Ask a Canada Law Question, Get an Answer ASAP!
Yes. This is completely inappropriate behaviour in an office and it is most assuredly inappropriate to treat people who are husband and wife like this when they are the employers. You would not be expected to keep her on.
You do not owe her termination pay if she's being dismissed for just cause.
However, employers often provide termination pay even when they may not have to to void a lawsuit. She may be very angry when she is dismissed and immediately go to a lawyer.
If you want to provide her with termination pay let me know how long she has worked for you and I will explain the law.