When an employee is injured on the job and receives Workplace Safety and Insurance Act (WSIB) benefits, standard termination protocols do not apply. Under the Workplace Safety and Insurance Act, employers have legal obligations they must meet, or else they risk being left vulnerable to lawsuits and wrongful dismissal claims. It is critical for organizations to conduct any termination fairly and with proper documentation, yet this is doubly true when employers are terminating an injured employee.
In Canada, there are numerous federal labour standards that dictate requirements surrounding terminations and dismissals. As a result, employers must follow protocols or face financial, reputational, and legal consequences that come with wrongful dismissals.
Understanding Wrongful Dismissal
Wrongful dismissal occurs when an employer fires an employee without providing proper notice or severance pay, as required by law. In Canada, most terminations are without cause, meaning the employer must follow employment standards or common law notice periods. Even short-term employees may be entitled to compensation if terminated improperly.
Wrongful Dismissal vs. Just Cause
Just cause applies in cases of serious misconduct, such as repeated negligence, insubordination, or workplace violations. Without clear evidence and progressive discipline, a termination for just cause may still be considered wrongful. Employees who believe they were wrongfully dismissed may pursue legal action for compensation.
Best Practices for Legally Sound Terminations
1. Have a Clear Employment Agreement
A well-defined employment contract helps prevent disputes over termination. If an employee is hired for a temporary or seasonal position, this should be clearly outlined in the agreement, along with the expected end date or conditions for termination. Employers should communicate this in writing to avoid potential claims of wrongful dismissal or reputational damage.
2. Follow Proper Notice & Severance Rules
In Canada, employers must provide reasonable notice or severance pay when terminating an employee without cause, ensuring compliance with employment standards legislation. Severance pay obligations vary by province but generally depend on factors such as the employee’s:
- Length of service
- Role
- Total compensation package
Under common law, courts may award additional compensation beyond statutory minimums, considering factors like the employee’s age, job level, and ability to find new employment. Even temporary or seasonal employees may be entitled to notice or severance if their contract does not explicitly state a fixed end date or if they were led to believe their role was ongoing.
3. Document Performance Issues & Misconduct
Employers should document all disciplinary actions, including warnings for misconduct or negligence. This ensures employees understand performance expectations and have an opportunity to improve. Written warnings carry more legal weight than verbal ones, so employers should provide clear, documented feedback before considering termination.
If an employee disputes their termination, documented warnings serve as evidence in legal proceedings. Employers must also ensure they do not terminate employees for prohibited reasons, such as:
- Requesting overtime pay
- Pregnancy or parental leave
- Disability or age discrimination
- Filing a harassment complaint
Progressive discipline also strengthens a just cause termination case by demonstrating that the employer provided fair opportunities for improvement before dismissal.
4. Conduct Termination Meetings Professionally
Termination meetings are not instances to be taken lightly. While there may be just cause, the shock of the news can negatively impact the employee’s emotions. It’s important to come prepared and ensure details regarding the termination are clear. Here are some best practices to ensure the meeting proceeds smoothly:
- Meet in Private: Avoid sharing the news in a public or communal space. Schedule an invitation to a private office or boardroom with a door. If the termination is being carried out remotely, ensure the camera is on to enhance professionalism.
- Prepare Beforehand: There may be a few points you want to touch on to prevent the employee from assuming wrongful dismissal. Having a script ready ensures all relevant information is relayed to the employee and can help prevent negotiation or arguments.
- Show Empathy: Being terminated often brings serious emotions to the surface. Where possible, ensure the employee has time to process the information and clear out their belongings while saying goodbye to fellow staff.
When to Seek Legal Advice
Having an employment lawyer review the termination paperwork or simply connecting with them regarding a possible termination can be helpful. Wrongful dismissal cases, as mentioned, can have financial and reputational consequences. To ensure the business is accurately protected against legal action, here is how lawyers can help:
- Compile and organize any records involving warnings
- Identify the relevant laws and apply them to the situation.
- Explain relevant regulations depending on the organization and industry
Mitigating Legal Risks
Managers and HR professionals must stay up to date on employment laws to reduce the risk of legal disputes. This includes understanding wrongful dismissal claims, ensuring employment agreements are clear, and adhering to legal requirements for severance, notice, and record-keeping. A well-documented and legally sound termination process protects both the employer and the employee.
Prevention is key—proactively following proper procedures minimizes the chances of wrongful dismissal claims. By staying informed and implementing best practices, employers can maintain compliance, protect their organization’s reputation, and foster a fair workplace.
