Termination of employment can be a complex and contentious issue. Understanding the difference between termination without cause and termination for cause is essential for both employers and employees. At OP Lawyers LLP, our Calgary Employment Lawyers are experienced in handling and resolving complex employment disputes under Employment Law.
What is Termination Without Cause?
It is important for both employees and employers to be aware of their rights and obligations under Employment Law.
Additionally, knowing the implications of Employment Law can greatly benefit individuals navigating their employment rights.
Termination without cause occurs when an employer decides to end an employee’s employment for reasons not related to misconduct or poor performance. This type of termination is often due to business needs, restructuring, or other organizational changes. When an employee is terminated without cause, the employer is required to provide reasonable notice or pay in lieu of notice. The length of this notice period can be determined by common law or employment standards legislation and is influenced by various factors such as the employee’s role, length of service, and age.
In some cases, the notice period may be limited to the statutory minimum under the Employment Standards Code, provided that the employment contract explicitly provides that.
What is Termination for Cause?
In contrast, termination for cause occurs when an employee’s conduct or performance is so severe that it justifies immediate dismissal without notice or severance pay. Common grounds for termination for cause can include:
- Serious misconduct
- Insubordination
- Incompetence
- Theft or dishonesty
- Breach of confidentiality
- Sexual harassment
- Intoxication on the job
- Excessive absenteeism
- Violations of trust or breach of company policy
- Damage to property
The determination of just cause is highly fact-specific and depends on the circumstances surrounding each case. Courts typically require employers to meet a high threshold to establish just cause; thus, a single incident is often insufficient unless it is particularly egregious.
Courts recognize the harsh impact of termination for cause. Accordingly, the misconduct of the employee must be significant. Minor breaches of company policies or bad behavior will not generally allow an employer to terminate the employment of an employee for cause. Our Calgary Employment Lawyers are experienced in conducting trials in termination for cause cases and have a track record of success in such cases.
For example, if an employee is terminated for cause due to poor performance, the employer must demonstrate that the employee was given appropriate training and reasonable opportunity to improve the quality of their work. For other forms of misconduct, the employer must show that they attempted to discipline the employee with sanctions which were less harsh e.g. suspension or fine. Generally, the employer can only terminate the employee for cause upon establishing that the lesser punishments were ineffective and the employee continued in their misconduct.
Another example can be a breach of policy. If the employer alleges that the employee breached company policy, the employer will have to show that there was a written policy that was communicated to the employee, the employee was well aware of the policy and breached it in any case.
Steps to Take If You Are Terminated for Cause
CIf you believe you have been wrongfully terminated for cause, it is crucial to take timely and appropriate steps to protect your rights. Here’s what our Calgary Employment Lawyers recommend:
1. Gather evidence
Legally, it is not the employee’s duty to prove that they were wrongfully terminated. The employee is only required to prove that they were employed and that they were terminated for cause. This can easily be established by the employment contract and the final notice of termination that will state that termination for cause. It is the employer’s obligation to prove that they had cause to terminate the employee.
In any case, having evidence to show that the employer did not have a legally justifiable cause for the termination can be useful. Emails, text messages, and other records are often useful in disproving any allegations of just cause.
performance appraisals are specifically useful where the cause for termination is cited as poor performance. If the employer has given good performance appraisals in the past, it can bring into question the validity of future claims of poor performance.
2. Start looking for alternative employment
Employees have a legal obligation to mitigate their damages caused by the wrongful termination. This means that the employee must start taking reasonable steps to find alternative and equivalent employment. The employee is not obligated to accept any job offer. The job must be comparable to the last job with equal pay and equal designation or seniority. If you have to accept a job that pays less than the previous job due to financial constraints, you can often claim the loss of income resulting from accepting the lower paid job. The Court will compare income of the previous job and the new job and grant the balance in damages.
3. Document Your Version of Events
Maintain a detailed record of interactions with your employer leading up to the termination. This documentation is vital for establishing your perspective and supporting your case if you believe the termination was unjust. It is important to maintain notes that are time stamped so that you can prove the chain of events that led to your termination.
4. Consult an Employment Lawyer
An experienced attorney can help evaluate the merits of your case, ensuring that your employer met the required standards for alleging just cause, which includes conducting a fair investigation and providing procedural fairness.
If it is determined that the employer failed to meet these necessary standards or falsely alleged cause, you may be entitled to damages for wrongful dismissal, which can include damages for bad faith conduct.
Our Calgary Employment Lawyers at OP Lawyers are experienced in representing clients in wrongful termination cases and can advise you of the right course of action if you have been terminated for cause or suspect that you will be terminated for cause soon.
Conclusion
Understanding the distinctions between termination without cause and termination for cause is essential for both employees and employers in Canada. At OP Lawyers LLP, we are here to help you navigate these complexities. If you find yourself facing a termination situation, reach out to our Calgary Employment Lawyers for guidance and support. Your rights matter, and we are committed to helping you protect them.
Contact Us Today!
If you need legal assistance regarding your employment situation, don’t hesitate to contact OP Lawyers LLP. Our team of dedicated Calgary Employment Lawyers are ready to help you understand your rights and options.
Disclaimer: This blog post is intended for informational purposes only and does not constitute legal advice. For advice specific to your circumstances, please consult a qualified lawyer at OP Lawyers LLP or another legal professional.