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How To Handle Or Terminate A Disgruntled Employee
A disgruntled employee can create serious challenges in the workplace. While occasional dissatisfaction is normal, ongoing hostility, insubordination, or disruptive behaviour can harm productivity, morale, and workplace culture. For employers in Ontario, managing or terminating a disgruntled employee requires balancing workplace management with legal compliance. Improperly handling a termination can expose your organization to wrongful dismissal claims, human rights complaints, or retaliation allegations.
Considering terminating a difficult or disruptive employee?
The way a termination is handled matters as much as the decision itself. Get legal advice before taking action to ensure your organization is protected.
Call: 1-800-771-7882 Speak With an Employer LawyerWhat is a disgruntled employee?
A disgruntled employee is a worker who expresses persistent dissatisfaction, resentment, or hostility toward their employer, coworkers, or workplace policies. While dissatisfaction alone does not justify termination, ongoing negative behaviour may escalate into workplace disruption or misconduct. If left unaddressed, it can create a toxic work environment and increase the risk of conflict and legal disputes.
Why terminating a disgruntled employee carries legal risk
Terminating an unhappy employee may seem straightforward, but doing so without proper process can expose your organization to serious legal claims. Termination decisions must be well-documented, consistently applied, and legally defensible.
Wrongful dismissal claims
If an employee is terminated without proper notice or severance, they may bring a wrongful dismissal claim seeking compensation under common law or the Employment Standards Act, 2000.
Human rights complaints
If the termination appears connected to a protected ground such as disability, age, religion, or family status, the employee may file a complaint under the Ontario Human Rights Code.
Retaliation allegations
If the employee previously raised complaints about harassment, safety concerns, or workplace policies, termination may be characterized as a reprisal, creating additional legal exposure.
When termination may be appropriate
Termination may become necessary when an employee's behaviour significantly disrupts the workplace or violates company policies. However, termination decisions must always be based on documented behaviour rather than personality conflicts or general dissatisfaction.
Ongoing insubordination
Persistent refusal to follow reasonable management directions after warnings have been issued.
Harassment or bullying
Conduct that creates a hostile or toxic environment for coworkers and has not been corrected through progressive discipline.
Repeated policy violations
Continued breach of workplace policies after documented warnings and a fair opportunity to correct the behaviour.
Refusal to perform duties
Sustained refusal to carry out assigned and reasonable job responsibilities without legitimate justification.
Is the behaviour documented and is your process defensible?
The strength of a termination decision depends heavily on documentation and process. Our employer lawyers can assess your situation before you act and help you terminate safely and compliantly.
Get Termination Advice Or call us: 1-800-771-7882How to terminate a disgruntled employee safely in Ontario
Document employee behaviour thoroughly
Keep clear records of all incidents involving misconduct, performance issues, disciplinary actions, and complaints made by coworkers. Documentation demonstrates that termination was based on legitimate, objective business reasons and is your primary defence against legal claims.
Apply progressive discipline consistently
In most cases, employers should use progressive discipline before termination. This typically includes verbal warnings, written warnings, suspension or a final warning, and termination if the behaviour continues. Consistent disciplinary procedures demonstrate that the employer acted fairly and gave the employee a genuine opportunity to correct the issue.
Enforce workplace policies consistently across all employees
If similar behaviour by other employees was tolerated without consequence, terminating one employee for the same conduct creates legal risk. Selective enforcement can be used as evidence that the termination was motivated by something other than the stated reason.
Provide appropriate severance where required
Unless the employer can establish just cause for dismissal, employees are generally entitled to termination pay, notice of termination, and severance pay in some cases. Failing to provide proper compensation results in wrongful dismissal exposure. Review your employment contracts to confirm whether termination clauses are enforceable before relying on them.
Seek legal advice before terminating
Legal advice before a termination decision is made is significantly less costly than defending a claim after. A lawyer can assess your exposure, review the documentation, advise on severance obligations, and help you execute the termination in a way that reduces legal risk.
What if the employee makes false allegations before or after termination?
Some employers face situations where a disgruntled employee makes accusations against management or coworkers. Even if allegations appear unfounded, employers must investigate complaints objectively, avoid any retaliatory actions, and document all steps taken during the investigation. Terminating an employee while an unresolved complaint is open significantly increases legal exposure. Seek legal advice before acting in these circumstances.
Severance and the Bardal factors
Where termination occurs without just cause, courts and adjudicators determine the appropriate notice or severance based on the Bardal factors established in Canadian employment law. These include length of service, age of the employee, nature of the position, and availability of similar employment. Long-serving or senior employees may be entitled to significant severance. Reviewing the termination clause in your employment contracts before relying on it is essential, as poorly drafted clauses may be unenforceable under Ontario law.
Frequently asked questions about terminating a disgruntled employee in Ontario
Can I terminate a disgruntled employee in Ontario?
Yes, but the manner and process matter significantly. A termination without just cause requires proper notice or pay in lieu and severance where applicable. A termination for just cause requires documented, serious misconduct and a defensible progressive discipline process. In either case, getting legal advice before acting reduces the risk of costly claims.
What is progressive discipline and do I have to use it?
Progressive discipline is a stepped process of verbal warnings, written warnings, suspension, and termination that gives employees a fair opportunity to correct their behaviour before being dismissed. While it is not always legally mandatory, failing to use it before termination significantly weakens an employer's position if a wrongful dismissal claim is brought. It is strongly advisable in all but the most serious cases of misconduct.
Can I terminate an employee for just cause based on disgruntled behaviour?
Possibly, but the bar for just cause in Ontario is high. A single incident of dissatisfaction or rudeness is unlikely to meet the standard. Just cause generally requires serious misconduct such as persistent insubordination, harassment of coworkers, or wilful violation of workplace policies after documented warnings. Courts assess whether the conduct was so serious that it fundamentally broke the employment relationship.
What if the employee files a human rights complaint after termination?
A human rights complaint after termination is more likely to succeed if the termination appears connected to a protected ground under the Ontario Human Rights Code, or if it followed a complaint or accommodation request. Thorough documentation of legitimate business reasons for the termination, consistent application of policies, and legal advice before acting all strengthen the employer's position if a complaint is filed.
When should an employer seek legal advice about terminating an employee?
Before taking any action, particularly where the employee has raised complaints, holds a senior role, has long service, or where the termination may involve significant severance obligations. Mistakes made before or during a termination are difficult to undo. Early legal advice is significantly less costly than defending a wrongful dismissal or human rights claim after the fact.
Speak with an Ontario employer lawyer
If you are managing a disruptive employee or considering a termination, our team can help you assess your options, review your documentation, and execute the decision in a way that protects your organization. We advise employers across Ontario on employee terminations, wrongful dismissal risk, and workplace 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. ©