What factors will the court consider in determining just cause for the dismissal of an employee?

Ontario, Canada


The following excerpt is from Katz v Things Remembered Canada Inc., 2018 CanLII 44839 (ON SCSM):

In assessing if just cause exists the court should consider; failure to motivate staff; decreased morale; decreased productivity; and failure to control emotions in stressful situations. It is not necessary to find gross incompetence provided the evidence discloses that the employee received prior warnings advising that their performance was unsatisfactory. This was discussed in Perkins v. Canadian Diners (1995) Ltd. Partnership, [1997] O.J. No. 5944. The court stated at paragraph 4 as follows: Before considering those grounds, I shall comment on the evidence of the plaintiff's shortcomings in order to set the tone for the termination interview. From the beginning, the plaintiff had problems completing the daily sales and cash reports and needed the assistance of the assistant managers in order to get it right. There were also problems with cash shortages, although no blame was attributed to her in that regard by her employer. Other factors related to performance included grumpiness, failure to motivate staff, decreased morale, decreased productivity, and failure to control her emotions in stressful situations. The latter trait adversely affected staff and they tended not to give her respect. This in turn adversely affected the employer/employee relationship. The plaintiff failed to manage the Vaughan Mills store in an acceptable manner. The defendant was justified in dismissing her for just cause subject to the requirement to provide a sufficient warning.

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