In Ontario, firing an employee without notice — commonly called termination “for cause” — is one of the most legally risky decisions an employer can make. Courts have described it as the “capital punishment” of employment law. The bar is high, the burden of proof is on the employer, and getting it wrong is expensive. But there are situations where immediate termination is legally justified. Here is what they are.
Before you read on: Even when cause exists, the termination must be proportionate to the misconduct. A single minor mistake rarely justifies dismissal. Courts look at the full context — the employee’s record, the severity of the conduct, and whether warnings were given. Always speak with an employment lawyer before terminating for cause.
Stealing from the employer — whether money, property, or company data — is one of the clearest grounds for immediate dismissal. This includes expense fraud, falsifying timesheets, and pocketing cash from customers.
Example: A manager submits falsified expense reports over several months, claiming reimbursements for meals that never occurred. Courts have consistently upheld termination for cause in such cases, even when the total amounts were relatively small — because the dishonesty itself is the issue, not just the dollar value.
Refusing a direct, lawful instruction from a manager — especially repeatedly — can justify dismissal. The key word is lawful: an employee cannot be fired for refusing an instruction that would require them to do something illegal or unsafe.
Example: An employee is told multiple times to follow a specific safety procedure and openly refuses each time, putting colleagues at risk. After documented warnings go unheeded, termination for cause is likely to be upheld.
Physical assault, sexual harassment, or serious bullying of a colleague or customer can justify immediate termination. Ontario’s Occupational Health and Safety Act (OHSA) requires employers to maintain a workplace free from harassment and violence — and an employee who makes that impossible cannot simply be warned and sent back to work.
Example: An employee makes repeated unwanted sexual comments to a coworker after being told to stop. The employer investigates, confirms the conduct, and terminates. Courts are likely to uphold this — and an employer who does not act may face liability for failing to maintain a safe workplace.
Sharing trade secrets, leaking client data, disclosing proprietary information to a competitor, or selling confidential business information is a fundamental breach of the employment relationship. This type of conduct strikes at the heart of trust — and trust, once broken this way, is rarely recoverable.
Example: A sales employee downloads the company’s full client list before leaving and shares it with a new employer who is a direct competitor. Even without a signed confidentiality agreement, courts have found this to be just cause for dismissal.
Lying to an employer — whether about qualifications during hiring, or about conduct during an investigation — can be grounds for termination. The dishonesty does not have to cause financial harm. The fact that it occurred is enough to destroy the trust required for employment to continue.
Example: An employee claims to have a professional certification on their resume. Years into the job, the employer discovers no such certification exists. Courts have upheld termination for cause in this scenario, particularly in regulated industries where qualifications matter.
An employee who is repeatedly absent without valid reason — and who has been warned in writing that continued absences will result in termination — can be dismissed for cause. However, employers must be careful here. Absences related to a disability or medical condition are protected under the Human Rights Code, and terminating in those circumstances can expose the employer to significant liability.
Example: An employee has been absent 30 days in six months with no medical documentation, despite two written warnings and a formal performance improvement plan. At this point, a court is more likely to uphold a for-cause termination — but only if the employer has documented every step properly.
If an employee engages in criminal behaviour that is connected to their role — such as a bookkeeper who commits fraud, a driver who is charged with impaired driving, or a care worker who mistreats a client — this can justify immediate dismissal. A criminal conviction is not required. The conduct itself is what matters.
Example: A school bus driver is charged with impaired driving while off duty. Because the charge directly relates to their ability to safely perform their job, courts have accepted that the employer had cause to terminate — even before any criminal conviction.
The "culminating incident" rule
Ontario courts also recognise what is known as the “culminating incident” — where a final act of misconduct, when viewed alongside the employee’s full history of performance issues and warnings, tips the balance and justifies termination. In other words, the last incident does not have to be severe on its own if there is a documented pattern behind it. This is why keeping clear, consistent records matters so much.
The bottom line for employers: Termination for cause is not a shortcut to avoid severance. It is a high legal standard that requires strong evidence, proper documentation, and proportionate conduct. If you are considering firing someone for cause, speak with an employment lawyer first. The cost of getting it wrong — in wrongful dismissal damages, legal fees, and reputational harm — almost always exceeds the cost of doing it right.
