When an employer claims to have just cause to terminate your employment, the picture they paint at the dismissal meeting can seem compelling—and final. Many of our clients leave those meetings feeling pressured into believing they’ve done something so serious that they have no rights or recourse. But what many Canadians don’t realize is this: courts rarely agree with employers when it comes to just cause terminations.
What Is “Just Cause”?
In Ontario, an employer can terminate an employee without notice or severance if they can prove that the employment relationship has been irreparably damaged due to the employee’s misconduct. This is known as a just cause termination. However, the legal threshold is high.
To succeed, the employer must demonstrate that:
- The misconduct was serious enough to destroy the employment relationship; and
- No lesser disciplinary action (such as a warning or suspension) would have been appropriate.
In most cases, a single incident—unless it involves something as serious as fraud, theft, violence, or sexual misconduct—will not meet this threshold. Even then, context matters.
Case Spotlight: Phanlouvong v. Northfield Metal Products, 2014 ONSC 6585 (CanLII)
Mr. Phanlouvong had worked at Northfield Metal Products for many years. One day, a workplace argument between him and a co-worker escalated. In a moment of anger, Mr. Phanlouvong punched his colleague in the face. While the injuries were minor, the employer responded swiftly, terminating Mr. Phanlouvong for just cause.
The case went to court.
The judge acknowledged that the physical assault was serious, but emphasized that the law requires proportionality. That means considering:
- The severity of the misconduct;
- The employee’s disciplinary history;
- Whether the employee was provoked; and
- The availability of less severe disciplinary measures.
The Court found that Northfield did not adequately consider alternatives to dismissal, such as a suspension. It also noted that the co-worker had contributed to the escalation of the situation and did not attempt to de-escalate or walk away.
As a result, the Court ruled in Mr. Phanlouvong’s favour and awarded him 15 months’ pay in lieu of notice.
Singh Lamarche LLP is a Toronto law firm specializing in employment law. If you have been terminated for just cause and wish to review your rights, book a consultation today.
