What are the reasons for termination with cause?

There are many reasons to fire an employee, some of which don’t require notice or severance. If the employee challenges the dismissal, detailed documentation of incidents or behaviours and proof of progressive discipline may be required. Below are the most common justifications for termination with cause:

1. Incompetence

Employee incompetence means lacking the abilities, skills, or knowledge to perform the job to the expected standards. Incompetence can be evident in many ways, including poor work quality, inability to meet deadlines, frequent mistakes, and lack of understanding of the job. It can also be due to a lack of training, a mismatch between the employee’s skills and the job requirements, or personal issues that affect job performance.

For example, a manager might ask an employee who consistently struggles to complete their daily tasks if they need extra training or help with organizational or time management skills. Still, the employee refuses assistance or fails to improve despite being helped. Lack of competence is typically grounds for termination if there’s still no improvement after multiple discussions and verbal and written warnings.

2. Attendance

Regular attendance and punctuality contribute to workplace efficiency and productivity. Being late or missing work repeatedly can disrupt scheduled tasks, meetings, and projects, causing inefficiency, inconvenience, and increased potential for error, as others must cover for an absent employee. Absenteeism can cause stress and decreased job satisfaction among colleagues. In customer-facing roles, attendance issues can directly impact service quality and customer peace of mind. Before firing an employee for attendance issues, you might consider the following:

• Documented policies: Have clear policies on attendance and punctuality, including guidelines for acceptable reasons for absences or lateness and the process for notifying supervisors.
• Initial warnings: When attendance issues arise, consider giving verbal or informal written feedback to inform the employee of the need to improve.
• Formal written warnings: If the problem continues, issue formal written warnings and document them in the employee’s file, clearly outlining the consequences of continued absenteeism or lateness.
• Performance plans: Another option is to create a progressive discipline plan for the employee, setting goals and timelines to support improvement.
• Final warnings and documentation: Issue a final warning, emphasizing the severe risk of termination if attendance issues continue.
• Termination: If, despite the above-documented efforts, the employee’s attendance doesn’t improve, termination may be necessary.

3. Disrespect and insubordination

Disrespect refers to inappropriate, degrading, or rude behaviour towards supervisors, colleagues, or customers. This can include verbal abuse, disruption, or other unprofessional behaviour. Insubordination involves an employee refusing to follow reasonable and lawful instructions from a supervisor or manager. It’s a disregard for authority and can manifest in many ways, such as defying orders and ignoring or refusing to do tasks. It can negatively impact your business, affecting:

• Operational downtime: When an employee doesn’t follow instructions, it can delay projects, reduce productivity, and confuse other team members.
• Authority: Insubordination and disrespect can weaken the authority of supervisors and managers, break the chain of command, and make it hard to maintain order and discipline in the workplace.
• Morale: When employees see insubordination or disrespect go unaddressed, it can lead to frustration, demotivation, and a toxic work environment.

Before you may find just cause for termination, ensure you apply your policies fairly and consistently to all employees to avoid discrimination or unfair treatment claims. Proper documentation of incidents, warnings, and actions can protect your company from legal disputes post-termination.

4. Harassment

Harassment can be unwanted, discriminatory behaviour that creates an intimidating, hostile or offensive work environment. It can take many forms based on age, religion, race, gender, sexual orientation, or disability. Some examples include:

• Verbal: Includes derogatory comments, slurs, jokes, or threats.
• Physical: Unwanted physical contact, assault, or intimidating gestures.
• Visual: Offensive posters, cartoons, e-mails, or other visual materials.
• Sexual: Including requests for favours, unwelcome advances, and other physical behaviour of a sexual nature.

To address harassment, companies typically have clear anti-harassment policies, confidential reporting mechanisms and prompt investigations. Based on the findings, employers can take action from warnings to termination. Proper documentation can promote transparency and compliance with provincial/territorial and federal laws, fair treatment of accused employees, and protection from retaliation for employees who report harassment.

5. Dishonesty

Dishonesty at work can take several forms, including:

• Fraud: Intentional deception for personal gain, including falsifying records, expense claims, or financial statements.
• Breach of trust: Violating trust, such as disclosing confidential information, using privileged access or accepting bribes.
• Theft: Theft means taking company property, assets, or time without permission, such as office supplies, equipment, cash, or unworked hours.
• Misrepresentation: Knowingly providing false or misleading information about qualifications, work experience, or performance metrics.

The impact on your business can be minor or significant, as can the consequences for the accused employee. Theft and fraud can cause direct financial losses, affecting profitability and viability. Breaching trust and misrepresenting facts can also damage your company’s reputation, diminishing customer trust and investor confidence. Depending on the seriousness, dishonesty can lead to legal action, including fines or lawsuits against your business and the employee.

Dishonesty is a reason for termination as long as you treat the accused fairly, give them a chance to defend themselves, and ensure that all actions comply with employment laws and regulations.

6. Violence

Violence in the workplace is a serious issue that can result in the immediate termination of an employee due to the severity of the risk to safety, legal compliance, and company reputation. It can be physical aggression, threats, or intimidating behaviour towards colleagues, supervisors, or clients. This can include fighting, pushing, verbal threats, or harassment, creating a hostile work environment. The presence or use of unauthorized weapons can make the situation even more severe. Employers in Canada have a legal obligation to provide a safe work environment under Occupational Health and Safety regulations. Workplace violence can put employees at risk and expose the company to legal liabilities, fines, or lawsuits.

Termination can occur due to workplace violence if deemed appropriate after following an investigation and disciplinary procedure, which typically includes the following steps:

• Immediate action: Upon discovering or being told of workplace violence, employers should act quickly to ensure employee safety and prevent further harm. This may involve separating the parties involved and securing the premises.
• Investigate: A thorough investigation typically involves gathering facts, interviewing witnesses and reviewing evidence. It can determine the severity of the incident and the impact on workplace safety.
• Disciplinary action: Based on the investigation findings, disciplinary action can range from warnings and training to suspension and termination of the employee responsible for the violence.
• Document: Thorough documentation of incidents, investigations and actions throughout the process should be made in case of a legal dispute.

7. Substance abuse

Substance abuse in the workplace often refers to coming to work under the influence or the misuse of alcohol or drugs during working hours. This behaviour can severely impair an employee’s ability to perform their job safely and effectively, leading to negative consequences, such as:

• Safety risks: Employees pose a significant risk to themselves and others when under the influence of drugs or alcohol, especially in environments that require operating machinery, driving or handling hazardous materials.
• Workplace accidents: The likelihood of workplace accidents can increase, resulting in possible injuries, fatalities, and damage to company property.
• Legal and financial consequences: Companies may face legal liabilities, higher insurance costs, and damage to their reputation due to incidents involving substance abuse.

Organizations frequently have clear substance abuse policies detailing prohibited behaviours, testing procedures, and consequences communicated during onboarding. You can reinforce them regularly by implementing drug and alcohol testing, particularly in safety-sensitive roles. This thorough investigation can help detect abuse following suspicion.

Understanding employee termination with cause can help keep your company legally compliant and avoid disputes. Some common reasons include incompetence, attendance issues, harassment, substance abuse, dishonesty, and workplace violence. Clear policies and thorough documentation ensure fair procedures, protect organizations, and maintain a safe, efficient workplace.