Calgary Just Cause Dismissal Lawyers for Alberta Employers

Just cause dismissal is one of the most serious decisions an Alberta employer can make. Also called summary dismissal or termination for cause, it allows an employer to end employment without providing notice or pay in lieu of notice.

Because the financial and legal consequences can be significant, employers should not assume that misconduct automatically justifies a just cause dismissal. The decision depends on the particular employee, the workplace, the alleged conduct, the employer’s policies, and the steps taken before termination.

What Is Just Cause for Dismissal?

Just cause arises where an employee’s misconduct is sufficiently serious that the employment relationship cannot reasonably continue. The central question is whether the misconduct has damaged the trust, confidence, or other essential foundation of the relationship to the point that dismissal without notice is justified. Just cause may be established from a single serious act of employee misconduct or may be established over time due to several minor acts of misconduct or habitual performance issues and through a process of progressive discipline.  

A just cause dismissal is exceptional and highly fact-specific. An employer bears the burden of establishing that just cause existed.

What Is the Difference Between Dismissal With Cause and Without Cause?

Alberta employers generally have the right to end an employment relationship without cause, subject to the employee’s contractual, statutory, and common-law termination entitlements.

A without-cause dismissal ordinarily requires working notice or pay in lieu of notice. That notice provides the employee with a financial bridge while they seek other employment.

A just cause dismissal, by contrast, may eliminate the employee’s entitlement to notice or pay in lieu of notice. For that reason, employers must be able to prove both the misconduct and that dismissal was a proportionate response.

How Do Alberta Courts Decide Whether Just Cause Exists?

Courts apply a proportional and contextual approach. They assess the nature and seriousness of the conduct in the full factual context and determine whether continued employment was no longer viable.

Relevant considerations may include:

• The employee’s role, seniority, and length of service;
• The employee’s duties and level of responsibility;
• The employer’s reasonable expectations and workplace policies;
• Whether the policy was clear, accessible, and consistently applied;
• Whether the employee received warnings, coaching, or prior discipline;
• Whether the conduct was an isolated incident or part of a pattern;
• The impact, or potential impact, on the employer’s business, clients, safety, or reputation;
• Whether the employee accepted responsibility or took corrective action; and
• Whether termination was proportionate to the misconduct.

A strong investigation and reliable documentation are often critical to the employer’s case. Employers should avoid reaching a conclusion before the relevant facts have been gathered and assessed.

Common Examples of Conduct That May Lead to a Just Cause Dismissal

The circumstances that may support termination for cause vary widely. The following examples may raise serious concerns, but none automatically establishes just cause in every case:

• Theft of company property or time theft;
• Dishonesty or fraud;
• Serious breaches of confidentiality;
• Conflicts of interest;
• Workplace violence, assault, sexual assault, or harassment;
• Serious insubordination;
• Repeated misconduct after clear warnings;
• Habitual neglect of duties or serious incompetence;
• Breaches of health and safety requirements; and
• Serious breaches of workplace policies.

The same type of conduct can produce different results depending on the facts. For example, theft, dishonesty, or a breach of policy may be serious enough to justify dismissal in one workplace situation but not in another. The employee’s position, the surrounding circumstances, the employer’s prior response to similar conduct, and the evidence available all matter.

Is Progressive Discipline Required Before Dismissal for Cause?

Not always. A single serious incident may justify a just cause dismissal where it fundamentally undermines the employment relationship.

In many other situations, progressive discipline is important. Performance concerns, attendance issues, less serious misconduct, or policy breaches may require clear expectations, warnings, an opportunity to improve, and documentation before termination for cause can be justified.

Employers should not assume that a history of concerns is sufficient on its own. The record should show that the employee understood the concern, the expected standard, and the potential consequences of failing to improve.

Why a Fair Investigation Matters

Before terminating an employee for just cause, an employer should carefully investigate the alleged misconduct. The appropriate scope of the investigation will depend on the circumstances and the seriousness, but employers should generally consider whether they have:

• Identified the allegations clearly;
• Preserved relevant documents, electronic records, and other evidence;
• Spoken with appropriate witnesses;
• Given the employee a meaningful opportunity to respond;
• Considered relevant explanations, mitigating circumstances, and prior discipline;
• Applied workplace policies consistently; and
• Documented the decision-making process.

A rushed or incomplete process can make it harder to establish just cause and may increase the risk of a wrongful dismissal claim.

Risks of Alleging Just Cause Without Sufficient Evidence

An employer that alleges just cause but cannot establish it may face liability for the employee’s notice entitlement or pay in lieu of notice. Depending on the circumstances, the dispute may also involve claims for additional damages arising from the manner of dismissal.

The decision to dismiss for cause can affect an employee’s income, reputation, benefits, incentive compensation, and future employment prospects. This decsion should be made carefully and only after the employer has considered the available evidence and the proportionality of the proposed response.

What Should Alberta Employers Do Before Terminating an Employee for Cause?

Before proceeding with a just cause dismissal, employers should consider the following steps:

1. Review the employment agreement and policies. Determine whether the agreement, workplace policies, and prior communications address the employee’s obligations and potential disciplinary consequences.
2. Investigate the allegations. Gather and preserve the relevant facts before making a final decision.
3. Assess the employee’s history. Consider the employee’s role, length of service, prior discipline, and any mitigating information.
4. Consider proportionality. Determine whether dismissal is a reasonable response or whether other corrective action is appropriate.
5. Document the decision. Maintain a clear record of the allegations, investigation, findings, and reasons for the outcome.
6. Obtain legal advice. A review before dismissal can help employers assess risk and avoid an avoidable wrongful-dismissal dispute.

Advice for Employees Dismissed for Just Cause

Employees who are dismissed for cause should obtain legal advice promptly. An employer’s allegation of just cause does not necessarily mean the allegation will be proven.

The outcome depends on the specific facts, including the employee’s conduct, the employer’s policies, the investigation, any warnings or discipline, and whether dismissal without notice was a proportionate response.

Getz Collins and Associates: Advice on Just Cause Dismissals in Alberta

A decision to terminate an employee for cause should be approached with care. The employment lawyers at Getz Collins and Associates advise Alberta employers on workplace investigations, progressive discipline, termination decisions, and just cause dismissal issues.

We can assist employers with:

• Assessing whether alleged misconduct may support just cause;
• Planning and conducting workplace investigations;
• Reviewing and updating workplace policies and disciplinary records;
• Responding to concerns involving dishonesty, confidentiality, conflicts of interest, harassment, safety, or insubordination;
• Preparing termination documentation; and
• Managing wrongful dismissal claims after termination.

From our Calgary office, Getz Collins and Associates advises employers throughout Alberta, including Calgary, Airdrie, Cochrane, Okotoks, Drumheller, Chestermere, Hussar, and surrounding communities.

If your organization is considering a just cause dismissal or responding to an employee’s claim, call 587-391-5600 or contact us online to schedule a consultation with an Alberta employment lawyer.