KNOWTHE LAW Termination Without Cause Inna Koldorf is a partner at Miller Thomson LLP in Toronto. Her work includes helping employers with managing their workforce, providing advice, representing employers in litigation, and conducting workplace investigations. The views expressed are those of the author and do not necessarily represent the opinions and official policies of CDA It is never easy to have to let go of a valued member of your team. But when this becomes necessary, it’s important to know how to manage the situation with respect and within the parameters of the law. “We are sometimes asked to clarify the differences between terminations with cause and without cause,” says Inna Koldorf. “The most significant difference is notice. When an employee is terminated with cause, they’re not entitled to any notice or compensation by law. And if an employee is terminated without cause, they’re entitled to notice or pay in lieu of notice.” Most terminations, approximately 90%, are without cause. Sometimes a business reorganizes internally and needs to eliminate some roles. Other times, a termination is tied to performance but there isn’t quite enough of a problem to terminate with cause. “I’ve seen situations where people simply don’t get along and so a solution is that one person needs to exit the situation,” says Koldorf. “No one has done anything wrong, but change is needed, thus without cause is appropriate.” 27 Issue 6 | 2024 |
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