Termination With Cause in Ontario? Here’s What You Need to Know

Just cause means your employer believes your misconduct was so serious they can fire you immediately without paying severance. It’s the harshest form of termination because you lose your right to notice or severance pay.

Simple definition: Your behavior was bad enough that no reasonable employer should have to keep employing you.

Two Different Standards in Ontario

There are actually two types of “just cause” in Ontario, and they’re not the same:

1. Common Law Just Cause

Your conduct was serious enough to break the employment relationship. If proven, you lose common law severance (could be months of pay).

2. ESA Wilful Misconduct

Your conduct was intentional and premeditated. If proven, you also lose statutory minimums (termination and severance pay).

Key point: Your employer might prove common law cause but still owe you ESA minimums if your conduct wasn’t deliberate. The 2022 Render case confirmed this.

What Counts as Just Cause?

Serious misconduct that usually qualifies:

  • Theft or stealing from the company
  • Lying about credentials or falsifying documents
  • Harassment, violence, or threats
  • Refusing to follow reasonable directions repeatedly
  • Competing with your employer while employed
  • Criminal activity related to your job

What usually DOESN’T count:

  • Poor performance (unless you ignored warnings and had chances to improve)
  • Single minor mistakes
  • Personality conflicts
  • Being late a few times

Why Most "For Cause" Terminations Fail

Ontario courts set a very high bar for just cause. Employers must prove:

  1. The misconduct was serious – Not just annoying or inconvenient
  2. The punishment fits – Termination was proportional to what you did
  3. Progressive discipline was followed – You got warnings first (unless it was theft, violence, etc.)
  4. They have solid evidence – Not just suspicions

Reality check: Most employers who fire someone “for cause” lose in court because they can’t meet this high standard.

Your Rights If Fired for Cause

You Can Challenge It

Just because your employer says they had cause doesn’t make it legal. If they’re wrong, you may be entitled to:

  • Several months of severance pay
  • ESA minimums (termination and severance pay)
  • Additional damages if your employer acted in bad faith

You Might Still Get ESA Minimums

Even if your employer proves common law just cause, you could still get statutory minimums if your conduct wasn’t premeditated.

Your ROE Matters

Being fired for cause shows “misconduct” on your Record of Employment, which can affect EI benefits and future jobs. If the just cause claim fails, you can force your employer to correct it.

What to Do Right Now

1. Don’t Sign Anything

Employers may pressure you to sign documents or resign. Don’t do it without legal advice—you could be giving up rights.

2. Get It in Writing

Ask for written reasons why you were fired and copies of any evidence or warnings.

3. Document Your Side

Write down what happened from your perspective, including any context your employer is ignoring.

4. Call an Employment Lawyer

Most offer free consultations. They’ll tell you if just cause actually exists and what you’re owed.

Act fast: You have limited time to challenge the termination.

Federal Employees: Different Rules

If you work for a bank, airline, telecom, railway, or broadcasting company, you’re federally regulated. You can file an “unjust dismissal” complaint with the Labour Program within 90 days.

If successful, you could get:

  • Your job back
  • Lost wages
  • Compensation instead of reinstatement

Bottom Line

Three things to remember:

  1. Just cause is rare – Most employers who claim it can’t actually prove it
  2. You have rights – Even if fired for cause, you can challenge it and may win severance
  3. Get legal advice immediately – Don’t assume you’re entitled to nothing

Being fired for cause feels like the end, but it’s often just the beginning of getting the compensation you actually deserve.

Fired for cause? Contact us for a free consultation. We’ll tell you straight up whether your employer had legal grounds—and if they didn’t, we’ll fight to get you paid.

Saad Mirza

About the Author

Saad Mirza

Hi! beautiful people. I’m an employment lawyer. I help workers across Ontario stand up for their rights. Hope this blog helped—stick around for more.

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