Just Cause Termination Explained
In Ontario, a just cause termination, also known as termination without notice, occurs when an employer ends the employment relationship without providing the employee with notice or termination pay . This type of termination is reserved for the most serious cases of employee misconduct or neglect.
What Constitutes Just Cause Termination?
Just cause termination can encompass various forms of employee behaviour, including but not limited to:
Legal Framework for Just Cause Termination
According to the Ontario Employment Standards Act (ESA), employers are not required to provide notice of termination or termination pay in specific situations. Ontario Regulation 288/01, Section 2(1) outlines these circumstances, stating:
Termination and Severance of Employment (O. Reg. 288/01)
Section 2(1): An employer is not required to provide an employee with notice of termination or termination pay if the employee:
This regulation underscores the importance of the employer having substantial evidence to justify the just cause termination. It is crucial for both employers and employees to understand their rights and obligations under the ESA.
The courts have found that, in certain circumstances, employers have the right to dismiss an employee for just cause, or for ‘good reason’.
The legal test to determine if an employee has been terminated for just cause is found in the case of Regina v. Arthurs (1967), 62 D.L.R. (2d) 342 (Ont. C.A.) :
If an employee has been guilty of serious misconduct, habitual neglect of duty, incompetence, or conduct incompatible with his duties, or prejudicial to the employer’s business, or if he has been guilty of willful?disobedience to the employer’s orders in a matter of substance, the law recognizes the employer’s right summarily to dismiss the delinquent employee.
Employer Considerations for Just Cause Termination
Employers should be cautious when considering a just cause termination. It is essential to conduct a thorough investigation and document all instances of misconduct or neglect. Employers should also provide employees with warnings and an opportunity to improve their behaviour, where appropriate.
Employee Rights in Just Cause Termination
Employees terminated for just cause may feel that their termination was unjust or that their employer did not have sufficient grounds. If you believe you have been wrongfully terminated, it is crucial to seek legal advice. An employment lawyer can help determine if your rights have been violated and what steps you can take.
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The Key Elements of Termination With Cause
In the realm of termination with cause, where an employee is faced with allegations of wrongdoing by their employer, several critical elements come into play. Ontario’s employment law framework ensures that both employers and employees operate within a fair and equitable system.
The “Duty of Fair Dealing”: This fundamental principle underscores that employers must act in good faith when dealing with their employees. It means they cannot falsely accuse employees of misconduct when none has occurred. This Duty of Fair Dealing forms the foundation of termination with cause proceedings, ensuring that employees are treated fairly and ethically.
A “Contextual Approach”: Ontario courts take a contextual approach to assess whether alleged misconduct justifies termination with cause. This involves a thorough examination of the specific work activities and environment in which the alleged misconduct occurred. Only then can they determine if it warrants the employee’s termination.
The Importance of Warnings: To uphold the principles of fairness and provide employees with an opportunity to rectify their actions, employers are required to follow a progressive discipline approach. This approach involves issuing warning letters to employees when allegations of misconduct arise. Without these warnings, employees may not be aware of their performance shortcomings and may not have the chance to improve.
Proper Documentation: Accurate and thorough documentation of warnings, whether they are verbal or written, is a crucial aspect of termination with cause proceedings. This documentation plays a pivotal role in ensuring that employers are not considered to have “condoned” an employee’s performance, which could prevent them from terminating an employee for just cause.
Opportunity for Improvement: The legal system in Ontario emphasizes that employees should be provided with an opportunity to enhance their performance before being terminated for just cause. This underscores the importance of proper documentation, progressive discipline, and, where necessary, the implementation of Performance Improvement Plans . These measures align with the principles of fairness and legal requirements in Ontario’s employment law, safeguarding the rights of both employers and employees.
Conclusion
Understanding the intricacies of just cause termination is vital for both employers and employees. For employers, it ensures that terminations are conducted lawfully and fairly. For employees, it helps in recognizing their rights and seeking appropriate recourse if those rights are infringed upon.
Contact Achkar Law
If you are an employee and have questions about ‘just cause’ terminations or have been terminated and your employer is claiming that they have just cause to terminate you, contact us today. We can help with examining the events that led up to your termination. Reviewing and understanding the events that led to your termination can help in better determining if you are entitled to a termination package.