Does the Employer have Just Cause to Terminate?

Having just cause allows the employer to terminate the employee immediately without giving the employee working notice or severance pay. It is, when terminating an employee, what most employers look to establish because it is the quickest and presumably the cheapest way to rid themselves of a bad employee. However, employers are often mistaken about whether an event or a series of events (such as insubordination, poor performance, lateness, dishonesty) amount to just cause, and many expensive lawsuits arise because an employee, and ultimately a judge, disagrees that the employer had just cause to terminate.

There is no universal definition of just cause, but it exists where there is a fundamental breach in the employment relationship, and it entitles the employer to terminate the employee without having to give reasonable working notice or pay in lieu of the working notice. A fundamental breach of an employment relationship is conduct that destroys the root of the employment relationship, frustrating or destroying the purpose of the employment agreement (BC Court of Appeal: Carr v. Fama Holdings Ltd. 1989). Just cause can only be determined on a case by case basis.

What is important to understand about just cause is that it may or may not arise from one event. Singular events, such as theft of significant employer property, workplace violence, substance abuse or harassment can amount to just cause and allow for immediate dismissal without severance. More commonly, however, an employer will want to establish just cause, but only has a series of less significant events to rely on for their reason to terminate. For example, the employee may be repeatedly late by 10 minutes, regularly disrespectful or lazy at the workplace, or continually making the same mistake despite correction. It is these more common cases where it is important to follow particular steps to record the undesirable behavior, assist the employee in correcting the behavior, warn of specific consequences and carry out the actual termination in a respectful manner in order to avoid being successfully sued for wrongful dismissal damages.

If you have a question about this topic or another legal issue, contact us for a legal consultation.  Reach us at 250-888-0002, or via email at info@leaguelaw.com.