Termination With Cause Examples: Your Rights in Alberta

Losing a job can be challenging and confusing, especially if your employer claims termination with cause and does not provide notice or severance. Understanding common termination with cause examples and your rights under Alberta law is crucial to assess whether the termination was fair. This knowledge empowers employees to protect themselves and helps employers ensure they meet their legal responsibilities.

This guide explains termination with cause and provides examples to help both employees and employers understand their rights and responsibilities.

What Is Termination With Cause?

Definition and Legal Implications

Termination with cause happens when an employer ends the employment relationship due to serious misconduct or persistent failure to meet key job expectations. The misconduct must be significant enough to justify immediate dismissal, without notice or severance pay.

With Cause vs. Without Cause Termination

• With Cause: The employer must demonstrate serious misconduct, such as:
  • Lying or creating false records.
  • Stealing company property.
  • Bullying, harassment, or abusive behaviours.
  • Neglecting essential tasks or policies.
  • Refusing to follow reasonable instructions.
  • Chronic absenteeism or tardiness.
  • Inability to perform the job despite ongoing support or training.
• Without Cause: An employer can terminate an employee for business reasons, but must provide proper notice or severance.

Why Employers in Alberta Must Provide Evidence for Termination With Cause

In Alberta, an employer does not need to provide notice or severance pay for termination with cause, but they must provide evidence to support their decision. Employers must prove:

• Justification: There must be real misconduct or incompetence, not just dissatisfaction with performance.
• Employee Awareness: The employee must be aware of the expectations and potential consequences of their actions.
• Proper Documentation: Employers must document warnings and misconduct, including dates, times, and outcomes of disciplinary actions.

If in doubt, legal counsel should be consulted before proceeding with termination to ensure compliance with Alberta’s Employment Standards Code.

Termination With Cause Examples

Common Grounds for Just Cause 

Employers must demonstrate that an employee’s actions were severe enough to break the employment agreement without any advance notice or severance pay. Termination with cause examples include:

• Theft or fraud: Taking money, office supplies, or equipment from the company; lying about expenses, hours worked, or creating fake invoices.
• Violence or harassment: Bullying or threatening coworkers or customers; making inappropriate comments or advances.
• Repeated insubordination: Ignoring direct orders or refusing to complete essential tasks, even after repeated warnings.
• Gross incompetence: Unable to meet job expectations despite repeated training and support; making poor decisions that seriously affect the team or company.

Real-World Examples of Termination With Cause

• Conflict of interest 

A sales executive began working with a competitor while still employed at the company. They were found sharing sensitive sales strategies and client information, which harmed the company’s business. Since this behaviour directly conflicted with the company’s interests and violated confidentiality agreements, it resulted in immediate termination with cause, as it compromised the company’s competitive advantage.

• Wilful disobedience

A warehouse worker was repeatedly instructed to follow safety protocols to avoid accidents. After multiple warnings and training sessions, the worker ignored the safety guidelines, leading to a near-miss incident that put themselves and others at risk. The employer, having documented all incidents and warnings, terminated the employee for wilful disobedience, given the potential for harm and the worker’s blatant disregard for company safety standards.

• Undocumented discipline

A senior accounting executive sued his former employer after being fired for poor performance. Although the company said the termination was for just cause, the court found they didn’t have enough proof to support that claim. The employee had performance issues, but he was also given positive feedback, a bonus, and praise during the same time period. The court ruled in favour of the employee, awarding him 18 months’ pay in lieu of notice. The judge made it clear that when an employer makes serious claims about an employee’s behaviour, they need to have clear evidence to back it up, such as written warnings or records of any disciplinary steps taken. 

Key Takeaways

• Employees have rights. If you are fired for cause, ask for the reasons in writing. If you’re unsure whether the termination was fair, consider seeking legal advice.
• Employers must meet a high standard. You need clear, well-documented evidence to support your decision.
• Proper procedures matter. Employers must provide clear warnings, support for improvement, and keep records of any issues before terminating an employee for cause. 

What Is Just Cause for Termination in Alberta?

Legal Threshold for Just Cause

While the Employment Standards Code does not explicitly define just cause, Alberta courts consider the following:

• Severity of the Misconduct: The court will examine how serious the employee’s actions were and whether they fundamentally undermined the trust and relationship between the employee and employer. 
• Warnings and Progressive Discipline: Employers are expected to issue clear warnings and give employees a reasonable opportunity to improve their behaviour before terminating them for cause. Courts will look at whether the employer followed a fair process, such as issuing verbal or written warnings, offering support, and allowing time for improvement.
• Intentional, Reckless, or Repeated Misconduct: Courts will assess whether the employee’s actions were intentional or reckless, and whether the misconduct was repeated despite warnings. 

How Courts in Alberta Assess Claims of Just Cause

When assessing claims of just cause, Alberta courts evaluate whether the employer met the legal threshold for dismissal. Courts consider:

• How serious the employee’s actions were.
• Clear documentation from the employer on what happened. 
• Whether the employer followed a reasonable process, including giving the employee a fair chance to correct their behaviour or performance.

In cases where the employer cannot meet these criteria, the court may rule in favour of the employee, even if the employer believes they had just cause for the termination.

Employee Rights During Termination With Cause

Your Protections Under Alberta Law

You may have legal grounds to challenge the termination with cause in some situations:

• If the employer cannot provide clear documentation, such as warnings or performance reviews, the dismissal may be deemed unfair.
• If the behaviour was a minor issue or isolated mistake, it may not meet the threshold for just cause. 
• If the employer doesn’t follow its own procedures for addressing misconduct, such as failing to issue warnings or offer improvement opportunities, the dismissal may not be justified.
• Termination due to temporary illness or disability may be unjust unless reasonable accommodation has been provided under Alberta’s human rights legislation.
• If termination is due to a personality clash rather than misconduct or performance issues, the dismissal can be challenged.
• If the employer did not clearly communicate job expectations, leading to performance issues, the dismissal may be invalid. Employers must ensure employees understand their duties and the consequences of not meeting them.

How to Respond to Termination for Cause

Steps to Take If You Disagree with the Termination

1. Request a written explanation from your employer for your termination. This will help you understand the employer’s position and assess whether they have valid grounds for termination. It also serves as a record in case you need to take further action.
   
2. Review your employment contract, company policies, and employee handbook (if available) to understand the rules, expectations, and procedures for termination. This will help you assess if the employer followed the proper process.
   
3. Write down your own version of the situation leading to your termination, including any communications you had with your employer.
   
4. Gather evidence that contradicts the employer’s claims, such as emails, messages, performance reviews, or witnesses, and keep them in an organized manner.
   
5. If you feel comfortable, contact your employer to discuss the termination. A calm, professional conversation may help resolve the issue or open the door to a possible settlement.
   

Importance of Obtaining Legal Counsel in Alberta

Consulting with an employment lawyer is crucial for understanding your rights and exploring your options. A lawyer can help you:

• Understand your legal rights: They can help you determine whether your termination meets the legal criteria for just cause, or if you are entitled to notice or severance pay.
  
• Assess the strength of your case: A lawyer will evaluate the evidence, including your employer’s documentation and any potential violations of procedure or policy, and help you understand if you have a strong case for wrongful dismissal.
  
• Negotiate a settlement: A lawyer can assist in negotiating a fair settlement or severance package if you are entitled to compensation. In some cases, you may be able to reach a settlement without going to court, saving time and legal costs.
  
• File a formal claim: If a resolution cannot be reached, and you decide to pursue the matter further, your lawyer can help you file a wrongful dismissal claim with the Alberta Labour Relations Board or take your case to court.

Employer Responsibilities for Just Cause in Alberta

Legal Obligations for Employers to Document Misconduct

1. Maintain clear documentation. This includes keeping records of warnings, performance reviews, and any disciplinary actions taken.
2. Provide written warnings: These warnings should clearly outline the issues, the expected improvements, and the consequences if the behaviour continues. 
3. Ensure fairness and consistency: Employers must ensure that they apply the same standards and procedures to all employees. 

Proper Termination Procedures Required by Alberta Law

1. Alberta law requires that employers follow a fair and transparent process before terminating an employee for cause. This typically involves:
   
   • Giving the employee a chance to respond to allegations or concerns.
   • Providing appropriate support, coaching, or training to address performance issues.
   • Offering the employee a reasonable opportunity to improve their behaviour or performance.

2. Employers must act in good faith when addressing employee misconduct. This means not making hasty decisions or using termination as a first resort. Employers are expected to help their employees improve before choosing to terminate.
   
3. Employers should follow their internal policies when terminating an employee for cause, including the employee handbook or other company guidelines regarding misconduct, performance issues, and termination.

Consequences of Wrongful Dismissal Claims

If an employer does not meet the legal requirements for termination with cause, they may face significant consequences, including:

1. Financial liability: If an employee successfully files a wrongful dismissal claim, the employer may be ordered to pay compensation for lost wages, severance pay, and legal costs.
   
2. Reputational damage: A wrongful dismissal claim can harm an employer’s reputation and relationships with current employees, potential hires, and clients.
   
3. Court orders: In severe cases, the court may order the employer to reinstate the employee to their position.

Why You Should Consult an Employment Lawyer in Alberta

Benefits of Having a Lawyer Review Your Case

1. An experienced lawyer provides expert guidance to help you navigate the complexity of employment law and how it applies to your unique situation.
   
2. Having a lawyer on your side increases the likelihood of a better outcome.
   
3. A lawyer takes the burden off your shoulders, handling the legal aspects of your case so you can focus on moving forward.
   

Common Documents Lawyers Will Assess

When reviewing your case, an employment lawyer will look at several key documents to determine the strength of your claim:

• Your termination letter.
• Your employment contract.
• Your performance record. 

How Cashion Legal Assists Employees in Calgary and Alberta

At Cashion Legal, our team of experienced employment lawyers offers specialized support to employees in Calgary and throughout Alberta. We understand the intricacies of Alberta’s employment laws and are committed to helping you navigate the challenges of wrongful dismissal, employment disputes, and workplace rights violations.

Our lawyers work closely with you to assess your situation, provide legal advice, and represent your interests. We take pride in providing compassionate, effective legal support to ensure you get the best possible outcome.

Book a Consultation Today

If you’re facing an unjust termination or have questions about your rights, book a consultation today to review your case. Don’t navigate your employment dispute alone—our team is here to help you.

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