How to Challenge a Termination for Cause in Vancouver

Termination for cause, or for “just cause,” means an employer has ended an employee’s employment because of a fundamental breach of the employment contract. Under common law in British Columbia, the employee’s actions must be so serious that continued employment is no longer possible. Termination for cause is often referred to as the “capital punishment” of employment law. As such, it is reserved for only the clearest of cases of employee misconduct. It is crucial for employees to understand how they can challenge a termination for cause in Vancouver if they believe it to be unjust.

Because this is such a serious action, the employer must have adequate evidence and grounds to justify their assertion of termination for cause.

Successful Examples of For-Cause Termination

Examples of conduct that may lead to termination for cause or just cause include:

• Theft
• Fraud or dishonesty
• Gross incompetence (after opportunities to improve)
• Chronic absenteeism
• Violence, harassment, or abuse
• Serious insubordination or insolence
• Breach of confidentiality or conflict of interest

Even if misconduct falls into these categories, it may still not justify termination for cause. Each case is fact-specific, and courts will consider the surrounding circumstances, including the employee’s length of service, disciplinary history, and the severity of the conduct. It’s important to note that poor performance alone, without a pattern of willful misconduct or serious breach, will not meet the threshold for termination for cause.

If you have been terminated for cause, it is important to meet with one of our experienced employment lawyers in Vancouver or Langley to determine whether your employer truly had cause to terminate your employment.

Limited Grounds and Progressive Discipline

Generally, there are very few valid reasons for any employer to terminate an employee for cause. In addition, employers in most cases will be required to show that they used “progressive discipline” before proceeding with termination (unless the misconduct is so severe that immediate termination is justified).

Progressive discipline may include:

• Verbal warnings
• Written warnings – which provide clear notice that failure to improve could result in termination; and
• Suspension – (with or without pay)

Many employers will have policies on how they deal with discipline, and will often even set out their own procedure for progressive discipline. One good way to challenge a termination for cause is to examine whether or not the employer actually followed their own policy on progressive discipline before making the decision to terminate the employee’s employment for cause.

For example, an employer who implements immediate termination after a first offense—without any prior written warnings or a reasonable opportunity for the employee to improve—would likely fail to meet the progressive discipline standard required by BC courts.

Why You Should Challenge a Termination for Cause in Vancouver

If you are terminated for cause, your employment ends immediately, and you are not entitled to severance pay, termination pay, notice, or pay in lieu of notice—only wages up to the termination date.

However, if the employer cannot prove or substantiate their “for cause” assertion, then you will have been wrongfully terminated and could be entitled to:

• Severance pay (sometimes up to 18–24 months of wages, depending on factors such as age, length of service, and position)
• Additional damages (aggravated or punitive) if the employer acted in bad faith

Given the progressive discipline process required of an employer, and the limited grounds that permit an employer to terminate an employee on a single incident, it often makes sense to challenge the for cause assertion.

Workplace Investigation

If an employer launches a workplace investigation into an employee’s actions, the employee should comply with that investigation, however they should first and foremost retain a lawyer and advise their employer that their lawyer will be present during the investigation to protect their rights.

Having a lawyer present during the investigation process can help ensure that the employer is conducting the investigation thoroughly and in an unbiased manner. If the employer does not provide a proper investigation and terminates the employee for cause based on the investigation, then the employee can rely on this to undermine the “for cause” assertion, and potentially seek additional damages.

What to Do Immediately

Upon being terminated for cause, or for just cause, an employee should:

• Gather all relevant documents: employment contract, discipline letters, workplace policies, emails, text messages, termination letter, pay stubs, and any performance reviews
• Document the investigation process: Were you informed of allegations? Did you have a chance to respond? Were you given access to the evidence against you?
• Avoid signing anything without legal advice, including any releases or settlement offers
• Speak to one of our experienced employment lawyers promptly

Acting quickly is important. In British Columbia, there are limitation periods that apply to wrongful dismissal claims. You generally have two years from the date of termination to file a civil claim, but seeking legal advice early ensures you preserve your options and gather evidence while it is still available.

Employer Liability for Improper Termination

If an employer terminates for cause without sufficient evidence, they risk significant liability, including:

• Wrongful dismissal damages
• Aggravated or punitive damages for bad faith
• Damages under human rights law if termination involves discrimination (e.g., failure to accommodate a disability)

Courts have held that employers owe a duty of good faith and fair dealing. Maintaining a termination for cause argument without proper grounds can breach this duty.

Common Employee Defenses

• The incident was not as serious as claimed
• The employer failed to investigate properly
• The employer did not provide warnings or opportunities to improve – i.e., the employer failed to follow progressive discipline procedures
• The termination violated human rights legislation

Case Summary: Vestergaard v. Destiny Media Technologies Inc., 2025 BCSC 2093

The case of Vestergaard v. Destiny Media Technologies Inc. involved a claim of wrongful dismissal brought by Steven Vestergaard, the founder and former President and CEO of the Destiny Companies, against the corporate entity and its directors. Mr. Vestergaard alleged he was terminated without cause, but the central question for the British Columbia Supreme Court was the legitimacy of the company’s reasons for dismissal.

The Court ultimately dismissed all of Mr. Vestergaard’s claims (including wrongful dismissal, conspiracy, and defamation), ruling that the company had demonstrated just cause for the termination. The Court found that Mr. Vestergaard’s conduct had rendered the continuation of his employment “untenable,” making dismissal the only appropriate response.

The finding of just cause was based on a combination of serious misconduct, including:

1. Breach of Fiduciary Duty/Conflict of Interest: Mr. Vestergaard repeatedly prioritized the affairs of his personal business interests (the Lions Bay businesses) over his duties to Destiny. This included neglecting core responsibilities for Destiny, using company time for his personal business, and condoning a subordinate employee performing work for his outside interest during company hours.
2. Failure to Perform Core Duties: He persistently failed to discharge fundamental employment obligations, such as failing to provide business plans and critical information as requested by the Board of Directors.
3. Insubordination: After being placed on paid administrative suspension, Mr. Vestergaard willfully disobeyed clear, lawful instructions from the Board by refusing to cooperate with an internal workplace investigation, even after being expressly warned that his failure to participate would be considered insubordination.

The Court concluded that this collective misconduct went to the root of the contract, fundamentally striking at the heart of the employment relationship and justifying dismissal without notice.

This case illustrates how cumulative misconduct—even without a single dramatic incident—can establish just cause when the employee’s behaviour fundamentally undermines the employment relationship.

Bottom Line

If you have been terminated for cause in Vancouver, Langley, or the Fraser Valley, gather your documents and contact one of our Vancouver or Langley employment lawyers immediately to discuss how to challenge a termination for cause. For employers—carefully consider whether you truly have cause, or whether a without-cause termination with proper notice is the safer option.

Contact YLaw today for a consultation.