After-acquired cause happens when an employer fires an employee and later discovers serious misconduct that took place before the termination.

The employer may then argue that the newly discovered misconduct would have justified a termination for cause — potentially affecting the employee’s right to severance.

But simply discovering a workplace issue after someone has been fired does not automatically eliminate their rights. The employer still has to prove that the misconduct was serious enough to justify dismissal for cause.

⚠️ Your employer says it found “cause” after firing you? Do not assume that means you have lost your severance. After-acquired cause is a high legal threshold, and the employer still has to prove its case.

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What Is After-Acquired Cause?

After-acquired cause allows an employer to rely on serious misconduct that it discovers after an employee has already been terminated.

The key point is that the alleged misconduct generally happened while the employee was still employed, even though the employer did not discover it until later.

For example, an employee may be fired without cause and offered severance. A week later, the employer discovers evidence that the employee committed serious misconduct months earlier.

The employer may then argue that, had it known about the misconduct at the time, it would have had grounds to fire the employee for cause.

If the employer successfully proves after-acquired cause, it can potentially affect the employee’s right to notice or severance.

💡 After-acquired cause is not simply “finding something bad after someone is fired.” The employer must still show that the conduct was serious enough to meet the legal test for just cause.

How Does After-Acquired Cause Work?

An employer can’t simply make an allegation and declare that severance is no longer owed.

The employer generally has to establish that:

  • The misconduct happened before the employee’s termination
  • The employer did not know about the misconduct when it fired the employee
  • The misconduct was serious enough to justify termination for cause
  • The employer had not already accepted or condoned the conduct

The analysis depends heavily on the facts.

A mistake, poor judgment, personality conflict or minor workplace rule violation does not automatically amount to just cause.

The law looks at the seriousness of the conduct in the context of the entire employment relationship.

Can an Employer Change the Reason for Termination?

Potentially, yes. An employer that originally fired someone without cause can later argue that newly discovered misconduct justified a for-cause dismissal.

However, the employer can’t simply rewrite the termination letter and make the employee’s severance rights disappear.

It still has to prove both the misconduct and that the misconduct was serious enough to justify termination for cause.

That distinction matters because termination for cause is one of the most serious forms of dismissal.

⚠️ Being accused of cause is not the same as being properly fired for cause. The employer has to prove that the misconduct was serious enough to justify ending the employment relationship without proper notice.

If the employer can’t establish cause, the employee may still be entitled to compensation for wrongful dismissal.

What Are Examples of After-Acquired Cause?

After-acquired cause usually involves allegations of serious misconduct that the employer says it only discovered after termination.

Examples can include evidence of:

  • Theft or fraud
  • Serious dishonesty
  • Falsified records or documents
  • Serious conflicts of interest
  • Harassment or workplace violence
  • Major breaches of trust
  • Serious misuse of confidential information
  • Conduct that seriously undermined the employment relationship

Even in those situations, context still matters.

The fact that misconduct occurred does not automatically mean the employer had just cause.

Factors such as the employee’s position, length of service, disciplinary history, seriousness of the incident and whether the misconduct was isolated can all be relevant.

Can Something You Do After Being Fired Become After-Acquired Cause?

Generally, after-acquired cause involves misconduct that happened before the employee was fired but was discovered afterward.

That distinction is important.

For example, if an employer fires you on Monday and discovers on Friday that you committed serious misconduct six months earlier, it may attempt to rely on after-acquired cause.

That is different from trying to justify Monday’s termination because of something you did for the first time after your employment had already ended.

💡 The timing of the misconduct matters. After-acquired cause generally concerns conduct that happened during employment, not new behaviour that occurred only after you were fired.

What If the Employer Already Knew About the Misconduct?

An employer can have difficulty relying on after-acquired cause if it already knew about the alleged misconduct when it terminated the employee.

If the employer knew what happened but allowed the employee to continue working, decided not to discipline them or otherwise accepted the behaviour, it may be harder to later rely on that same conduct as grounds for cause.

This can involve the legal concept of condonation.

For example, if an employer knows about an incident, takes no meaningful action and continues the employment relationship for a significant period of time, that can weaken an argument that the same incident made continued employment impossible.

What if the employer only knew part of what happened?

That can be more complicated.

An employer may argue that it knew about some of the circumstances but only discovered the full seriousness of the misconduct after termination.

Whether that supports after-acquired cause depends on what the employer actually knew and what the later evidence adds.

Does After-Acquired Cause Eliminate Severance?

It can affect severance if the employer successfully proves that the newly discovered misconduct amounted to just cause.

But an allegation alone does not eliminate your rights.

Many employees who are accused of cause are still owed compensation because the employer can’t meet the legal threshold required to justify dismissal without notice.

If cause is not established, a non-unionized employee may still be entitled to full severance pay.

For many employees, full severance can reach as much as 24 months’ pay, depending on factors such as:

  • Age
  • Length of service
  • Position and responsibilities
  • Compensation
  • The availability of similar employment
  • The terms of the employment contract

There is no automatic “one week per year of service” rule for full common-law severance.

⚠️ Before you sign, always check first. If your employer says new allegations mean you are no longer entitled to severance, get legal advice before accepting that position or signing a release.

Does After-Acquired Cause Apply Across Canada?

After-acquired cause is a common-law employment principle that can arise in provinces including Ontario, Alberta and British Columbia.

The core issue is similar across these provinces: whether misconduct that occurred during employment but was discovered after termination was serious enough to justify dismissal for cause.

However, provincial employment standards legislation can affect minimum statutory entitlements, so the analysis is not always identical in every province.

After-acquired cause in Ontario

Ontario employers can attempt to rely on serious misconduct discovered after termination. However, the employer still has to prove that the misconduct met the legal threshold for cause.

Learn more about after-acquired cause in Ontario.

After-acquired cause in Alberta

Alberta employers can also attempt to rely on misconduct discovered after an employee has been terminated.

The employer must still show that the misconduct was serious enough to justify termination for cause.

If cause is not established, the employee may still have a claim for proper notice or compensation.

Learn more about wrongful dismissal in Alberta.

After-acquired cause in British Columbia

British Columbia employers can also raise after-acquired cause when serious misconduct is discovered after termination.

Again, simply uncovering negative information is not enough. The employer must establish that the misconduct was serious enough to justify ending the employment relationship without proper notice.

Employees in BC who are suddenly told that their former employer has discovered cause should have the allegation reviewed before giving up their severance claim.

What If Your Employer Alleges Cause After You Challenge Your Severance?

The timing of an employer’s allegation can matter.

For example, you may initially be fired without cause and offered a severance package. After you ask for more compensation or get legal advice, the employer suddenly claims that it discovered serious misconduct.

That does not automatically mean the allegation is improper. Employers can legitimately discover new evidence after termination.

However, an employer cannot simply manufacture or exaggerate allegations to pressure an employee into abandoning a valid severance claim.

If the allegations are unfounded or made in bad faith, that can create additional legal issues.

💡 A new allegation does not automatically mean your severance claim is over. The employer still has to prove that the misconduct happened and that it was serious enough to justify cause.

What Should You Do If Your Employer Alleges After-Acquired Cause?

Do not assume you have lost your rights simply because your former employer says it has discovered cause.

Take these steps:

  1. Do not sign a release. Signing can prevent you from pursuing additional severance or challenging the employer’s allegations.
  2. Keep your termination documents. Save your original termination letter, severance offer and any later correspondence alleging cause.
  3. Do not admit to allegations you disagree with. Be careful about sending a detailed response before understanding the legal consequences.
  4. Preserve relevant records. Keep lawful copies of emails, messages or documents already in your possession that relate to what happened.
  5. Do not take confidential company information. Preserve evidence you are entitled to keep, but do not remove records that belong to the employer.
  6. Get legal advice. Have the employer’s allegation and your severance entitlement reviewed together.
⚠️ Do not let an employer-created deadline rush you into signing. A short severance deadline is different from the legal deadline for pursuing your rights.

After-Acquired Cause: Frequently Asked Questions

What does after-acquired cause mean?

After-acquired cause happens when an employer discovers serious pre-termination misconduct after an employee has already been fired. The employer may then argue that the misconduct would have justified termination for cause.

Can my employer change a without-cause termination to for cause?

Potentially. If the employer later discovers serious misconduct that happened before your termination, it may attempt to rely on after-acquired cause. It still has to prove that the conduct met the legal threshold for cause.

Can my employer use something it already knew about?

That can be much more difficult. If the employer knew about the misconduct and accepted or condoned it, that can weaken a later attempt to rely on the same incident as cause.

Does any workplace misconduct eliminate severance?

No. Just cause is a high legal standard. A mistake, performance issue or minor policy violation does not automatically eliminate an employee’s severance rights.

Can something I did after being fired justify the earlier termination?

After-acquired cause generally concerns misconduct that happened before termination but was discovered later. Conduct that occurred only after the employment relationship ended is a different issue.

Can I still get severance if my employer alleges after-acquired cause?

Yes, potentially. If the employer cannot prove that the misconduct amounted to just cause, you may still be entitled to proper notice or severance.

Should I respond to my employer’s allegations?

Be careful before providing a detailed response. If significant severance is at stake, get legal advice before admitting to allegations or signing documents.

What if I am unionized?

Termination disputes involving unionized employees are generally handled through the union and grievance process. Our employment law team assists non-unionized employees.

Employer Alleging Cause After Your Termination? Get Advice Before You Respond

If you were fired without cause and your former employer is now alleging misconduct, your severance could be at stake.

Do not assume the employer has established cause simply because it says new information has come to light.

Samfiru Tumarkin LLP helps non-unionized employees in Ontario, Alberta and British Columbia understand their termination rights, challenge improper cause allegations and determine how much severance they may be owed.

Before you sign, always check first.

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