act, 2000.

However, the consequences for an employer who is unable to prove just cause (i.e., loses a wrongful dismissal claim by an employee), the consequences are also severe. Among other things, an employer may be required to provide the employee with a severance package, as well as additional compensation for bad faith or punitive damages.

Is it Hard to Prove Termination of Employment for Just Cause?

Yes – and rightly so! The legal requirements set by the Ontario Employment Standards Act, 2000 and case law make it very difficult for an employer to prove termination of employment for just cause. Generally speaking, the courts have set the standard very high for employers to terminate employees for just cause (i.e., no prior notice of their last day of work and no termination pay / severance pay).

Basically, because of the importance of employment to an individual’s ability to earn a livelihood and their status in society, employers are required to prove that that an employee’s misconduct is so serious that it has destroyed the employment relationship. This is no small feat, and for this reason, most employers are often unable to succeed in defending a wrongful dismissal claim by an employee. Why?

Test for Proving Just Cause for Dismissal

When a court is asked to resolve a wrongful dismissal claim, the employer will be required to demonstrate if it had just cause for dismissal. In making that decision, the court will look at all of the circumstances involved before deciding whether just cause exists for termination.

The basic question for proving an employer has just cause for termination for cause is whether, in the circumstances, the behaviour of the employee was so egregious that the employment relationship could no longer viably exist. This test was set out by the Supreme Court of Canada in McKinley v. BC Tel. [2001] 2 SCR 161:

  • determining the nature and extent of the misconduct;
  • considering the surrounding circumstances; and
  • deciding whether dismissal is warranted (i.e., whether dismissal is a proportional response).

Why Do Employers Say they Have Termination for Just Cause?

In most cases, to save money by trying to avoid (or reduce) how much severance pay they have to provide the employee in a termination severance package! Depend on the nature of your employment (e.g., your age, years of service, level of compensation, etc.), a termination for just cause can save your employer thousands of dollars in severance pay, amounts which you otherwise are entitled to receive if there is no just cause for termination. It is for this reason why some employers will allege just cause in an effort to intimidate you into settling for fewer severance monies or to avoid paying you at all.

At Bune Law, Toronto employment law firm, our employment lawyer has successfully assisted many employees who were wrongfully dismissed and, after negotiations or wrongful dismissal claim, were able to obtain the financial severance package they deserved. Because of our Toronto employment lawyer’s experience, we know that having your employment terminated for just cause can be stressful, intimidating, and a humiliating experience, especially since you may be left without income and potential damage to your career reputation.

If your employer has terminated your employment for just cause, we are here to listen to your side of the story and help you navigate your options moving forward.

Does an Employer Have to Provide You with a Reason for Termination?

An obvious question many employees have is whether an employer has to provide a reason for terminating an employment. The simple answer is “no.” In fact, an employer can terminate employment at any time without cause, which means for any reason (or even no reason at all), as long as the reasons are not discriminatory or retaliatory. Otherwise, an employer can terminate employment for any reason and without the need to explain anything to their employers, even if it seems completely arbitrary and unfair.

One key exception? If an employer terminates employment for cause, it must provide the specific reason it will rely on when defending a wrongful dismissal claim brought by an employee who fights the termination for cause.

Wrongful Termination Lawyer Consultation

If you believe you were wrongfully dismissed, it is important to quickly get legal advice during a consultation with an employment lawyer in Toronto. At Bune Law, our experienced wrongful termination lawyer may help you understand legal rights as an employee better, and determine whether the reasons for your termination were lawful, and what options you have to obtain a severance package and pursue a wrongful dismissal claim.

Contact Bune Law, Toronto Employment Lawyer

If you have been a victim of wrongful termination of employment in Ontario, then you should talk to an experienced employment lawyer in Toronto, who will help you determine whether your employment has been ended lawfully. To discuss your wrongful termination and see if you have a case to obtain a termination severance package, please call Bune Law, Toronto employment lawyer, today at 647-822-5492.

Disclaimer: The content on this website and blog is not legal advice or legal opinion of any kind, and is only general information. It is in no way particular to your individual case and should not be relied upon in any way. The outcome of a legal matter depends on its unique circumstances, and prior successes are not indicative of future results. No portion or use of this website or blog will establish a lawyer-client relationship with the author, this law firm or any related party. Should you require legal advice for your particular situation, please fill out the form below, or call 647-822-5492, to request an initial consultation.

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Filed Under: Toronto Employment Lawyer Tagged With: employment lawyer toronto, Severance Package, termination package, wrongful dismissal

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“Bune Law, Toronto Employment Lawyer, is your source of expert employment legal advice and representation for employees and employers on all work-related issues. We assist clients all across Ontario on termination of employment, severance packages, wrongful dismissal, human rights, employment contracts, constructive dismissals, and more. Bune Law serves clients in various cities across Ontario, including Toronto, North York, Thornhill, Vaughan, Woodbridge, Richmond Hill, Mississauga, Brampton, Pickering, Hamilton, Ajax, Oshawa, Whitby, Uxbridge, Aurora, Markham, Newmarket, etc.”

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