Legal Definitions - just cause

Just Cause

In employment law, just cause refers to a legitimate, substantial, and non-discriminatory reason for an employer to take disciplinary action against an employee, which can range from a warning or suspension to termination of employment. This concept ensures that employers have a fair and defensible basis for their actions, protecting them from claims of wrongful termination or arbitrary treatment. For an action to be based on just cause, it typically requires that the employee's conduct, capacity, or performance warrants the employer's response, often after due process has been followed.

Here are some examples illustrating the concept of just cause:

• Example 1 (Termination for Misconduct):

  A delivery driver for a logistics company is repeatedly caught on video surveillance using the company vehicle for unauthorized personal errands during work hours, despite having received prior warnings about company vehicle policy violations. The company decides to terminate the driver's employment.

  Explanation: The company has just cause for termination because the driver's repeated and documented misuse of company property for personal gain, after warnings, constitutes a serious breach of company policy and trust. This provides a legitimate and defensible reason for dismissal, unrelated to discrimination or arbitrary decision-making.

• Example 2 (Termination for Performance):

  A financial analyst consistently makes significant errors in client reports, leading to financial losses for the firm and damage to its reputation. Despite receiving extensive additional training, performance improvement plans, and multiple documented warnings over several months, the analyst's performance does not improve to an acceptable standard. The firm ultimately decides to terminate the analyst's employment.

  Explanation: The firm has just cause for termination because the analyst's persistent inability to perform essential job duties accurately, despite opportunities for improvement and documented efforts by the employer, provides a legitimate and substantial reason for dismissal. The termination is based on a clear failure to meet job requirements, not on arbitrary grounds.

• Example 3 (Disciplinary Action Short of Termination):

  An office manager at a small business frequently arrives late to work, causing delays in opening the office and impacting client service. After several verbal warnings and a written warning, the employer implements a one-week unpaid suspension for the manager.

  Explanation: The employer has just cause for the unpaid suspension. The manager's repeated tardiness, despite prior warnings, constitutes a legitimate performance issue that negatively affects the business. The suspension is a reasonable disciplinary action taken to address the misconduct and encourage compliance with work hours, demonstrating a valid reason for the employer's response without resorting to immediate termination.