Asserting Cause: What Not To Do

Occasionally some employers use an allegation of cause which they know to be unsupportable, or worse, untrue, as leverage to "encourage" a dismissed employee to settle a potential wrongful dismissal claim on terms that are favourable to the employer.  While this can be a successful, although ethically questionable strategy, it can also backfire if the employer elects to rely on the unsupported or false allegations following the commencement of legal proceedings.

CANLII and Westlaw are littered with tales cautioning against this course of action.  It is common for judges to punish employers for making unsupported or false allegations of cause.  Usually the punishment is in the form of a longer notice period.  However, there are other options available to a judge and which can have significant adverse financial consequences for the employer.