Workplace misconduct can range from inappropriate behaviour and dishonesty to serious policy breaches or even illegal acts. For employers, handling misconduct properly is critical to protecting the organization and minimizing legal risks.

Failing to respond to misconduct — or responding incorrectly — can lead to constructive dismissal claims, human rights complaints, or wrongful dismissal lawsuits. Consulting an employment lawyer early on can help you approach these situations with confidence.

What Is Considered Workplace Misconduct?

Misconduct refers to a wide range of employee actions that violate workplace policies, expectations, or laws. Common examples include:

• Insubordination
• Absenteeism or chronic tardiness
• Poor performance or incompetence
• Bullying, harassment, or assault
• Theft, fraud, or embezzlement
• Misuse of confidential information

Once an employer becomes aware of potential misconduct — whether through a complaint, observation, or other means — they have a duty to act. The first step is often to begin a workplace investigation.

Starting a Workplace Investigation

A workplace investigation should begin as soon as possible after a complaint or incident. Employers should:

• Inform the employee of the allegations
• Allow the employee to respond
• Assign a neutral party to investigate
• Document each step and decision made
• Keep all parties informed of the process

A well-executed investigation helps ensure fairness and can protect your organization from legal fallout.

→ Our workplace investigation lawyers assist employers with designing and conducting legally sound investigations. Call us Toll-free: 1-800-771-7882 for more information. 

Managing the Situation During the Investigation

While the investigation is underway, employers may need to take temporary steps to protect the workplace. These might include:

• Reassigning the employee to a different department
• Having them report to a different manager
• Allowing them to work remotely
• Suspending the employee (with or without pay)

Be cautious: indefinite or unreasonable suspensions could trigger a claim for constructive dismissal. Employers do not have implied authority to suspend employees indefinitely. Consult a lawyer to ensure any measures taken are legally defensible.

Disciplinary Responses to Misconduct

If the investigation confirms that misconduct occurred, employers should follow a clear disciplinary process. This may include:

• Verbal and written warnings
• Performance improvement plans (PIPs)
• Mandatory training or education
• Progressive discipline
• Suspension with or without pay

In serious cases, termination for cause may be appropriate — but this is a high legal standard in Ontario and should be approached with care.

→ Termination for cause must be supported by clear evidence and a well-documented process. Our employment lawyers can help assess whether just cause applies.

Legal Risks Employers Must Consider

Improper handling of misconduct can expose your organization to:

• Constructive dismissal claims
• Human rights complaints
• Bad faith or wrongful dismissal lawsuits

Employers must also ensure that all actions — including discipline or termination — are not discriminatory or unreasonable. Alleging just cause without sufficient evidence can lead to additional damages.

When to Consult an Employment Lawyer

An employment lawyer can help employers:

• Design and implement a compliant workplace investigation
• Determine appropriate disciplinary steps
• Reduce the risk of constructive dismissal or discrimination claims
• Assess whether a situation meets the standard for just cause
• Respond to complaints from employees or regulatory bodies

→ Every misconduct case is different. Getting tailored legal advice can protect your organization and reduce legal exposure.

Take Action with Confidence

Misconduct in the workplace should never be ignored. But responding the wrong way can create new problems. Employers in Ontario should seek legal advice early to handle these situations properly.

At Achkar Law, our employment lawyers work with organizations across Ontario to address workplace misconduct with confidence and legal clarity.

→ Contact Achkar Law to speak with an employment lawyer about workplace misconduct.

• Phone: 1 (800) 771-7882
• Email: [email protected]