Customer Complaints & Termination: What Small Businesses Need to Know from a Recent Ontario Court Decision

When a customer complains about an employee’s conduct, it can feel like a clear-cut case for discipline—or even termination. But a recent ruling by the Ontario Superior Court of Justice is a reminder that how you act on complaints matters just as much as why you’re acting. 

Here’s what happened—and what it means for your business. 

The Case in a Nutshell 

A 56-year-old salesperson with 18 years of service was terminated after a customer alleged he was pushy and unprofessional during a sales process. The employer said this incident, combined with past performance concerns, was the “last straw.” 

But the court didn’t buy it. 

Instead, it found the termination was not justified and awarded the employee 17 months’ pay in lieu of notice. Why? Because the employer relied too heavily on hearsay, didn’t follow fair process, and couldn’t provide solid evidence to support their decision. 

3 Key Lessons for Employers 

1. Customer Complaints Aren’t Always Enough 

Just because a customer is unhappy doesn’t mean you have cause to fire someone—especially a long-service employee. In this case, the employer relied on a manager’s summary of a phone call with the customer. But the customer didn’t testify, and the court said this wasn’t enough to establish what actually happened. 

What this means for you: If a customer makes a serious allegation, get it in writing, investigate thoroughly, and ensure you have first-hand, reliable evidence before acting. 

2. “Cumulative Misconduct” Still Requires Proof 

The employer tried to argue that this incident was the “final straw” in a pattern of issues. But the court said: show your work. Even if there were past problems, they need to be well-documented and clearly connected to the decision. 

What this means for you: Keep clear, consistent documentation of performance issues over time. If you’re relying on a pattern of misconduct, each incident needs to be legitimate and substantiated. 

3. Long-Service Employees = Longer Notice 

Because the termination was found to be without just cause, the court awarded 17 months’ notice. The employee didn’t have to return to a similar job to reduce his damages, and the employer’s argument that he failed to mitigate didn’t hold up. 

What this means for you: Long-serving employees are entitled to significant notice or pay in lieu if terminated without cause. This amount can increase if your process is found lacking, or if your reasoning doesn’t hold up under scrutiny. 

Final Thought: Fair Process Matters 

This case isn’t about excusing poor performance or difficult behavior. It’s about doing things the right way. A complaint—especially a verbal one—should never be the only thing standing between an employee and the loss of their livelihood. 

Small businesses don’t always have large HR teams, but you’re still expected to follow fair procedures. That includes: 

• Investigating complaints thoroughly 

• Giving the employee a chance to respond 

• Documenting your findings 

• Considering less drastic options before dismissal 

Need Help Navigating Employee Complaints? 

At A&A Consulting, we help small businesses protect themselves while making smart, people-centered decisions. If you’re facing a difficult employee situation or need support with documentation, terminations, or performance management, let’s chat. 

For reference: William Williamson v. Brandt Tractor Inc., 2025 ONSC 2571.