Termination Without Cause

Termination without cause may give rise to damages

A termination without cause in Ontario may allow an employee to commence a wrongful dismissal lawsuit. Employers are normally not required to have a reason to dismiss an employee. Business should be allowed to arrange their affairs and contract their workforce to survive in a competitive market. Nonetheless, if an employer is considering firing an employee and there is no cause, the employer must give reasonable notice or pay in lieu of notice to the employee.

If the employer fails to meet its legal obligations in a termination without cause, the employee may be able to pursue a wrongful dismissal lawsuit against the employer. Whether or not there is cause to dismiss an employee is a highly contentious issue. If there is cause to dismiss, the employee is not entitled to receive working notice or pay in lieu of notice. This principle is prevalent in the common law and has been codified in Sections 54 and 57 and 58 of the the Employment Standards Act.

The longer the employee has been employed, the longer the notice period he or she may be entitled to becomes. This also increases the potential financial liability of the employer and the likelihood of a wrongful dismissal action being started by the employee. It is important to consult with a wrongful dismissal lawyer to ensure that your rights are protected.

Termination without cause must be treated seriously by employers and employees alike

There are many instance when a termination without cause may have taken place without the knowledge of the parties involved. For example, an employer may believe that an employee who is slow at performing his or her work can be let go for cause. That may not be the case as there are many cases where it was found that incompetence is not just cause for dismissal. In other words, the employer may believe that the company was right in firing the employee, but may still be responsible for a termination without cause. This in turn may allow the employee to assert legal rights through a wrongful dismissal lawsuit. If a termination without cause has occurred, the employee may be entitled to sue for wrongful dismissal and common law pay in lieu of notice.

Another example where a termination without cause may have occurred is where an employer alleges just cause for dismissal related to misconduct but has failed to engage in progressive discipline of any sort. There are many instances where employers have a duty to warn the employee, or progressively discipline the employee to allow the employee to correct the conduct at issue. Warnings and discipline should not be overlooked by the employer in the termination process. If a an employee is wrongfully dismissed, it may be too late for the employer to backtrack. It is therefore important to seek legal advice from a wrongful dismissal lawyer to avoid risking a termination without cause when firing an employee. Even after a possible wrongful dismissal has occurred, it is prudent to legal advice from an employment lawyer to establish whether or not a termination without cause has occurred.

The information on this website is for informative purposes only. It is not legal advice. A lawyer can only be retained after a consultation. If you need a wrongful dismissal lawyer or if you have any other employment law issues, call me at: 416 323 3614