Subscribe to our newsletters
Just Cause and With Cause Termination in Ontario
If your employer tells you that your termination is for cause, the stakes are high. A for-cause termination in Ontario means no notice, no termination pay, and no severance. It also affects your Record of Employment and can complicate an EI claim. But being told your termination is for cause is not the same as it legally being for cause. Ontario courts apply a high threshold, and many for-cause terminations do not hold up when challenged.
The bar is very high. Courts treat termination for cause as the capital punishment of employment law. Minor issues, poor performance without warnings, and conduct unconnected to the employee's core duties rarely meet the threshold. Many employers misuse the label to avoid paying what they owe.
Were you told your termination is for cause?
Do not accept that characterization without getting legal advice. Many for-cause terminations in Ontario are successfully challenged. You may be entitled to severance, termination pay, and potentially wrongful dismissal damages. Get advice before you sign anything.
Call: 1-800-771-7882 Speak With an Employment LawyerJust cause vs. with cause: what is the difference?
Although these terms are sometimes used interchangeably, they have distinct meanings in Ontario employment law. Both allow an employer to terminate without notice or severance, but they apply in different contexts.
| Concept | Just cause | With cause |
|---|---|---|
| What it covers | Serious single incidents of misconduct that fundamentally break the employment relationship | Broader pattern of conduct including chronic performance issues or repeated policy violations after warnings |
| Common examples | Theft, fraud, serious insubordination, workplace violence, harassment | Chronic absenteeism, persistent poor performance after documented warnings, serious dishonesty |
| ESA requirement | Wilful misconduct, disobedience, or wilful neglect of duty under Ontario Regulation 288/01 | Must still meet a high legal threshold — courts do not accept vague or unsupported claims |
| Effect on EI | May affect EI eligibility — noted on Record of Employment | Also noted on ROE and may affect EI eligibility |
| Severance owed | None if legally justified | None if legally justified — but full common law notice if it is not |
What counts as just cause in Ontario
Ontario courts assess just cause on the specific facts of each case. Conduct that has been found to constitute just cause in Ontario typically falls into the following categories.
Theft or fraud
Stealing from the employer, customers, or coworkers, or committing financial fraud, is among the most clear-cut grounds for just cause termination.
Serious dishonesty
Falsifying records, credentials, or expense claims in a way that fundamentally undermines trust may constitute just cause, depending on the circumstances.
Harassment or workplace violence
Serious harassment or physical violence in the workplace may justify immediate termination, though employers must still investigate properly before acting.
Gross insubordination
A single serious act of deliberate defiance that fundamentally undermines the employer's authority may constitute just cause, but isolated minor refusals rarely meet this standard.
Was your conduct actually wilful misconduct under Ontario law?
Many employers claim just cause for terminations that, on close examination, do not involve deliberate misconduct meeting the legal threshold. If there is any doubt about whether the label is accurate, get it reviewed before making any decisions.
Get Your Termination Reviewed Or call us: 1-800-771-7882Signs the for-cause label may not hold up
Courts frequently overturn for-cause terminations. The following circumstances suggest the characterization may be legally vulnerable.
What you may be entitled to if the just cause label is wrong
If a court finds that the conduct did not justify termination for cause, the employer loses the ability to avoid notice and severance. You may be entitled to ESA termination pay, statutory severance pay where eligible, and common law reasonable notice, which can be significantly higher than the ESA minimum depending on your age, length of service, and seniority. In some cases, additional damages may be available where the employer acted in bad faith in the manner of the dismissal.
The common law notice entitlement is calculated based on the Bardal factors including your age, length of service, the character of your employment, and the availability of comparable work. For long-serving or senior employees, this can represent many months of compensation. For a full breakdown of how severance is calculated, see our guide to severance pay in Ontario.
What to do if you were terminated for cause in Ontario
Do not sign anything immediately
Do not sign a termination agreement, release, or any other document at the termination meeting or shortly after. Take time to review with a lawyer. Once you sign a release, your options are almost entirely eliminated.
Gather your documents
Collect your employment contract, any performance reviews, written warnings, and the termination letter. These documents are critical for a lawyer to assess whether the for-cause characterization is legally defensible.
Get legal advice promptly
Limitation periods apply to wrongful dismissal claims in Ontario. Acting early gives you more options and protects your ability to pursue the full compensation you may be owed.
Check your Record of Employment
A for-cause termination is noted on your ROE with a specific code that affects EI eligibility. If the for-cause characterization is successfully challenged, your ROE may need to be corrected. A lawyer can advise you on this process.
Frequently asked questions about just cause termination in Ontario
What is just cause termination in Ontario?
Just cause termination allows an employer to end employment immediately without notice, termination pay, or severance. It requires serious misconduct that fundamentally damages the employment relationship. The Employment Standards Act, 2000 permits termination without notice only for wilful misconduct, disobedience, or wilful neglect of duty. The threshold is high and is regularly tested in Ontario courts.
Can I get severance if I was fired for cause?
Not if the just cause designation is legally valid. However, many for-cause terminations are successfully challenged. If a court or adjudicator finds that the conduct did not meet the legal threshold, the employer is required to pay full termination entitlements including ESA notice, statutory severance where applicable, and common law reasonable notice. The fact that your employer claims just cause does not make it so.
Does my employer need to give warnings before terminating for cause?
In most cases, yes. Unless the conduct is so serious that it justifies immediate dismissal on its own, such as theft, fraud, or serious violence, courts generally expect employers to have given warnings and applied progressive discipline before terminating for cause. Skipping that process significantly weakens the employer's position if the termination is challenged.
What is the difference between just cause and wrongful dismissal?
Just cause termination is a lawful dismissal where serious misconduct justifies ending employment without notice or severance. Wrongful dismissal occurs when an employer terminates an employee without proper notice or severance and without legal justification for doing so. A termination labelled as for cause that does not meet the legal threshold may be found to be a wrongful dismissal, entitling the employee to compensation.
Can I collect EI if I was fired for cause in Ontario?
Generally, no. A termination for cause is recorded on your Record of Employment with a code that makes you ineligible for regular EI benefits. However, if the for-cause characterization is successfully challenged and your ROE is corrected to reflect a without-cause termination, EI eligibility is restored. If you believe the cause designation is inaccurate, get legal advice before filing or abandoning an EI claim.
How do I know if my termination for cause was legally justified?
The key questions are whether the conduct was deliberate and serious, whether warnings were given, whether progressive discipline was applied, and whether your length of service and prior record were taken into account. If you are uncertain, the most reliable way to assess the situation is to have an employment lawyer review your termination letter and employment history. Many for-cause terminations do not withstand that scrutiny.
Fired for cause in Ontario? Get your situation reviewed.
If your employer has characterized your termination as being for just cause or with cause, do not assume that label is accurate or final. Our team can assess whether the conduct met the legal threshold, advise you on what compensation you may be owed, and help you pursue the right claim. Contact us for a confidential consultation before signing anything.
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. ©