If an employee has performance issues, and the employer is committed to providing the employee with the opportunity to correct poor performance before terminating their employment, the employer should use a performance improvement plan or PIP to identify in writing such performance issues and make a plan to fix them.
I am frequently asked by employer clients to describe what type of conduct by an employee will be held by the courts to qualify as cause for dismissal. Employers are often frustrated by the answer they receive – that it seems that nothing less than stealing money from the company will suffice. In the case of long time employees without prior instances of misconduct, theft may still be insufficient. A recent decision of the Ontario Superior Court has fortunately clarified the circumstances in which courts will find cause for dismissal as a result of dishonesty. What is striking about the decision is the reliance of the judge on a seemingly insignificant act committed by a nineteen year employee.