Dismissal for Cause: The High Bar Employers Must Clear

Dismissal with cause, also called just cause, is the most serious form of employment termination in Ontario. It allows an employer to end employment without notice or pay in lieu, but because the consequences are severe, courts apply this standard with exceptional caution.

The High Bar for Proving Just Cause

The bar for proving just cause is extremely high. The onus rests on the employer to demonstrate that the employee’s conduct amounted to a fundamental breach of trust or a complete breakdown in the employment relationship. It is not enough for an employer to be unhappy with performance, attitude, or behaviour. The evidence must clearly show that continued employment was impossible or unreasonable.

Because the result is so harsh—a total loss of pay, benefits, and severance—courts are reluctant to find that just cause exists. Unless the employer meets this demanding threshold, the dismissal will be treated as without cause, requiring full common law notice or pay in lieu. There is no “almost cause.” Either it is proven, or it is not.

Proportionality and Context

Courts assess conduct in context, weighing the seriousness of the alleged misconduct against the employee’s overall record, length of service, performance history, and the level of trust required for the role.

Only the most serious misconduct will justify termination for cause. Most other situations call for progressive discipline first, such as verbal or written warnings and opportunities for improvement. The principle of proportionality applies: the response must fit the conduct.

Procedural Fairness and Investigation

Even where misconduct appears serious, employers must act fairly and objectively. That means conducting a proper investigation, allowing the employee to respond, and documenting the process carefully. A rushed or one-sided investigation can undermine the employer’s position even when the misconduct occurred.

Courts view dismissals as not just legal decisions but human ones. Fairness, respect, and transparency are expected at every stage of the process.

Final Thoughts

If you have been dismissed for cause, do not assume the employer’s decision is final. The threshold for proving cause is so demanding that many claims fail when closely examined. You may still be entitled to full compensation under the law.

For employers, terminating for cause should always be a last resort, supported by clear evidence, sound documentation, and legal advice. Acting without proper process can create significant financial and reputational risk.

At New Wave Lawyers, we help both employees and employers navigate these difficult situations with clarity, fairness, and strategy. Whether you are challenging a cause-based dismissal or managing one, our goal is to help you move forward with confidence and integrity.