Just Cause and With Cause Termination in Ontario
In Ontario, both just cause termination and with cause termination allow an employer to end the employment relationship without notice or termination pay. Although these terms are sometimes used interchangeably, they have distinct legal meanings. Understanding the differences, legal requirements, and consequences is important for anyone facing termination or managing a workplace in Ontario.
Understanding Just Cause Termination
A just cause termination occurs when an employer ends the relationship due to serious employee misconduct or other serious issues. This is reserved for severe cases, including:
Theft or fraud
Dishonesty, such as falsifying credentials or records
Insubordination, like refusing lawful instructions
Harassment or workplace violence
Ontario’s Employment Standards Act (ESA) allows termination without notice in cases of “wilful misconduct, disobedience, or wilful neglect of duty” (Ontario Regulation 288/01, Section 2(1)).
For employees, this means serious misconduct can lead to immediate termination with no severance. For employers, it is critical to have clear, documented evidence before claiming just cause, as the threshold is high.
Contact us by phone toll-free at 1-800-771-7882 or email us at [email protected].
What Does With Cause Termination Mean?
With cause termination also allows an employer to dismiss an employee without notice or termination pay. While similar to just cause, it typically relates to broader situations where an employee’s actions undermine the employment relationship.
Examples include:
Chronic absenteeism or repeated lateness, especially after warnings
Ongoing poor performance despite opportunities to improve
Serious dishonesty damaging the trust between employee and employer
A with cause termination will be noted on the employee’s Record of Employment (ROE), which can affect eligibility for Employment Insurance benefits. Given the serious consequences, employers need to proceed carefully and ensure they respect any accommodation obligations under the Ontario Human Rights Code.
If you’re uncertain whether your termination falls under with cause, speak with Achkar Law. We can help clarify your rights and next steps. Toll-free: 1-800-771-7882.
Legal Requirements and Considerations
Ontario courts apply a contextual approach when determining whether a termination for cause is justified. They consider factors such as:
The severity of the conduct
The nature of the job and work environment
Prior warnings and disciplinary steps taken
For employees, understanding these standards is crucial. Even in cases where termination is claimed to be with cause, there may be grounds for compensation or dispute.
For employers, it’s essential to ensure:
Clear Documentation: Maintain records of warnings and performance reviews.
Progressive Discipline: Give employees fair opportunities to correct behaviour.
Context Matters: Evaluate each situation carefully, considering mitigating factors.
Accommodation Duties: Ensure you’re not overlooking accommodation needs related to disability, family status, or other protected grounds.
Why Legal Advice Matters
Whether you’re facing a termination or managing one as an employer, legal advice can make a significant difference.
For employees, a lawyer can assess whether the termination was justified, help pursue compensation, and advise on correcting your Record of Employment if needed.
For employers, legal guidance can help reduce risk, ensure legal compliance, and prepare the necessary documentation to support your decisions.
Unsure how to proceed? Achkar Law assists both employers and employees in Ontario with termination issues. Reach out today for clear legal advice.
The Benefits of a Proper Termination Process
Handling just cause or with cause terminations properly protects everyone involved:
Reduces Legal Risk: Employers avoid claims of improper dismissal, while employees gain clarity about their rights.
Maintains Workplace Integrity: Clear processes uphold trust and fairness in the workplace.
Protects Reputation: A fair process preserves the reputation of both parties and reflects respect for workplace rights.
Final Thoughts: Protecting Your Rights and Interests
In Ontario, understanding the nuances of just cause and with cause termination is essential. For employees, knowing your rights helps you respond confidently to termination. For employers, a fair and compliant process is key to avoiding disputes and maintaining workplace standards.
If you are facing a termination situation or have questions about your rights and obligations, Achkar Law can help. We review termination circumstances, advise on compliance, and represent clients in legal matters to protect their interests.
Contact Achkar Law Today
If you’ve been terminated for cause or are concerned about an impending termination, contact us today. We can review the circumstances and help determine if you are entitled to compensation or legal remedies.
Toll-free: 1-800-771-7882 | Email: [email protected]