Terminating an employee for just cause is a serious matter that requires careful consideration, adherence to legal protocols, and a clear understanding of the employee’s rights and the employer’s responsibilities.
In Ontario, the process involves navigating employment contracts, progressive discipline, and proving willful misconduct. In this comprehensive guide, the Suzanne Desrosiers Professional Corporation law firm will walk you through the essential steps, emphasizing the significance of legal counsel, due diligence, and more.
Please don’t hesitate to contact the lawyers at our firm if further questions arise. We can be reached at (705) 268-6492 or info@sdlawtimmins.com.
Understanding Just Cause Termination
Employers who have only recently brought on a team of employees or have never encountered friction within the workplace might think that employee termination is relatively straightforward. In the workplace, employee dismissal is the first consequence that might come to mind for some people.
Employee dismissal isn’t as simple as that, though. In the province of Ontario, there are many steps that an employer must follow when they’re considering terminating an employee.
Second Chances Are Often the Right Path
It might fluster new managers and business owners to learn that an employee can’t part ways with a poorly matched employee at the first sign of distress. However, most employers, upper management leaders, and business owners understand that one or two minor infractions or errors in judgement are not reason enough to let an employee go.
People make mistakes, and when it comes to professional development and growth, there are bound to be growing pains. Employee retention, not termination, should be the aim of any company due to all the good it does for morale and company growth. For these reasons, it’s best practice for employers to always grant employees a certain amount of latitude so they can improve.
Unfortunately, a generous amount of understanding on the part of the employer has its limits. Repeated infractions coupled with an unwillingness to improve can leave employers with no choice but to let an employee go. In times such as those, termination may be in order.
Employment Contracts: The Foundation of Termination
The first crucial step in a just cause termination is to review the employment contract. Employment contracts are legally binding agreements that outline the terms and conditions of the employment relationship. They often include clauses related to termination, disciplinary actions, and grounds for dismissal. Also, the law has evolved with respect to termination clauses, and what may have been acceptable a few years ago isn’t acceptable today.
The best thing any employer can do is present this contract to employees at the beginning of the professional relationship before the employee commences work, as otherwise, the employment contract may be null and void unless an additional consideration has been provided. A clear and detailed employment contract, reviewed and signed by the employee, proves that they understand what the employer expects of them and are aware of the causes for termination.
Progressive Discipline: A Prerequisite for Just Cause
In Canada, progressive discipline is a systematic and fair approach to addressing employee performance or behavioral issues within the workplace. This approach emphasizes a series of graduated steps, each increasing in severity, designed to guide employees toward improved conduct or performance before considering termination. The primary goal of progressive discipline is to correct behavior rather than to punish, fostering a supportive and constructive work environment. For federally governed employers that is the only way they can justify a just cause dismissal after 12 months of continuous employment.
Typically, progressive discipline unfolds in several stages:
Verbal Warning
The initial step involves a private conversation between the employee and their supervisor, outlining the areas of concern and expectations for improvement. This serves as an informal alert to the employee about the need for corrective action. It still needs to be confirmed in writing and acknowledged by the employee that the employer is applying progressive discipline, and if the behaviour isn’t corrected, it may lead to termination.
Written Warning
If the issues persist, or it is a matter of health and safety, a written warning is typically issued, clearly documenting the problem, expectations, and potential consequences if improvement isn’t observed. This formalizes the corrective process and establishes a record for future reference. Again, this must be confirmed in writing, and the employee must acknowledge the discipline, that the employer is applying progressive discipline, and that if the behaviour isn’t corrected, it may lead to termination.
Suspension With or Without Pay
In cases where verbal and written warnings prove ineffective, a temporary suspension may be employed. This allows both parties time to reassess the situation and consider the implications of continued misconduct or performance issues. A suspension without pay must be either permitted in the employment contract or the employment policies, as otherwise it isn’t permissible. Again, this must be confirmed in writing, and the employee must acknowledge the discipline, that the employer is applying progressive discipline, and that if the behaviour isn’t corrected, it may lead to termination.
If, despite progressive discipline, the employee fails to meet expectations, termination may be the final step. However, thorough documentation of the disciplinary process is crucial to ensuring the decision is fair, justifiable, and legally defensible.
Willful Misconduct: Establishing Grounds for Termination
Just cause termination in Ontario typically hinges on the concept of willful misconduct. Willful misconduct refers to intentional and deliberate actions by an employee that violate workplace rules or standards. This can include theft, fraud, insubordination, dishonesty, or other serious breaches of trust.
Employer’s Burden of Proof: You Must Demonstrate Just Cause
To terminate an employee for just cause, employers in Ontario must meet a high standard of proof. The burden is on the employer to demonstrate that the employee’s actions warrant dismissal. This requires clear and convincing evidence that the employee engaged in willful misconduct and that progressive discipline was insufficient to address the behavior.
Documentation Is Key: Employee Files and More
Maintaining detailed records throughout the employment relationship and disciplinary process is essential. Documentation serves as evidence in the event of legal challenges in the future. Employers should document performance issues, disciplinary actions, and any communication related to the employee’s behavior.
Investigation Process: Gathering Important Evidence
Before terminating an employee for just cause, employers should conduct a thorough and unbiased investigation. This may involve:
- Collecting witness statements
- Reviewing relevant documents
- Documenting the employee’s alleged misconduct
An impartial investigation is critical to ensuring fairness and demonstrating the employer’s commitment to due process.
Termination Meeting: Handling the Process Professionally
When terminating an employee for just cause, the termination meeting should be conducted professionally and respectfully, preferably at the end of the business day or when the other employees are leaving for lunch to avoid embarrassing the employee in front of his peers. Clearly communicate the reasons for termination.
Legal Counsel: The Importance of Professional Advice
Given the complexities of just cause termination, seeking legal counsel is paramount. Employment lawyers can provide guidance on interpreting employment contracts, navigating the progressive discipline process, and ensuring the termination is legally defensible. Legal advice helps employers mitigate the risk of wrongful dismissal claims and ensures compliance with Ontario employment laws.
Learn More About Just Cause Termination
Do you have more questions about employment contracts, progressive discipline, or just cause termination? Reach out to the Suzanne Desrosiers Professional Corporation at your convenience by calling (705) 268-6492.