Fired for Cause in Canada: What Just Cause Means

Being fired for cause, also called just cause, means the employer says the employee's misconduct was serious enough to end the job immediately with no notice or pay in lieu. It is the most severe outcome in employment law, and courts set a high bar. The employer must prove the misconduct, and the Supreme Court of Canada held in McKinley v. BC Tel (2001) that the response must be proportional to the conduct, considering all the circumstances. Many for-cause dismissals are challenged successfully, which turns them into without-cause terminations with full notice owed.

This article is part of the guide to employment law in Canada.

The short version

• Just cause means no notice or pay in lieu, so courts require serious misconduct.
• The employer has the burden of proving cause.
• Courts use a contextual, proportional approach, not automatic rules.
• Poor performance usually requires clear warnings and a real chance to improve first.
• In Ontario, losing statutory minimums requires wilful misconduct, a higher bar than common-law cause.
• Being fired for misconduct can affect EI eligibility, so apply anyway and explain the facts.

What Can Amount to Just Cause

Off-duty conduct can sometimes justify discipline if it affects the workplace or the employer's reputation. In 2025, Ontario's Court of Appeal confirmed in Metrolinx v. ATU, Local 1587 that employers may discipline off-duty conduct that manifests in the workplace.

The Contextual Approach

In McKinley v. BC Tel, the Supreme Court rejected the idea that any dishonesty automatically justifies dismissal. Courts consider:

• the nature and seriousness of the misconduct
• whether it was a single incident or a pattern
• the employee's length of service and disciplinary record
• whether the employer gave warnings or used progressive discipline
• the employee's position and level of trust
• whether the employer condoned similar conduct before
• any mitigating circumstances, such as a disability or personal crisis

The question is whether the conduct broke down the employment relationship so badly that dismissal was a proportional response.

Poor Performance

Firing for poor performance without notice is difficult. Employers are generally expected to:

1. set clear expectations
2. warn the employee that their job is at risk
3. give reasonable support and time to improve
4. document the ongoing problem

If these steps were not taken, a court will often find no just cause and award reasonable notice. The employer could still have ended the job without cause by giving proper notice or pay.

Ontario's Two Standards

In Ontario, there are two different tests:

• Common-law just cause removes the right to common-law reasonable notice.
• Employment Standards Act exemption removes the right to statutory termination and severance pay only if the employee was guilty of wilful misconduct, disobedience or wilful neglect of duty that is not trivial and has not been condoned by the employer. Careless or unintentional poor performance generally does not qualify.

So an Ontario employee may have committed enough misconduct to lose common-law notice and still be owed statutory minimums. Ontario's Court of Appeal confirmed this in Render v. ThyssenKrupp Elevator (2022): the employee's conduct was just cause at common law, but because it was spontaneous rather than deliberate, it was not wilful misconduct, so he still received eight weeks of statutory termination pay. Wilful misconduct has been described as "being bad on purpose."

Other provinces have similar rules. In British Columbia, the employer must prove just cause, and poor performance or lateness generally requires warnings first. In Alberta, dismissal for just cause removes the right to statutory termination pay.

What Happens If Cause Is Not Proven

If the employer cannot prove cause, the dismissal is treated as a without-cause termination. The employee is owed the statutory minimums and, unless a valid termination clause applies, common-law reasonable notice. Courts can also award bad faith or moral damages where the employer made unfounded allegations or handled the dismissal unfairly. See wrongful dismissal in Canada.

Being Fired for Cause and EI

EI regular benefits are not available to people dismissed for misconduct as defined under EI law. However, Service Canada makes its own decision, and an employer's claim of cause is not automatically accepted. Employees should apply right away, explain their side clearly, and request a reconsideration if refused. See EI after being fired or laid off.

What to Do After a For-Cause Dismissal

1. Ask for the reasons in writing if they were not provided.
2. Write down your account of events while it is fresh, with dates and names.
3. Gather documents: the contract, performance reviews, warnings, emails and policies.
4. Do not sign anything without advice.
5. Apply for EI immediately.
6. Get legal advice quickly. Many cause cases are negotiated into a without-cause settlement.
7. Watch the deadlines. Federal unjust dismissal complaints must be filed within 90 days, and some provincial complaints within six months.

Frequently Asked Questions

Can I be fired for cause without a warning?

For serious misconduct such as theft or violence, yes. For performance or attendance issues, warnings are usually expected first.

Is one mistake enough for just cause?

Usually not, unless it was very serious. Courts look at the whole context, including service and prior record.

Can my employer change its reasons later?

Employers can rely on misconduct discovered after the dismissal in some circumstances, but changing stories can undermine the employer's credibility.

Will a for-cause dismissal follow me to my next job?

Employers are generally careful about what they say in references, because false or misleading statements can create legal liability. Negotiating an agreed reference or exit message is often part of a settlement.

Fired for cause? Search LawyerDirectoryCanada.ca for employment lawyers by province and city.

Sources

• Your guide to the Employment Standards Act: termination of employment, Government of Ontario
• Compensation for length of service, ESA section 63 interpretation guide, Government of British Columbia
• Termination pay, Government of Alberta
• Ontario Court of Appeal weighs in on the meaning of wilful misconduct, Cassels
• Top Ontario employment law cases of 2025, Miller Thomson
• EI regular benefits: eligibility, Government of Canada
• Wrongful dismissal for federal employees under the Canada Labour Code, Goldblatt Partners