Can off-duty conduct result in a termination for cause?

An employee’s off-duty conduct can result in a termination for cause from their job, but only if their actions impact the company or business they work for, or if the employee is acting as a representative of the company when the misconduct occurs.

A termination for cause, or dismissal for cause, is considered the “capital punishment” of employment law. It is applied to employees who have engaged in such severe workplace misconduct that the employer cannot be expected to employ them any longer. In this case, the employee can be fired by the company without receiving working notice or severance pay in lieu of notice.

A “just cause” situation must take into account many different aspects, including how long the person has been employed by the company, whether they have been disciplined in the past, and the employee’s response to allegations of misconduct.

Termination Without Cause for Off-Duty Conduct and Severance Pay

While an employer can’t terminate an employee “for cause” if the employee’s misconduct occurred outside the workplace, they do have the ability to fire the employee without cause in reaction to the incident.

In fact, a company has the right to let an employee go for any number of reasons, so long as they aren’t discriminatory and in violation of their human rights. When a termination without cause occurs, the employer is legally required to provide the employee with severance pay. Severance pay (also known as termination pay) is based on several factors, including age, length of service, position, employability and benefits. The termination clause in any employment contract may also impact the size of the severance package.

A wrongful dismissal occurs when a company fails to pay a terminated employee an appropriate amount of severance pay or any severance pay at all.

The Story of Kelly Pocha

The story of British Columbia resident Kelly Pocha’s off-duty conduct is an example of an employee being let go for cause when the situation didn’t warrant it.

Pocha lost her job after a video showcasing her racist rant at a Denny’s in Lethbridge, Alberta was shared extensively on social media and media outlets throughout Canada. When the video surfaced and gained attention, her employer – Cranbrook Dodge – terminated her employment.

Eventually the car dealership did hire her back to her old position. There is speculation that when her employer realized that they didn’t have justification to terminate Pocha for cause (without severance pay) and would therefore face a wrongful dismissal lawsuit, they opted instead to reinstate her.