Printer Friendly Version                                    Back to Capsules    Discipline and Dismissals Companies must be extremely careful in terminating employee contracts as the courts increasingly consider employees to be vulnerable in their relationship with the firm and offer them protection through the law. As well, the way you treat an employee in a dismissal will go a long way in determining whether the rest of the employees are prepared to give you their full commitment and trust. Dismissals tend to fall into three categories: Business reasons, where the decision is caused by current business conditions; performance and attitude, where an employee may not be performing up to the standards you require or may have a bad attitude towards the job, colleagues, or the company; and just cause, a legal term that covers situations when an employee acts in a way that requires immediate dismissal. Termination with Notice The principle behind termination with notice is that except in a few cases any employee's employment contract may be terminated at any time, as long as sufficient notice is given or financial compensation is provided in lieu of giving proper notice. With notice, the cause for the termination isn't an issue. Unless the employee has an employment contract specifying additional notice he or she must be given, the minimum guidelines in the Employment Standards Act apply (or the federal Labour Code for companies in fields like telecommunications, interprovincial transportation and broadcasting, that fall under federal regulation). Severance pay may also be required. However, it's vital to understand that the Employment Standards Act only provides guidelines and if the courts become involved they will consider how long the employee might reasonably be expected to be looking for work. A "rule of thumb" emerged in the past - approximately one month's notice for every year of employment to a maximum of twenty-four months - but this is just a benchmark, as several other factors are also taken into consideration today. Termination for Cause In a termination for cause, you don't have to provide any notice of termination or payment in lieu of such notice because the conduct of the individual has justified his or her immediate dismissal. However, the courts hold employers to a high standard if asked to rule in these cases and the evidence must be very strongly in your favour. The courts also expect companies to warn employees before dismissal - unless the incident is very extreme - and it is wise to develop a discipline policy with progressively more severe consequences. Practical and Human Factors Once you are sure of your legal grounds for dismissal, you need to deal with the practical and human factors. You need to give careful consideration to the words you will use in explaining the situation to the employee and how you will handle getting the employee off the premises without inflaming colleagues. Increasingly, outplacement counsellors are used in these circumstances. The dismissal itself should take place in a private space. You may want to have a witness. Make sure it's absolutely clear to the employee that he or she is being fired. Employees will have very different reactions, from anger to relief. Some may try to draw you into an argument but don't defend your position. You are there to give a message. Give it - but also be willing to listen dispassionately to what the employee says, or have the outplacement counsellor do that. After the dismissal, you need to inform other employees of the decision, as well as customers and suppliers. You will also have some paperwork to complete, including record of employment, pay, pension and benefits, and perhaps references. Dismissals can be thorny and it's usually advisable to consult with a lawyer. Please Note: This material is provided for general information purposes only, and does not constitute legal advice. If you would like more information or assistance with Discipline and Dismissals, please contact us.