Employers often believe that an employee’s conduct should play a role in its obligations to him or her upon termination. To the extent that those factors assist the employer in establishing just cause for termination, the employers would be correct. However, if the improper conduct does not meet the ever-elusive standard for just cause, what effect does it have on the reasonable notice period owed to the employee as common law damages for wrongful dismissal? In other words, can the employer “knock down” the reasonable notice period by arguing that it almost established cause?
In its brief decision in Dowling v Halifax (City), [1998] 1 SCR 22, the Supreme Court of Canada emphatically held that the doctrine of “near cause” has no place in Canadian employment law. In fact, the Court wrote that it would “not accept any argument relating to near cause.”