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Can You Be Fired for Poor Performance in Alberta? Termination for Cause Explained
If your employer has told you that you are not meeting expectations and your job may be at risk, you are likely wondering what is just cause for termination in Alberta and whether they can terminate your employment for poor performance.
This is an important question. Many employees assume that if an employer believes they are underperforming, the employer can simply terminate them for cause and avoid paying severance.
In Alberta, that is usually not the case.
This article explains when an employer can terminate employment for cause due to performance concerns, when they cannot, and what you should do if your employer is threatening termination for performance-related reasons.
Learn more about how we help termination with cause cases in Alberta or book your consultation to speak to a lawyer at Cashion Legal.
What is Just Cause for Termination in Alberta?
Before discussing performance issues, it is important to understand the difference between termination for cause and termination without cause.
A termination for cause means the employer ends your employment and does not provide severance. This is the most serious type of termination. The legal threshold is high, and employers must meet a strict standard to justify it.
A termination without cause means the employer provides you with notice of termination or pay in lieu of notice, commonly referred to as severance.
In Alberta, an employer generally does not need to provide a reason for a without-cause termination. They may decide you are not the right fit for the organization or simply choose to move in a different direction. As long as proper notice or severance is provided, the employer is usually not required to justify the decision.
Because severance is paid in a without-cause termination, the employer does not need to prove serious misconduct or incompetence on behalf of the employee.
Can an Employer Terminate for Cause Due to Poor Performance?
If your employer is attempting to terminate you for cause based on performance concerns, the legal analysis changes significantly.
Performance issues alone rarely justify termination for cause unless they rise to the level of legal incompetence.
Incompetence is not the same as making mistakes, missing a target, struggling during a busy period, failing to meet quotas, or being considered a poor fit. It refers to a serious and ongoing inability to perform the essential duties of your role.
Termination for Cause: What Must an Employer Prove?
To establish incompetence in termination for cause in Alberta, employers typically must satisfy four key requirements:
1. The Standard Must Be Objective and Reasonable
The employer must rely on objective and reasonable performance standards. Vague or subjective concerns are not enough. There must be a clear standard that applies to the role and that has been communicated to the employee.
2. The Employee Must Have Failed to Meet That Standard
The employer must provide evidence that the employee did not meet the established standard. This requires objective proof, not general dissatisfaction or opinion.
3. The Employee Must Have Been Clearly Warned
In most cases, the employee must be warned that their performance is below standard and that improvement is required. The warning must make it clear that continued failure to improve could result in termination.
Courts generally expect the warning to be specific enough that the employee understands their job is at risk.
4. The Employee Must Be Given a Genuine Opportunity to Improve
After a warning is issued, the employer must give the employee a real opportunity to improve. This typically requires a reasonable period of time and appropriate support.
If an employer warns an employee and then terminates them shortly afterward without giving them a fair chance to correct the issue, it will be difficult to justify termination for cause.
Example: O’Driscoll v Suncor Energy Inc., 2026 ABKB 43
The recent decision in O’Driscoll v Suncor Energy Inc., 2026 ABKB 43 illustrates how these principles are applied. The court found that the evidence relied upon was insufficient and flawed, and the employer failed to preserve critical evidence which could have supported or refuted the alleged performance issues. Crucially, the Court found no evidence about the standards the employer was attempting to rely on to justify termination for cause.
Additional Factors Courts Consider in Termination for Cause Cases
Even if those four requirements are addressed, courts often examine additional factors.
Training and Support
If an employee received inadequate training, this may undermine the employer’s claim of incompetence. This is especially relevant when an employee has moved into a new position or taken on new responsibilities. Employers are expected to provide appropriate support when expectations change.
Length of Employment
Long-term employees are often given greater leeway. The longer an employee has worked for an organization, the more courts expect employers to provide clear warnings, reasonable timelines, and meaningful opportunities to improve before terminating for cause.
Consistency in Messaging
Courts also look at whether the employer’s communications were consistent. If past performance reviews were positive, if the employee received praise, bonuses, or raises, or if messaging was mixed, it may be difficult for the employer to establish that the employee understood their job was in jeopardy.
Reviewing prior performance evaluations can be critical in assessing whether a termination for cause can be justified.
What If Performance Issues Are Related to Health?
If performance concerns are connected to a genuine health issue and the employer knew or ought to have known about that issue, the legal analysis changes.
Employees may be protected under the Alberta Human Rights Act. Employers have a duty to accommodate employees with medical conditions up to the point of undue hardship.
Accommodation may include modifying duties, adjusting schedules, providing medical leave, or exploring alternative roles.
If an employer fails to meet this obligation and terminates employment instead, the termination may breach human rights legislation.
Can a Single Mistake Justify Termination for Cause?
In most circumstances, a single mistake does not justify termination for cause.
There are exceptions. If the mistake involves a clear and essential job requirement and creates significant risk, such as a serious safety breach or substantial financial exposure, an employer may be able to rely on a single incident. Even in those cases, the legal threshold remains high.
One recent Alberta court case is illustrative. In this case, the Court found that a single mistake warranted termination for cause because of the severity of the incident, noting the potential for catastrophic consequences, including harm to individuals and significant reputational damage to the employer. The incident also resulted in the loss of a major customer and industry-wide embarrassment for the employer. This case represented the rare example where an employer was justified in terminating for cause based on a single incident.
What Should You Do If Your Employer Raises Performance Concerns?
If your employer indicates that your performance is under review or that termination is being considered, it is important to respond carefully.
1. Seek Legal Advice Early
It is rarely too early to obtain legal advice. Early guidance can help you understand your position and avoid steps that could weaken your case later.
2. Ask for Specifics in Writing
Request that your employer clearly outline the performance concerns in writing. Ask what specific standards they believe you are not meeting and what is expected of you going forward.
Clear documentation is important. Vague concerns are difficult to assess and respond to effectively.
3. Respond Professionally
If you disagree with the concerns or believe the expectations are unreasonable, communicate your position clearly and professionally in writing. Maintaining professionalism is essential, even in stressful circumstances.
4. Obtain Advice If Standards Are Unclear or Unreasonable
If you and your employer cannot agree on objective performance standards, or if you believe you are being positioned for termination, it is advisable to seek legal guidance.
A lawyer can help you assess whether the employer is meeting the legal requirements for cause and whether severance may be owed if termination occurs.
Final Thoughts
Termination for cause in Alberta based on poor performance is difficult for employers to justify. The legal standard is high, and courts require clear evidence of ongoing incompetence, proper warnings, and a meaningful opportunity to improve.
If you are facing performance-related concerns and are unsure of your rights, the employment lawyers at Cashion Legal can help. We provide clear advice, practical strategies, and strong representation for employees across Alberta. To book a consultation, visit our website and contact our office.