Termination for Cause

What is termination for cause?

Termination “for cause” or “just cause” is a way of ending an employment relationship based on the employee committing a wrongdoing that fundamentally breaks the terms of the employment agreement. There are different definitions for what conduct rises to the level of just cause. This depends on whether a legislated or common law standard applies.

Generally, the wrongdoing must be severe enough that the employer believes the employment relationship cannot be repaired. Employers have a significant burden of proof to meet when terminating for cause. They must have sufficient evidence that the employee has done something egregious. Has the employee repeatedly committed a wrongdoing despite several chances to rectify the problem? Was it to the extent that the employer can no longer trust the employee will be able to meet their obligations without further harming the company? Employees terminated for cause are generally not entitled to notice or pay in lieu of notice, with some exceptions. Most jurisdictions explain the circumstances that justify termination for cause in their employment standards legislation.

Get the latest information on terminations from our experts in our blogpost, What Is Termination for Cause?