Unjust Dismissal and the Canada Labour Code
Digging deeper into the employment law issues of employees terminated allegedly with just cause.
EMPLOYMENT LAW | FIRED WITHOUT CAUSE | FIRED FOR CAUSE | LAYOFF | FORCED OUT | QUIT / RESIGN | CLASS ACTIONS
Contact Neufeld Legal PC at 403-400-4092 / 905-616-8864 or Chris@NeufeldLegal.com
With the exceedingly high legal standard for an employer to terminate an employee for "just cause", as required by the Canada Labour Code, the failure of those employers to meet this exceedingly high legal threshold of "just cause" can precipitate an "unjust dismissal" lawsuit being filed by the fired employee against their former employer. The approach that a fired employee undertakes in pursuing an "unjust dismissal" lawsuit depends upon the particular facts and circumstances of the employment situation, which can proceed through the Canada Labour Code's "unjust dismissal" (Part III, Division XIV) procedure through the Labour Program of Employment and Social Development Canada to the more extensive lawsuits that our own law firm pursues in employment disputes subject to the Canada Labour Code.
Whereas, employees subject to provincial employment standards legislation are capable of being terminated "with cause" (whereby no notice or payment in lieu of notice is required) or "without cause" (provided notice or payment in lieu of notice is given), together with having further legal recourse to common law wrongful dismissal; employees subject to the Canada Labour Code gain the benefit of the federal legislation's unjust dismissal provisions, which provides specific protections to eligible federally regulated employees from being dismissed without "just cause." If an employer terminates such an employee without a valid reason, the dismissal can be legally challenged as being "unjust."
The legal standard for "just cause" is exceedingly high, with an employer having to establish that the terminated employee's misconduct was sufficiently serious that it fundamentally breaches the employment contract and destroys the trust and faith inherent in the employment relationship. This means the misconduct is so egregious that the employment relationship cannot reasonably continue, with recognized examples of conduct that may constitute "just cause" including:
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Serious Misconduct: Theft or dishonesty: Misappropriation of company property, falsifying records, significant misrepresentation.
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Violence or harassment: Physical assault, threats, severe bullying, or discriminatory harassment.
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Insubordination: Deliberate and persistent refusal to follow reasonable and lawful directions from the employer.
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Breach of trust: Actions that demonstrate a complete breakdown of trust, such as sharing confidential company information, working for a competitor (conflict of interest), or misusing company resources for personal gain.
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Serious breaches of company policy: Especially if the policy is well-communicated and the breach causes significant harm or risk.
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Habitual Neglect of Duty/Incompetence (often requiring progressive discipline):
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For less severe issues like poor performance, chronic lateness, or minor absenteeism, a single incident is rarely enough for just cause.
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In these cases, the employer must typically demonstrate:
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Clear communication of performance expectations: The employee was aware of what was required.
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Adequate training and resources: The employee was given the tools and support to meet expectations.
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Progressive discipline: The employer provided clear warnings, opportunities for improvement, and communicated the consequences of continued failure to meet standards.
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Inability to meet standards: Despite these efforts, the employee consistently failed to meet reasonable expectations.
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This also requires that the employment situation be assessed on a contextual basis when considering whether or not the employer had "just cause" for termination. Consideration of all the surrounding circumstances are taken into account in assessing "just cause" versus "unjust dismissal", including:
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Nature and severity of the misconduct: How serious was the act? /span>
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Employee's disciplinary record: Is this an isolated incident or part of a pattern?
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Length of service: Longer-serving employees generally have a higher standard for just cause dismissal.
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Employee's position and responsibilities: The impact of the misconduct may vary depending on the employee's role.
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Employer's policies and practices: Were policies clear? Were they consistently applied?
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Mitigating factors: Such as remorse, an explanation for the conduct, personal circumstances, etc.
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PProportionality: Was dismissal the appropriate and proportionate response to the misconduct?
Meeting the legal threshold for "just cause" under the Canada Labour Code is far more stringent than employers would have you believe, especially given the additional legal factors that tend to be working against those employers from our own legal research and analysis, and yet most employees tend to accept the unfounded justification of their former employer and not fight back for what they are rightfully due, which tends to be more significant than what most employees might ever realize.
If your former employer has alleged that you've terminated for "just cause", you should never accept their position with out an appropriate assessment of their biased one-sided presentation of the allegations, together with looking at the entirety of one's employment with that employer, as the legal recourse available to an employee terminated under the Canada Labour Code is far greater than they might otherwise have expected.
To schedule a confidential initial consultation to discuss our tactical approach to your employment termination, contact our law firm at Chris@NeufeldLegal.com or 403-400-4092 / 905-618-8864, such that we might properly explore the particulars of your former employer's allegations and what legal rights you are actually entitled to, as the Canada Labour Code was designed to protect you the employee (and not your former employer).