In Alberta employment law, maintaining standards for employee behaviour and performance is crucial to ensure organizational function. Employers often grapple with complexities arising from employment agreements, particularly when it comes to justifiable dismissal “for cause.” Just cause termination is a legal term that refers to the dismissal of an employee for a serious misconduct or breach of contract that justifies immediate termination without notice or severance pay. In Alberta, as is the case in most jurisdictions, the onus is on the employer to prove just cause.

This blog will provide an overview on just cause terminations in Alberta, explaining what type of conduct constitutes “just cause”, exploring the progressive discipline process, and providing practice tips for employers and employees regarding “just cause” terminations and wrongful dismissal claims.

What Constitutes “Just Cause” Termination in Alberta?

Determining whether just cause exists is often complex and depends on the specific circumstances of each case. However, some common examples of conduct that may warrant just cause termination include:

  • Serious misconduct such as dishonesty, theft, fraud, or violence;
  • Willful disobedience;
  • Gross negligence;
  • Repeated misconduct or disregard for the employer’s policies;
  • Engaging in competition with the employer’s business;
  • A breach of confidential information;
  • Intoxication or drug use in the workplace; and
  • Criminal activity that harms the employer’s reputation or is related to employment.

Terminating an employee for just cause prevents the employee from receiving any amount of termination pay under the Employment Standards Code. The terminated employee is also not entitled to receive any amount of additional severance pay at common law and the employee will not be able to collect unemployment benefits.

The Progressive Discipline Process in the Workplace

Progressive discipline is a corrective process that is used by employers to address an employee’s misconduct or unsatisfactory performance before resorting to termination. This process involves a graduated series of steps that clearly communicate performance expectations and offer opportunities for improvement. The progressive discipline process will vary depending on employer policies and the severity of the infraction or conduct and serious cases may require immediate termination.

There are generally four key stages, including:

  1. Verbal warning: A formal discussion with the employee about the problem behavior.
  2. Written warning: A documented warning outlining the issue and the expected consequences of repeated misconduct. This evidentiary record will also assist an employer in the event of a wrongful dismissal claim.
  3. Suspension: An employee may be temporarily removed from their position.
  4. Termination: If the employee’s misconduct or performance is not addressed, the employer may decide to terminate the employee.

It is also crucial to note that the employer’s progressive discipline policy must be applied uniformly and consistently to all members of an employer’s workforce. This can help the overall workplace environment, as employees benefit from opportunities to improve their performance and are aware of the potential consequences of non-compliance, while employers are more likely to have a well-functioning workforce.

Proving “Just Cause”

From a legal standpoint, progressive discipline is key in an employer’s justification for “just cause.” A court may consider:

  • The clarity of communication from the employer to the employee and whether the employer’s expectations and potential consequences of non-compliance have been communicated effectively;
  • The reasonableness of the employer’s expectations of the employee;
  • Whether the employer afforded the employee a fair chance to rectify their behaviour or performance; and
  • Whether the employer’s progressive discipline policy is applied equally to all employees or whether there was discrimination in its application towards the employee.

However, it is difficult for an employer to establish that it had justification to terminate an employee for cause as it requires the employer to provide substantial evidence regarding the employee’s performance issues and misconduct over a period of time. The employer must also show that the termination was a proportional response to the misconduct or issue in question.

Potential Consequences of Wrongful Dismissal

If an employer cannot prove that it had just cause to justify an employee’s termination, the employee may be entitled to wrongful dismissal damages, such as:

  • Reasonable notice or pay in lieu of notice: This refers to financial compensation for the period of notice the employee would have been entitled to if the termination had been without cause.
  • Severance pay: Additional compensation based on factors such as the employee’s length of service and salary.
  • Moral damages: Compensation for pain, suffering, and humiliation caused by the termination.
  • Aggravated damages: Compensation for malicious or high-handed conduct by the employer.

Key Takeaways for Employees and Employers

Just cause termination is a complex area of employment law and if a “just cause” termination is wrongly classified, an employee may have a claim for wrongful dismissal, which can result in financial consequences for the employer. As such, employers must carefully consider the evidence and follow proper procedures to avoid potential legal challenges down the road. They should develop and implement clear and consistent workplace policies and, in the event of an incident, should clearly document all disciplinary actions and performance issues and follow a progressive discipline process whenever possible. In any event, the employer should seek legal advice before terminating an employee to mitigate any issues or disputes alleging wrongful dismissal.

Employees should also be aware of their rights and seek legal advice if they believe they have been wrongfully terminated or have questions about the circumstances surrounding their termination.

Contact the Employment Lawyers at Getz Collins in Calgary and Strathmore for Advice on Employee Terminations

The trusted and experienced team of labour and employment lawyers at Getz Collins and Associates represent employers and employees and help clients resolve a myriad of employment law issues, such as wrongful termination, employment contract matters and employment standards issues. To schedule a consultation with one of our employment lawyers in Calgary and Strathmore, reach out to us online or call our office at (587) 391-5600.