Can You Go to Jail for Stealing Time at Work
Recognized By
Best Law Firms in Canada 2025 Service Provider Award HRD Canada Canada HR Awards 2025 Excellence Awardee
26May

Can You Go to Jail for Stealing Time at Work?

Accused of Time Theft at Work in Ontario? What You Need to Know Before Accepting Any Outcome

Being accused of time theft at work is a serious situation that can move quickly from a workplace misconduct allegation to termination for cause. Many employees in Ontario accept outcomes they did not have to accept because they did not understand their rights when the accusation was made. Whether the allegation is an exaggeration of minor conduct, a misunderstanding, or completely unfounded, knowing what the law requires of your employer and what it protects for you matters significantly to the outcome.

The most important thing to know
Time theft is almost always an employment law matter, not a criminal one. The threshold for just cause termination is high, and many time theft dismissals do not meet it.

An employer claiming just cause for time theft must prove the conduct occurred, was sufficiently serious to justify termination without notice, and that the response was proportionate. Where the alleged conduct was minor, ambiguous, or where the employer failed to follow a fair process, a just cause termination may be wrongful dismissal entitling you to notice and severance.

Were you terminated for alleged time theft in Ontario and offered no severance?

A for-cause termination based on time theft is not automatically valid. If the conduct was minor, the process was unfair, or the allegation was exaggerated or false, you may have a wrongful dismissal claim. Get advice before accepting any outcome or signing a release.

Call: 1-800-771-7882 Speak With an Employment Lawyer

How time theft is treated under Ontario law

The typical outcome: employment law

  • Addressed as employee misconduct under employment law
  • May result in discipline ranging from a warning to termination
  • Employer must follow a fair investigation and proportionate response
  • Just cause for termination requires proof of serious, deliberate conduct
  • Minor or ambiguous conduct rarely justifies termination without notice

The rare exception: criminal law

  • Criminal charges require deliberate fraud with significant financial impact
  • Fraud over $5,000 carries a maximum of 14 years imprisonment under the Criminal Code of Canada
  • Fraud under $5,000 carries a maximum of 2 years
  • Criminal charges for time theft are uncommon and require far more than minor misconduct
  • Most time theft situations never come close to the criminal threshold
For criminal charges to apply, the conduct must involve deliberate fraudulent manipulation such as falsifying timesheets or systematically clocking in for shifts not worked causing significant financial loss. Arriving late, taking long breaks, or doing personal tasks during work hours does not meet this threshold and will almost always be addressed as an employment matter only.

When a time theft termination may be wrongful dismissal

Termination for cause based on time theft requires an employer to prove the misconduct on the evidence, establish that it was serious enough to justify termination without notice, and demonstrate that the response was proportionate to the circumstances. Ontario courts apply a contextual analysis: isolated incidents, minor conduct, ambiguous evidence, or a disproportionate response can all mean a for-cause termination fails to meet the legal threshold.

The alleged time theft involved minor conduct such as occasional late arrivals or extended breaks rather than deliberate systematic fraud
Your employer never communicated a clear policy about the conduct they are now treating as grounds for termination
No prior warnings, discipline, or performance conversations preceded the termination decision
The investigation was conducted without giving you a genuine opportunity to respond to the specific allegations before a decision was made
The allegation appears connected to another workplace event such as a complaint you filed, a leave you took, or a dispute you raised
You were offered a nominal severance amount despite the for-cause characterization, suggesting your employer is unsure the cause will hold up

Your rights when accused of time theft

Right to a fair investigation

Your employer must conduct a fair and thorough investigation before making a termination decision. This means reviewing the relevant evidence, presenting the specific allegations to you, and giving you a genuine opportunity to respond before any decision is made. A termination reached without this process is significantly more vulnerable to a wrongful dismissal challenge.

Right to know the specific allegation

You are entitled to know what specific conduct your employer is alleging. Vague or shifting allegations that you cannot meaningfully respond to do not support a valid just cause finding. If the allegation was never clearly put to you before the decision was made, this weakens the employer's position.

Right to a proportionate response

Even where some misconduct occurred, the response must be proportionate to the conduct. Minor or isolated incidents of time theft without prior warnings or discipline generally do not justify immediate termination for cause. Courts expect progressive discipline for less serious conduct unless the misconduct was egregious.

Right not to sign anything without advice

Where a termination for cause is communicated, you will typically be asked to sign a release or exit documentation. You are not required to sign anything immediately. If you sign a release waiving your claims without getting legal advice, you may give up a valid wrongful dismissal claim. Take the time to have your situation assessed first.

Were you terminated for alleged time theft without severance?

A just cause termination based on time theft requires meeting a high evidentiary and proportionality threshold. If the allegation was minor, the process was unfair, or the response was disproportionate, you may have a wrongful dismissal claim. Get advice before signing anything.

Find Out If You Have a Claim Or call us: 1-800-771-7882

What to do if you are accused of time theft in Ontario

1

Stay calm and do not make admissions under pressure

Workplace investigation meetings can be stressful. Be professional and cooperative but be careful about what you admit to without having the full picture of the allegation. Statements made quickly under pressure in an investigation meeting can be used against you. You are entitled to understand the specific allegation before responding to it.

2

Gather and preserve your own evidence

Collect any records that demonstrate your actual hours worked including emails, calendar entries, project records, sign-in logs, communications with colleagues, and anything else that supports your account. Preserve this evidence before you lose access to employer systems following a termination.

3

Understand the specific allegation

Ask for the specific conduct being alleged in writing if it has not been clearly communicated. You are entitled to know what you are being accused of before any disciplinary decision is made. If the allegation is vague, ask for clarification and document your request.

4

Do not sign any release without legal advice

If your employer terminates you for cause and presents exit paperwork, do not sign anything until you have had the situation reviewed by a lawyer. A release waives your right to pursue a wrongful dismissal claim. Take the time you need to get proper advice before making that decision.

5

Get legal advice promptly

Whether you are still employed and under investigation, or you have already been terminated, get legal advice as soon as possible. The two-year limitation period for wrongful dismissal claims applies in Ontario. Earlier advice gives you more options and a stronger position.

Frequently asked questions about time theft accusations in Ontario

Can you go to jail for time theft in Ontario?

In the vast majority of cases, no. Time theft is addressed as employee misconduct under employment law, not as a criminal matter. Criminal charges under the Criminal Code of Canada would only apply where the conduct involved deliberate fraudulent manipulation causing significant financial loss typically exceeding $5,000. Minor conduct such as arriving late, taking extended breaks, or doing personal tasks during work time does not meet this threshold.

Can my employer fire me for cause for time theft in Ontario?

Potentially, but the threshold is high. Just cause for time theft requires proof that the misconduct occurred, that it was sufficiently serious to justify termination without notice, and that the response was proportionate. Minor or isolated conduct, a lack of prior warnings, or a flawed investigation process can all undermine a for-cause termination. Many time theft dismissals do not meet the just cause standard and constitute wrongful dismissal.

What if the time theft allegation is false or exaggerated?

Where the allegation is false or significantly exaggerated and you can demonstrate this through your own records and evidence, you may have a wrongful dismissal claim and potentially a claim for damages arising from the manner of the dismissal. Gather your evidence, do not sign any release, and get legal advice promptly. False allegations of serious misconduct can also potentially give rise to a defamation claim depending on the circumstances.

Do I have to sign a release when terminated for time theft?

No. You are not legally required to sign a release. A release waives your right to pursue legal claims including wrongful dismissal. Your employer cannot withhold your ESA minimum entitlements as a condition of you signing a release those are owed regardless. You should never sign a release without first having your situation reviewed by a lawyer to ensure you understand what you are giving up.

What process must my employer follow before terminating me for time theft?

Your employer must conduct a fair investigation, present the specific allegations to you, and give you a genuine opportunity to respond before making a termination decision. A termination reached without this process is significantly more vulnerable to challenge. They must also ensure the response is proportionate to the conduct minor misconduct without prior warnings generally does not justify immediate termination for cause.

Can I claim wrongful dismissal if I was terminated for time theft but the conduct was minor?

Yes, potentially. Where the conduct alleged was minor, isolated, or ambiguous, where no prior warnings were given, or where the investigation process was flawed, a for-cause termination based on time theft may not meet the legal just cause threshold. In that case the termination may be wrongful dismissal entitling you to common law reasonable notice or pay in lieu. Get legal advice to assess whether the just cause allegation holds up in your specific circumstances.

Were you terminated for alleged time theft in Ontario?

A for-cause termination based on time theft requires meeting a high legal threshold. If the conduct was minor, the process was unfair, or the response was disproportionate, you may have a wrongful dismissal claim. Our team advises employees across Ontario on wrongful dismissal claims and just cause disputes. Contact us for a confidential consultation.

Call us at 1-800-771-7882 or fill out the form below and we will be in touch.

The article in this client update provides general information and should not be relied on as legal advice or opinion. This publication is copyrighted by Achkar Law Professional Corporation and may not be photocopied or reproduced in any form, in whole or in part, without the express permission of Achkar Law Professional Corporation. ©

Share This!