Terminating a Union Employee in Ontario in 2025

Terminating a union employee in Ontario is fundamentally different from terminating non-union staff. 

The collective agreement governs the process, grievance procedures provide extra protection, and arbitration can overturn your decision if you don't follow proper steps. 

For managers and HR professionals in unionized workplaces, understanding these differences is crucial for protecting both your employees and your organization.

This guide outlines the essential steps and best practices for handling union employee terminations in a fair and legally compliant manner.

What Makes Union Terminations Different?

In unionized workplaces, three key differences change how terminations work:

The collective agreement rules: Your collective agreement, not just employment standards, governs termination procedures and employee rights.

Just cause is required: You generally can't terminate union employees without just cause, even with notice or pay. You must prove the termination is justified.

Grievance rights exist: If an employee believes their termination was unfair, the union can file a grievance that may go to arbitration. 

An arbitrator can overturn your decision or order reinstatement.

Navigating union terminations requires deep knowledge of collective agreements and labour relations. 

Our employee relations services provide hands-on support to help you handle these sensitive situations with clarity.

Understanding Just Cause

Just cause is the high legal standard required to terminate a union employee. 

Arbitrators look at whether you have clear evidence that justifies termination as a proportionate response.

1. Common Just Cause Grounds

  • Serious misconduct (theft, violence, fraud, harassment)
  • Persistent performance issues after progressive discipline
  • Willful disobedience or insubordination
  • Excessive absenteeism after warnings and accommodation efforts

2. What Arbitrators Evaluate

  • Proper investigation: Did you gather evidence and let the employee respond?
  • Clear rules: Did the employee know what was expected and the consequences?
  • Progressive discipline: Did you use warnings before termination (except for serious misconduct)?
  • Proportionate penalty: Does termination fit the offense, considering the employee's history?

Even with a valid cause, improper process can result in overturned terminations. This is why following correct procedures is critical.

Step 1: Know Your Collective Agreement

Before starting any termination, review your specific collective agreement thoroughly. Every agreement is different.

Key Provisions to Find

  • Termination clauses: What grounds and procedures are required?
  • Progressive discipline requirements: What steps must you take before termination?
  • Notice requirements: When must you notify the employee and union?
  • Union representation rights: When can the employee have a union rep present?
  • Grievance procedures: What are the timelines and steps?
  • Probationary period rules: Are there different standards for new employees?

Missing these details can invalidate your entire process, no matter how justified the termination.

Step 2: Document Everything

Strong documentation is your best protection in arbitration. Arbitrators decide based on evidence, not just what you say happened.

What to Document

  • Specific incidents: Dates, times, locations, witnesses, and factual descriptions
  • Previous discipline: All warnings, suspensions, and the employee's responses
  • Clear expectations: What needs to change and by when
  • Investigation notes: Interviews, evidence gathered, findings
  • Accommodation efforts: For disability-related performance issues
  • Meeting records: Notes from all discussions about concerns

Avoid vague statements like "poor attitude." Use specific, objective examples of problematic behavior or performance failures.

Step 3: Follow Progressive Discipline

Unless misconduct is extremely serious, arbitrators expect progressive discipline before termination. This shows you gave the employee reasonable chances to improve.

Typical Progressive Discipline Steps

  1. Verbal warning: Informal conversation addressing the issue and expectations
  2. Written warning: A formal document describing the problem, expected changes, and consequences
  3. Suspension: Temporary unpaid suspension (if permitted) signaling seriousness
  4. Termination: Final step when previous discipline hasn't worked

Your collective agreement may specify different steps or timelines; always follow those requirements.

When You Can Skip Steps

You may move directly to termination for:

  • Physical violence or threats
  • Theft, fraud, or dishonesty
  • Serious safety violations endangering others
  • Sexual harassment or discrimination
  • Being impaired in safety-sensitive roles

Even in these cases, proper investigation and documentation remain essential.

Step 4: Conduct a Fair Investigation

For serious misconduct allegations, a thorough investigation protects everyone's rights and your organization's interests.

Investigation Checklist

  • Act promptly when you learn of potential misconduct
  • Remain neutral, don't jump to conclusions
  • Interview the employee, witnesses, and relevant parties
  • Gather physical evidence (documents, emails, video footage)
  • Give the employee a chance to explain their side
  • Involve union representation as required by your agreement
  • Maintain confidentiality throughout
  • Document your entire process and findings

Answer these key questions: What happened? When and where? Who was involved? Why did it happen? What evidence supports or refutes the allegations?

We know that complex workplace investigations require impartial handling and specialized skills. 

That’s why our HR strategy team provides expert investigation support, ensuring thorough, fair processes that protect all parties.

Step 5: Plan the Termination Meeting

Once you've determined termination is warranted and have followed all procedures, plan the meeting carefully.

Before the Meeting

  • Review collective agreement requirements for termination meetings
  • Notify the union in advance (usually required)
  • Prepare all relevant documentation
  • Plan what you'll say clearly and concisely
  • Have an HR representative or manager present as a witness
  • Choose appropriate timing (avoid Fridays or holidays when possible)

During the Meeting

  • Be direct and respectful: State clearly that employment is ending and why
  • Stick to facts: Reference documented incidents and prior discipline without emotion
  • Let them respond: Listen to what they say, but be clear that the decision is final
  • Explain next steps: Cover final pay, benefits, property return, and grievance rights
  • Provide written notice: Include the effective date, reason, and any entitlements
  • Maintain dignity: Treat the person with respect and professionalism

Remember: The union rep will be taking notes. Everything you say may be repeated in a grievance hearing; we recommend checking out our guide on how to conduct a termination conversation.

What Happens After: Grievance and Arbitration

The union may file a grievance challenging your termination decision. Understanding this process helps you prepare.

1. Grievance Process

Most collective agreements have multiple steps:

  1. Initial grievance: Union files with supervisor/manager who must respond within specified timeframe
  2. Higher levels: If unresolved, moves to senior management or HR
  3. Arbitration: Either party can refer unresolved grievances to a neutral arbitrator

Each step has strict timelines. Missing deadlines can dismiss grievances or deem them accepted.

2. Arbitration Outcomes

An arbitrator can:

  • Uphold the termination as justified
  • Overturn it and order reinstatement with back pay
  • Substitute a lesser penalty (suspension instead of termination)

Arbitration is expensive and time-consuming, often taking months or years. Strong documentation and proper process significantly improve your chances of success.

Special Situations to Consider

Even probationary employees typically have some collective agreement protections. Review your specific agreement to understand what applies during probation.

1. Performance Issues

Performance-based terminations require:

  • Extensive documentation of deficiencies
  • Clear communication of expectations
  • Reasonable improvement opportunities and support
  • Consideration of disability-related performance (requiring accommodation)

Performance terminations are harder to sustain than misconduct terminations because they're more subjective.

2. Attendance Problems

Distinguish between:

  • Culpable absences: Within the employee's control (skipping work)
  • Non-culpable absences: Beyond their control (legitimate illness)

For non-culpable absences, you must show that the employee can't fulfill basic job obligations and that accommodation would create undue hardship.

3. Medical or Disability Issues

Terminating for medical reasons involves human rights considerations. You must:

  • Explore all reasonable accommodation options
  • Obtain appropriate medical information (with consent)
  • Document why accommodation is impossible or creates undue hardship

Accommodation and human rights issues definitely add complexity to terminations. 

HR compliance expertise can help you navigate accommodation obligations, obtain appropriate medical information, and make defensible decisions that balance employee rights.

Best Practices for Union Employee Relations

Build positive union relationships: Good working relationships with union leaders make difficult situations more manageable.

Train your managers: Frontline managers need training on collective agreement provisions, progressive discipline, and documentation requirements.

Be consistent: Apply rules and discipline fairly across all employees. Inconsistency undermines your credibility.

Communicate clearly: Ensure employees understand expectations, rules, and consequences.

Get expert help early: Don't wait until termination is imminent to involve labour relations expertise.

For best practices, fractional HR services can help you have consistent access to senior HR professionals who understand union environments, helping you strengthen manager capabilities.

Conclusion

Terminating a union employee in Ontario requires careful attention to collective agreement provisions, labour relations principles, and proper procedures. 

While more complex than non-union terminations, following the right process protects both employee rights and your organization's interests.

The key to success is preparation: thorough documentation, proper investigation, progressive discipline, and strict adherence to collective agreement requirements. 

Every termination affects people, the individual, their coworkers, and the workplace culture. 

If you need guidance navigating union employee terminations, contact TROIS Collective today to discuss how our labour relations expertise can help you handle complex situations with confidence.