Just Cause — Ontario Employment Law
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About Just Cause
In Ontario employment law, a 'just cause' dismissal is often called the 'capital punishment' of employment law, and for good reason. It is the most severe form of termination, allowing an employer to end the employment relationship immediately, without providing any notice, termination pay, or severance pay. However, the bar for an employer to prove just cause is exceptionally high. It is reserved for only the most serious employee misconduct that fundamentally shatters the trust and viability of the employment relationship. This isn't about minor mistakes, occasional lateness, or failing to meet a performance target. Just cause requires conduct that is intentionally harmful, grossly negligent, or demonstrates a complete disregard for the employer's interests.
To establish just cause, an employer carries the heavy burden of proving that the employee's actions were so severe that termination was the only reasonable response. This is known as the principle of proportionality. A court will examine the context of the entire situation: the nature of the misconduct, the employee's role and responsibilities, their length of service, and their disciplinary history. For example, theft, fraud, serious insubordination, or violence in the workplace are common grounds for just cause allegations. In contrast, poor performance is rarely sufficient unless it amounts to gross incompetence and the employer has previously provided clear warnings and a chance for the employee to improve. Because an allegation of just cause is so serious and its consequences so significant, the specific facts of each case are intensely scrutinized. Understanding whether your employer's claim meets this high legal standard is a critical first step in protecting your rights.
Frequently Asked Questions
What kind of behaviour is considered just cause for termination in Ontario?
Just cause typically involves serious misconduct like theft, fraud, dishonesty, workplace violence, extreme insubordination, or a profound breach of a core company policy. The misconduct must be so severe that it irreparably damages the employment relationship.
Can my employer fire me for just cause for one mistake?
It's highly unlikely. For a single incident to be just cause, it must be exceptionally serious, like theft or assault. For lesser issues, courts expect employers to use progressive discipline, such as warnings, before resorting to termination.
If I'm fired for just cause, do I get any severance or termination pay?
No. If an employer successfully proves just cause, they are not obligated to provide notice of termination, pay in lieu of notice, or severance pay under either the Employment Standards Act, 2000 or common law.
My employer says they have just cause, but I disagree. What is the deadline to sue them?
In Ontario, you generally have two years from the date of your termination to file a civil lawsuit for wrongful dismissal. It is crucial to act quickly to ensure you do not miss this strict limitation period.
Is 'poor performance' the same as just cause?
No, not usually. To justify a just cause termination for poor performance, an employer must prove gross incompetence and show that they gave you clear, repeated warnings and a reasonable opportunity to improve, which you failed to do.
When should I contact an employment lawyer about a just cause dismissal?
You should contact a lawyer immediately. An allegation of just cause is a serious mark on your record that can affect future employment. A lawyer can assess the strength of your employer's case and advise you on whether you have a claim for wrongful dismissal.
My employer didn't fire me right away after they found out about the 'misconduct'. Can they still claim just cause?
Possibly not. If an employer knows about misconduct but waits too long to act, a court may find they have 'condoned' the behaviour, effectively losing their right to terminate for just cause based on that specific incident.
Common Scenarios
- A senior financial analyst is terminated for cause after being discovered to have committed insider trading using confidential company information.
- A construction foreman is fired immediately after physically threatening a subcontractor on a job site, in clear violation of the company's zero-tolerance violence policy.
- An employee with 15 years of service is fired for 'just cause' after being late three times in one month, with no prior disciplinary record for tardiness.
- A marketing manager is accused of just cause for submitting expense reports that contain minor, unintentional errors, which they offer to immediately correct.
- A retail worker is fired for cause after an internal investigation proves they were systematically voiding sales and pocketing the cash.
What You Should Know
Featured Cases
W. v. Olympic Wholesale
2026 ONSC 3620 (CanLII) · 2026-06-26Wrongful Dismissal: 19 Months' Notice Plus 14 for Bad Faith
This wrongful dismissal case addressed whether a supervisor's long-standing practice of 'topping up' hours constituted just cause for termination under the ESA. The court found just cause was not established and determined reasonable notice based on the Bardal factors for a 55-year-old employee with 17 years of service. The court fixed reasonable notice at 19 months and extended it by 14 months because bad faith in the manner of dismissal impaired the search for new work.
W. v. Brandt Tractor Inc.
2026 ONCA 272 (CanLII) · 2026-04-16Wrongful Dismissal: Mitigation Income Deducted
This is an appeal from a wrongful dismissal trial decision addressing whether just cause existed for the employee's termination and whether the employee failed to mitigate damages. The Court of Appeal found that the trial judge erred in refusing to deduct mitigation income earned from a lower-paying position during the notice period, but upheld the finding that just cause was not established.
B. v. Dr. C.
2026 ONSC 2009 (CanLII) · 2026-04-15Wrongful Dismissal: Just Cause Found for Misconduct
This wrongful dismissal case involved an employee terminated for misuse of clinic software and patient information, raising issues of just cause and after-acquired cause. The court found that the misconduct struck at the heart of the employment relationship, violating trust and confidentiality, and dismissed the action. Human rights claims regarding age, disability, and accommodation were also raised but were not proven.
O. v Direct Coil Inc.
2026 CanLII 77416 (ON SCSM) · 2026-01-26Dismissal for Cause: HR Employee Confidentiality Breach
This case addresses whether an employer had just cause to dismiss an HR employee for breach of confidentiality and dishonesty, applying the McKinley and Dowling standards regarding trust in sensitive positions. The court upheld the dismissal for cause, finding that the misuse of personnel records and repeated denials were incompatible with continued employment. Additionally, claims for aggravated damages based on the manner of dismissal and human rights discrimination were dismissed.
T. v. Best Buy Canada Ltd.
2025 ONSC 5814 (CanLII) · 2025-10-15Wrongful Dismissal: 15-Year Employee Awarded 18 Months Notice
This wrongful dismissal case addressed whether an employer proved just cause for terminating a specialised technician with fifteen years of service. The court found the employer failed to meet the burden of proving intentional privacy breaches, establishing that the dismissal was without cause. Consequently, the court awarded eighteen months' reasonable notice, rejecting the employer's mitigation defence and denying claims for aggravated or punitive damages.
A. v. Fiera Foods Company
2025 ONSC 3240 (CanLII) · 2025-05-30Wrongful Dismissal: 13-Year Employee Awarded 10 Months' Notice
This wrongful dismissal case involved an employee with 13 years of service who was terminated for alleged time theft and dishonesty. The court considered whether the employer had just cause to terminate the employee based on an investigation supported by video and punch clock data, rejecting the employee's claims of reprisal for whistleblowing and unionization. The court awarded ten months' notice but denied moral or punitive damages due to the lack of bad faith, and drew an adverse inference against the employee for failing to provide evidence of mitigation efforts.
P. v. Sensient Colors
2025 ONSC 3127 (CanLII) · 2025-05-26Wrongful Dismissal: 12 Months Notice for Vaccination Refusal
This wrongful dismissal case involved an employee terminated for refusing to comply with the employer's mandatory COVID-19 vaccination policy. The court found that the employer failed to establish just cause for termination and applied the Bardal factors to determine a reasonable notice period. The employee was awarded 12 months' notice and damages totaling $182,822.84, with the court rejecting the employer's arguments regarding wilful misconduct, frustration of contract, and failure to mitigate damages.
W.W. v. Brandt Tractor Inc.
2025 ONSC 2571 (CanLII) · 2025-05-01Wrongful Dismissal: 18-Year Employee Awarded 17 Months Notice
This wrongful dismissal case involved a long-term employee with 18 years of service who was terminated citing cumulative misconduct. The court found the employer failed to meet the evidentiary burden to prove just cause, as the final incident and hearsay evidence were insufficient. Consequently, the termination was deemed wrongful, and the plaintiff was awarded 17 months' notice based on the Bardal factors.
2551965 Ontario Ltd. v. W.
2024 ONSC 4876 (CanLII) · 2024-09-04Wrongful Dismissal: Just Cause vs. 3 Months Notice
This wrongful dismissal case involved an employee who made verbal threats and breached the duty of loyalty, leading the employer to terminate employment for just cause. The court applied the framework from Dowling v. Ontario to assess the misconduct and found it constituted willful misconduct under the Employment Standards Act, 2000. While the dismissal was upheld for just cause, the court noted that if the dismissal had been without cause, three months' notice would have been reasonable. Additionally, restrictive covenants in the employment contract were found unenforceable due to overbreadth.
W. v. Birks Group Inc.
2024 ONSC 3626 (CanLII) · 2024-06-24Wrongful Dismissal: 30-Year Sales Associate Awarded 24 Months Notice
This wrongful dismissal case addressed whether an employee's conduct constituted just cause for termination or wilful misconduct under the ESA. The court found that theft was not proven and the employment relationship was not irreconcilably damaged, establishing wrongful dismissal. Consequently, the court awarded 24 months' reasonable notice and confirmed entitlement to ESA termination pay and severance.
L. v. Patene Building Supplies Ltd
2024 ONSC 253 (CanLII) · 2024-01-11This is a wrongful dismissal case concerning whether the employer had just cause to terminate the employee. The decision addresses the standard of review applied to the termination and references the Workplace Safety and Insurance Act, 1997.
P. v. CIBC
2023 ONSC 5991 (CanLII) · 2023-11-06A wrongful dismissal case involving allegations of just cause for termination under the Employment Standards Act.
City of Toronto v. Canadian Union of Public Employees
2023 ONSC 2122 (CanLII) · 2023-04-05Judicial Review: Labour Arbitration Discrimination Award
This is a judicial review of a labour arbitration award concerning workplace discrimination and just cause termination. The Divisional Court applied the Vavilov reasonableness standard, finding the arbitrator did not err by not requiring proof of racial motivation for a discrimination finding and adequately addressing evidence regarding comparators.
Labourers’ International Union of North America, Local 183 v. Multy Home LP
2023 ONSC 747 (CanLII) · 2023-01-31The Divisional Court reviewed an application for judicial review of a grievance arbitration award that upheld an employee's dismissal for just cause based on theft. The court noted that credibility findings were amply supported by video surveillance and that the arbitrator did not misapprehend the burden of proof.
R. v Markhaven Inc.
2022 ONSC 3183 (CanLII) · 2022-11-15Wrongful Dismissal: 21-Year Executive Awarded 22 Months Notice
This wrongful dismissal case involved an Executive Director with 21 years of service who was terminated following an investigation into an alleged conflict of interest. The court found the employer failed to prove just cause and applied the McKinley framework, awarding 22 months' notice based on the Bardal factors. Additionally, the court awarded $48,230 for additional entitlements and $50,000 in bad faith damages due to the employer's conduct during the investigation and litigation.
Render v. ThyssenKrupp Elevator (Canada) Limited
2022 ONCA 310 (CanLII) · 2022-04-20Dismissal for Cause: ESA Termination Pay & Costs
This appeal concerns an operations manager with 30 years of service who was dismissed for cause after slapping a female co-worker on the buttocks. The Court of Appeal upheld the trial judge's finding of just cause under the McKinley contextual analysis, but held that the conduct was not wilful misconduct under the ESA regulation, so the employee was entitled to eight weeks' termination pay; severance pay was not awarded because the record did not show the employer's $2.5 million payroll. The court dismissed the appeal on punitive damages and set aside the trial costs award against the employee because of the employer's litigation misconduct.
Hucsko v. A.O. Smith Enterprises Limited
2021 ONCA 728 (CanLII) · 2021-10-15Hucsko v. A.O. Smith: Just Cause for Sexual Harassment
This is an appeal concerning the termination of a senior employee with 20 years of service who was dismissed for cause due to inappropriate comments with sexual connotations made to a co-worker. The Court of Appeal for Ontario allowed the employer's appeal, overturning the trial judge's finding that the dismissal was without cause. The Court concluded the employee's conduct constituted sexual harassment and that termination was a proportional and justified response given his refusal to apologize.
Livshin v. The Clinic Network Canada Inc.
2021 ONSC 6796 (CanLII) · 2021-10-14Fixed-Term Termination: ESA Compliance & Damages
This case addresses the enforceability of a termination clause in a fixed-term employment agreement under the Employment Standards Act, 2000. The court examined whether the clause violated ESA standards by failing to distinguish between common law and statutory just cause, applying principles from Fred Deeley and Waksdale. Additionally, the court determined damages for early termination, including whether layoff periods count toward the remaining term and entitlement to travel allowances and benefits.
G. v. Greater Barrie Chamber of Commerce
2021 ONSC 5005 (CanLII) · 2021-07-19Wrongful Dismissal: Executive Director Just Cause
This wrongful dismissal case concerned an executive director terminated for alleged misconduct, including altering bank documents and taking unauthorized pay. The court analyzed whether the employer had just cause for termination without notice under the McKinley proportionality framework and whether the employee's actions constituted wilful misconduct under the Employment Standards Act. The court found no evidence of bad faith or mental distress, denying aggravated and punitive damages.
N. v. Canadian Tire Corporation et al.
2021 ONSC 3404 (CanLII) · 2021-05-07A wrongful dismissal case involving allegations of just cause for dismissal and claims for damages, including mental distress. The court addressed the employer's justification for termination and claims for compensation.