Just Cause and With Cause Termination in Ontario

In Ontario, just cause termination and with cause termination are types of employment dismissals that allow an employer to end the employment relationship without notice or termination pay. While these terms are sometimes used interchangeably, each has specific legal implications. Understanding when they apply, the legal requirements, and potential consequences is essential for both employers and employees.

What is Just Cause Termination?

Just cause termination allows an employer to end an employment relationship without providing notice or termination pay due to serious employee misconduct or other substantial issues. This type of termination is reserved for severe cases, such as:

Under Ontario Regulation 288/01, Section 2(1) of the Employment Standards Act (ESA), an employer can terminate an employee without notice if they engage in “wilful misconduct, disobedience, or wilful neglect of duty.” For employees, this means that significant misconduct could result in immediate termination without a severance package. For employers, it is crucial to have clear evidence and documented incidents before pursuing just cause termination.

What is With Cause Termination in Ontario?

With cause termination in Ontario also allows for employment dismissal without notice or termination pay but applies to situations where an employee’s actions fundamentally disrupt the employment relationship. Examples include:

  • Severe misconduct affecting job performance.
  • Frequent absenteeism or consistently poor performance, especially when prior warnings were issued.
  • Serious dishonesty that erodes the employer’s trust.

A with-cause termination has substantial consequences for employees. It appears on the employee’s Record of Employment, potentially affecting their eligibility for employment insurance. Due to the high standard required to justify this type of termination, employers must exercise caution and ensure that they are not infringing on employees’ rights, especially in cases where an employee might require accommodations under the Ontario Human Rights Act.

Legal Considerations and Rights for Employers and Employees

Ontario law mandates that just cause and with cause terminations meet specific criteria. Courts apply a contextual approach when determining if termination is justified, considering the severity of the employee’s actions, the work environment, and prior disciplinary measures.

For employees, understanding these rights can be critical if they believe a termination was unjust or improperly handled. Consulting with an employment lawyer can help employees assess whether they may be entitled to compensation, even after a with cause termination.

For employers, it is essential to follow these guidelines to ensure compliance and minimize legal risks:

  1. Issue Warnings and Document Misconduct: Progressive discipline, with documented warnings, helps establish a clear record of performance issues or misconduct.
  2. Consider Context and Severity: Ensure the alleged misconduct or performance issues genuinely meet the threshold for just cause or with cause termination.
  3. Provide Opportunities for Improvement: Offering employees a chance to improve can demonstrate fairness and reduce the risk of claims.
  4. Assess Accommodation Needs: Employers should verify that they are respecting employee rights, particularly when dealing with disabilities or medical needs.

How Legal Support Can Help

For employees, an employment lawyer can provide valuable support when facing a termination with cause. Lawyers can review the circumstances surrounding the dismissal, advise on potential rights to compensation, and help negotiate adjustments to the Record of Employment if necessary.

For employers, a lawyer can assist in reviewing the case details, ensuring proper documentation, and advising on legal compliance. Proper legal guidance helps employers manage risk and ensure that they meet Ontario’s employment standards.

Benefits of a Compliant Termination Process

Conducting just cause or with cause terminations with fairness and compliance benefits both employees and employers:

  • Minimizes Legal Risks: Following proper procedures helps employers avoid wrongful dismissal claims, while employees gain assurance of a fair process.
  • Fosters Workplace Integrity: Addressing serious issues transparently sets clear standards for all employees.
  • Protects Reputation: Ensuring compliance and fairness protects the organization’s reputation and demonstrates respect for employee rights.

Conclusion: Safeguarding Rights and Compliance in Just and With Cause Terminations

Navigating just cause termination and with cause termination in Ontario requires understanding the legal standards and consequences. For employees, knowing your rights can help protect against unfair dismissal. For employers, a compliant process helps ensure decisions are lawful, reducing risks of disputes and fostering a respectful work culture.

If you are an employer or an employee facing questions about termination, Achkar Law can provide the necessary legal guidance. Our team is equipped to assist with reviewing termination situations, advising on compliance, and representing clients in legal proceedings to protect their rights and interests.

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.

Toll-free: 1 (800) 771-7882
Email: [email protected]

Facing Termination Without Notice or For Cause?

If you are dealing with a termination without notice or termination for cause, it is essential to seek legal advice immediately. Achkar Law’s experienced termination lawyers can help you understand your rights, challenge unfair terminations, and pursue the compensation you deserve.
Toll-free: 1 (866) 553-1976 | Email: [email protected]

 

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