Morison v Ergo-Industrial Seating Systems Inc.

Just cause termination: Employers need “reasonable basis”

November 30, 2016 Stringer LLP Employee Relations, Employment/Labour Standards, HR Policies and Procedures, Human Resources, Notice, Damages and Settlements, Payroll, Pensions and Benefits, Source Deductions and Reporting, Wages and Compensation

The Court acknowledged that an employer may allege just cause, and later abandon that claim at any time. The Court held that it wouldn’t be appropriate to penalize an employer for changing its mind if it initially had a reasonable basis to believe it had just cause to terminate an employee. As such, it is important to investigate and document any evidence of employee misconduct, and to act accordingly.

aggravated damages, bad faith, damages, employment law, Honda v. Keays, just cause, Morison v Ergo-Industrial Seating Systems Inc., punitive damages, termination, wrongful dismissal