Termination for cause: Traveling during COVID-19

As news that hospital CEO Paul Woods was terminated for travelling during the pandemic, many Canadians are asking what is considered grounds for termination for cause. Does the position an employee holds matter? What should the consequences be for breaking health and safety guidelines during COVID-19?

A Toronto employment lawyer and associate at Samfiru Tumarkin LLP joined Devon Peacock on 980 CFPL to answer questions on the consequences of travelling during the pandemic.

What They Discussed

What are the chances Dr. Woods will be entitled to a buyout?

Whether or not Dr. Woods is entitled to severance will depend on if the termination is for cause or not. It is very difficult to prove a for-cause termination in Ontario and so Woods will probably be entitled to severance.

How do severance entitlements or buyouts work?

Generally, employment agreements can contain language that will state what an employee is entitled to upon termination; a termination clause. If an employee is terminated without cause they are usually entitled to the full amount of compensation unless there is a limitation they consented to in the contract.

If an employee finds a new position, is it normal for the severance compensation given previously to stop?

Many employment agreements include the stipulation that if an employee finds new employment they are obligated to inform their former employer and compensation will stop. The purpose of severance is to bridge the gap for employees when they are unemployed and looking for new employment.

Are employment contracts more specific depending on the role i.e. the more senior a position?

As there are fewer positions at senior management levels, there is considerably higher at stake in terms of severance. New positions of employment for executives would have to be comparable to their previous compensation.

Is it common for senior management not to receive compensation after termination?

It is very uncommon for a for-cause termination as the conduct exhibited by an employee has to be severe and very specifically outlined by the employer.