In Canada, “just cause” or “for cause” allows an employer to terminate an employee without notice or severance when the employee’s misconduct is so serious that it fundamentally destroys the employment relationship. Courts apply this standard very narrowly, because termination for cause is the most severe employment outcome.
The employer bears the full burden of proof. It must show not only that misconduct occurred, but that the misconduct was serious enough to justify immediate dismissal. Courts do not assess misconduct in isolation. Instead, they use a contextual analysis, considering factors such as the employee’s role, length of service, prior discipline, intent, and whether the conduct was isolated or repeated. Critically, the terms of the employment agreement itself must also be reviewed.
Common allegations of just cause include theft, fraud, dishonesty, serious insubordination, workplace violence, conflicts of interest, or major breaches of policy. However, no category of misconduct is automatically just cause. Even serious wrongdoing may fall short if dismissal is disproportionate in the circumstances.
Poor performance, errors, or minor policy breaches rarely amount to just cause on their own. Employers are generally expected to use progressive discipline and provide an opportunity to correct behaviour unless the misconduct is truly egregious.
Courts also examine the employer’s conduct. Delays in responding, inconsistent discipline, or failure to investigate properly can undermine a just-cause claim. If an employer wrongly alleges just cause, the termination may be treated as wrongful dismissal, exposing the employer to liability.
In short, just cause exists only where an employee’s conduct makes continued employment impossible. It is a high legal threshold, not a routine justification for termination.
IMPORTANT LEGAL DISCLAIMER
The information provided above is for general legal information purposes only and does not constitute legal advice. Employment law is highly fact-specific, varies by province and territory, and depends on individual circumstances. Reading or relying on this information does not create a lawyer-client relationship. You should not act, or refrain from acting, based on this information without first obtaining advice from a qualified lawyer licensed in your jurisdiction. Canada Legal Guidance makes no representations or warranties as to the accuracy, completeness, or applicability of this information to any specific situation. Past outcomes do not guarantee future results.