After-discovered just cause

Misconduct discovered after employee was dismissed without cause and given pay in lieu of notice
By Tim Mitchell
|Canadian Employment Law Today|Last Updated: 07/06/2016

Question: If an employee is dismissed without cause and her salary is continued during the notice period, can the employer stop payment if misconduct is later discovered that would have justified dismissal without notice?

Answer: Where an employee was dismissed without cause, it is possible for an employer to rely on after-discovered misconduct amounting to just cause to cease severance payments. However, the bar that the employer must meet in order to do so is high.