Terminating Disgruntled Employees
In every workplace, one disgruntled employee can disrupt productivity, morale, and team cohesion. Whether their behaviour becomes toxic over time or they challenge management decisions with hostility, employers in Ontario must take action carefully and legally.
Terminating a toxic or disgruntled employee involves more than just performance concerns. It often raises human rights issues, risks of retaliation, and potential wrongful dismissal claims. This article explains how to identify toxic behaviour, mitigate risk, and approach termination lawfully and effectively.
What Is a Disgruntled Employee?
A disgruntled employee is one who expresses persistent dissatisfaction, resentment, or hostility toward management, co-workers, or organizational policies. Their discontent may manifest as:
- Undermining leadership or spreading negativity
- Refusing to comply with reasonable instructions
- Disrupting team morale or workplace culture
- Falsely accusing colleagues or managers of misconduct
When left unaddressed, a disgruntled employee can escalate into a toxic presence, creating risk for the business and legal liability if not handled properly.
When Termination Becomes Necessary
While most issues can be addressed through performance management or conflict resolution, there are times when the best decision for the organization is to terminate the employment relationship.
Situations that may justify termination include:
- Ongoing insubordination or refusal to comply with workplace policies
- Harassment, discrimination, or bullying of co-workers
- Creating a poisoned work environment
- Spreading confidential information or making false claims
What Is a Disgruntled Employee?
A disgruntled employee is one who expresses persistent dissatisfaction, resentment, or hostility toward management, co-workers, or organizational policies. Their discontent may manifest as:
- Undermining leadership or spreading negativity
- Refusing to comply with reasonable instructions
- Disrupting team morale or workplace culture
- Falsely accusing colleagues or managers of misconduct
- When left unaddressed, a disgruntled employee can escalate into a toxic presence, creating risk for the business and legal liability if not handled properly.
When Termination Becomes Necessary
While most issues can be addressed through performance management or conflict resolution, there are times when the best decision for the organization is to terminate the employment relationship.
Situations that may justify termination include:
- Ongoing insubordination or refusal to comply with workplace policies
- Harassment, discrimination, or bullying of co-workers
- Creating a poisoned work environment
- Spreading confidential information or making false claims
As Christopher Achkar, employment lawyer and founder of Achkar Law, explains:
“Terminating a disgruntled employee requires careful legal planning to minimize risk and protect your business. Before taking action, consult a lawyer to ensure the process is compliant and defensible.”
Legal Risks of Terminating a Disgruntled Employee
Even when termination is justified, a disgruntled employee may claim their dismissal was discriminatory, retaliatory, or otherwise unlawful.
Common risks include:
- Human rights complaints: Alleging termination due to disability, age, or other protected grounds
- Wrongful dismissal claims: Challenging the notice or severance offered
- Constructive dismissal: Arguing that working conditions were made intolerable
- Reputational damage: Spreading misinformation online or through external complaints
Risk-Mitigation Strategies for Employers
To reduce the legal and reputational risks of terminating a toxic or disgruntled employee, consider the following steps:
1. Document Performance and Behaviour
Keep a clear, detailed record of incidents, meetings, warnings, and disciplinary actions. Ensure you’re documenting objective facts, not opinions.
2. Apply Policies Consistently
Show that the employee’s behaviour violates clearly established policies, and that similar behaviour has been addressed similarly in the past.
3. Communicate Clearly
Where appropriate, allow the employee to improve and understand the consequences. Poor communication often fuels later complaints.
4. Offer a Fair Exit Package
Ensure the termination package meets or exceeds legal obligations under the ESA or common law, depending on the case.
5. Seek Legal Advice Early
An employment lawyer can help you manage complex terminations and draft settlement documents that reduce post-termination risks.
The Bardal Factors: Why They Still Matter
Ontario courts rely on the Bardal factors to assess the appropriate amount of notice or severance.
These include:
- Length of service
- Age of the employee
- Position held and responsibilities
- Availability of similar employment
- Special circumstances (e.g., health or market conditions)
- Even with cause or misconduct, these factors must be considered unless you can prove just cause, something the courts view as a high bar.
Termination Clauses and Employment Contracts
If you have a well-drafted employment contract with a valid termination clause, it may limit your severance obligations. However, poorly drafted or outdated contracts are often unenforceable. Review your contracts regularly with legal counsel to ensure they hold up.
How an Employment Lawyer Can Help
At any point during this process, legal guidance can help you:
- Assess risk based on the employee’s behaviour and circumstances
- Draft a compliant termination letter or exit agreement
- Avoid triggering legal claims through missteps in process or language
- Respond to human rights complaints or wrongful dismissal claims
- Defend your organization if litigation arises
Final Thoughts
Letting go of a toxic or disgruntled employee may be necessary to restore workplace morale and reduce risk to your business. But the way the termination is handled can be the difference between a smooth transition and a costly legal dispute.
Being proactive, following your legal obligations, and working with an employment lawyer can help ensure that difficult decisions are made with confidence and without regret.
Contact Achkar Law
If you are an Ontario employer considering terminating a disgruntled or toxic employee, the team at Achkar Law can help you assess your options and manage the risks.
Call toll-free: 1-800-771-7882 | Email: [email protected]
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. ©
Workplace Law Topics: Employment Law, Employee Terminations and Layoffs, Employment Agreements, Employment and Labour Compliance, Workplace Investigations, Responding to Ministry of Labour Complaints