Termination with Cause - FAQ
What is a Termination “for just cause”?
If an employee has been terminated with cause, that means the employer has enough legal reason to end their employment immediately because of significant wrongdoing. There must have been conduct by the employee which goes to the root of the employment contract, fundamentally strikes at the employment relationship and therefore fractures the employment relationship that cannot be recovered. It is considered one of the harshest ways to be dismissed by an employer. Examples of conduct include serious misconduct, theft or fraud, and willful disobedience.
What do you have to prove?
The employer must prove:
1. The employee engaged in misconduct
2. The level of misconduct was severe
3. Termination for cause was the only option available to them
Can I terminate due to poor performance?
An employee can be terminated due to poor performance, but it would most likely be on a “without cause” basis.
While an employee can be fired for cause due to poor performance, it is extremely difficult for an employer to do so in BC. It is typically not an adequate reason to terminate for just cause, unless the poor performance is intentional or particularly reckless. Before an employer considers firing an employee for cause on the basis of poor performance, they should provide warnings and support. The warnings should be clear and given in writing to the employee. It is good practice to have the employee sign the warning as evidence they have received and read it.
If terminated for cause, does the employee get paid any termination pay?
An employee who is terminated for cause is not entitled to any severance pay or notice of termination typically because the employee has committed an act so egregious that he or she is not deserving of severance pay or notice. Although it may be appealing to employers to terminate for cause and therefore not have to provide a severance package to an employee, it should be done with caution. Before terminating an employee with cause, the employer must be certain he or she can prove that there was sufficient cause.
What are the consequences if an employee is terminated for cause, but there was no “just cause”?
Employers often incorrectly fire employees for cause. “Just cause” is a high bar to meet, and the courts will make the employer establish it on a balance of probabilities. Often, an employer’s reasoning for termination with cause will not hold up in the eyes of the law. Actions an employer considers unacceptable does not necessarily mean they have just cause for termination. If an employee has been a victim of unfair just cause termination in BC, he or she may have legal grounds to make a claim against the employer for wrongful dismissal and be compensated for their losses.
For both employers and employees, this is a delicate area to navigate and we recommend that you speak to a lawyer to know your options.
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Written by Sara Albert, Albert & Co. Law LLP, January 8, 2025.
© Albert & Co. Law LLP. The contents of this article do not constitute legal advice. Readers should seek legal advice in relation to their own specific circumstances.