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ARTICLE · 27 JUNE 2019

Ruston v Keddco And The Risks Of Employee Intimidation

The decision to terminate an employee for just cause can place an employer in a delicate balancing act.

CanadaEmployment and HR

The decision to terminate an employee for just cause can place an employer in a delicate balancing act. On one hand, employers often feel pressure to vigorously defend their position that the employee's conduct reached the (high) threshold required for just cause dismissal. On the other, as illustrated in the recent Ontario Court of Appeal decision in Ruston v Keddco MFG (2011) Ltd., 2019 ONCA 125, conduct which might be viewed as intimidation tactics or threats can open an employer up to a number of legal problems – and a significant amount of ensuing liability.

The case's underlying facts are relatively straightforward. Keddco MFG (2011) LTD., the employer, sought to terminate its president, Scott Ruston, for just cause. In the termination meeting, Keddco provided Mr. Ruston essentially no details of the reason for his dismissal; in response to his questions, a Keddco representative simply stated, "I think you know".

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