Performance reviews aren’t legally required, but employers have legal responsibilities and liabilities if they conduct them
Performance evaluations continue to be a staple process in Canadian workplaces, but a persistent myth still trips up employers: the idea that a poor review, or even a string of them, gives an employer the right to dismiss an employee without notice or severance (for “just cause”). As 2026 unfolds, that myth is getting more expensive to believe and, therefore, in this edition of our blog we focus on what you need to know to use performance reviews effectively while maximizing their utility and minimizing legal liability.
Nothing in Canadian employment law obliges an employer to conduct formal performance reviews; annually or at all. Reviews are used because they're good management practice, not because a statute demands them. They are also becoming increasingly requested by employees who want feedback and metrics with which to assess their performance and career trajectory.
While not a legal requirement, once an employer chooses to use performance reviews and relies on them as the basis for discipline or termination, the reviews themselves become evidence, and courts and adjudicators will scrutinize them closely. Thus, they need to be carried out fairly, consistently, and in good faith.
This is the single most important take-home message for HR professionals: a bad performance review,...
Jang, in his 40s, who also runs a beauty salon and works as an insurance planner, registered himself as a caregiver for insured A, an insurance customer, in April. Afterwards, Jang filed a documen...