Generally, you cannot get severance pay if you voluntarily quit your job in Ontario. However, if your employer forces you to resign by drastically changing your job duties, cutting your pay, or creating a toxic work environment, you may claim “constructive dismissal” and pursue a full severance package.
Understanding Your Rights Before You Resign in Ontario
Deciding to leave your workplace is rarely an easy choice, especially if you feel like you have no other option. Many workers wonder about getting severance pay if you quit your job in Ontario, hoping for a financial cushion while they transition. The general rule under the Employment Standards Act is that a purely voluntary resignation means you walk away with nothing but your final paycheque and any accrued vacation pay. 💼
However, employment law in Ontario recognizes a major exception known as constructive dismissal. If your employer makes your work life impossible—such as slashing your salary, demoting you without cause, or ignoring severe workplace harassment—they are essentially firing you in disguise. In these frustrating situations, you may be legally entitled to the exact same severance package as if you were formally terminated.
Step-by-Step Process in Ontario
Proving that you were forced to resign is legally complex, and the burden of proof is generally on the employee. If you believe you are facing a constructive dismissal, here are the steps most employment professionals recommend taking to protect your claim for severance pay if you quit your job in Ontario. 📋
Step 1: Identify the Fundamental Change
Before handing in your notice, you need to clearly identify what your employer changed. A minor shift in schedule or a new manager is usually not enough. The law generally requires a fundamental change to your employment contract, such as a pay reduction of 15% or more, a forced relocation to a distant centre, or a significant demotion in title and duties. 🔍
Step 2: Object to the Changes in Writing
If your employer introduces a major change, you generally should not stay silent. If you continue working under the new conditions for months without complaining, an Ontario judge might decide that you accepted the new terms. It is highly recommended to send a polite but firm email to Human Resources or management stating that you do not agree with the changes to your job.
Step 3: Document the Toxic Environment
If you are being pushed out due to a poisoned or toxic work environment, documentation is your best defence. Start keeping a private journal detailing every incident of harassment, bullying, or unfair discipline. Note the dates, times, locations, and any witnesses present, and save copies of all inappropriate emails or messages before you lose access to the company system. 📒
Step 4: Draft a Strategic Resignation Letter
How you word your resignation is critical to your severance claim. If you simply write “I quit to pursue other opportunities,” it is very difficult to later claim you were forced out. A strategic resignation letter should clearly state that you are resigning because of the specific unacceptable changes or the toxic environment, framing it as a constructive dismissal.
Step 5: File Your Legal Claim
Once you have resigned, you can pursue your severance package. For straightforward, smaller claims, some workers file through the Ontario Ministry of Labour. However, under Section 97(1) of the Employment Standards Act, 2000 (ESA), filing a Ministry complaint bars you from starting a civil action for the same matter. You must withdraw a Ministry complaint within two weeks of filing if you want to sue for common law severance, which can reach up to 24 months’ pay—far exceeding the limited statutory minimums of the ESA. If you pursue a civil lawsuit, note that filing processes have changed. For example, in Toronto, rather than physically filing a Statement of Claim at the counter of the court at 393 University Avenue, you must submit your civil claim electronically. Since October 14, 2025, the Ontario Courts Public Portal (OCPP) has fully replaced the old Justice Services Online (JSO) platform and paper filings for civil claims in the Toronto region. 🏛
Voluntary Resignation vs. Constructive Dismissal
Understanding the difference between choosing to leave and being forced to leave is the key to knowing if you can get a severance package. Here is a general comparison of how these two situations are viewed in Ontario. 📝
| Feature | Voluntary Resignation | Constructive Dismissal |
|---|---|---|
| Reason for Leaving | You found a better job, decided to retire, or went back to school. | Employer cut your pay, demoted you, or allowed extreme harassment. |
| Severance Pay Entitlement | None. You only get your final wages and unpaid vacation pay. | Potentially entitled to full notice pay or a common law severance package. |
| Employment Insurance (EI) | Usually not eligible to collect EI benefits. | May be eligible for EI if you prove you had no choice but to quit. |
How Much Does it Cost?
Pursuing a constructive dismissal claim involves careful planning, and there are potential financial costs depending on how you choose to enforce your rights. Here is a general breakdown of what to expect in Ontario: 💰
- Ministry of Labour Claims: Filing a basic claim through the provincial Ministry is completely free, but under Section 97(1) of the ESA, doing so prevents you from pursuing a lawsuit for common law severance (unless you withdraw the complaint within two weeks). The Ministry can only award limited statutory minimums (up to 8 weeks of termination pay), unlike common law packages which can reach up to 24 months’ pay.
- Small Claims Court Fees: If you are suing for up to $50,000 (increased from $35,000 as of October 1, 2025, under O. Reg. 42/25), the filing fee is currently around $108, plus potential fees for a process server and a trial scheduling fee of approximately $308.
- Superior Court Fees: For claims over the $50,000 Small Claims limit, the court filing fee to issue a Statement of Claim at the Ontario Superior Court of Justice is a fixed $243 as prescribed by O. Reg. 293/92.
- Legal Fees: Many employment professionals operate on a contingency basis, taking a percentage (often 25% to 35%) of your final settlement. Others charge hourly rates that typically range from $300 to $600 per hour.
How Long Does the Process Take?
The timeline to get severance pay if you quit your job in Ontario due to constructive dismissal can vary significantly. If your employer recognizes their mistake and agrees to a quick settlement, the matter might be resolved in 2 to 4 months. 🕙
However, employers often fight constructive dismissal claims aggressively because they believe you left voluntarily. If you need to go through mediation or examinations for discovery, expect the process to take 8 to 12 months. If your case is complex and must proceed to a full trial at the Superior Court of Justice, it is not uncommon to wait 1.5 to 2.5 years for a final judge’s decision.
Frequently Asked Questions (FAQ)
Can I get Employment Insurance (EI) if I quit?
Generally, you cannot collect EI if you voluntarily quit. However, if you can demonstrate to Service Canada that you had “just cause” to leave—such as unsafe working conditions, harassment, or a massive pay cut—you may still be approved for EI benefits while you look for new work.
How much pay reduction is considered constructive dismissal?
In Ontario, courts generally consider a unilateral pay reduction of 15% or more to be a fundamental breach of the employment contract. Smaller cuts might also qualify if they are combined with other negative changes, like losing your benefits or being stripped of a company vehicle.
Can my employer force me to move to a different city?
Unless your employment contract explicitly states that you can be transferred, forcing you to relocate to a distant centre that significantly increases your travelling time or disrupts your life can be viewed as constructive dismissal.
Should I quit immediately if my boss yells at me once?
A single incident of a boss losing their temper is rarely enough to prove a toxic workplace, unless the incident involves severe abuse or physical threats. Constructive dismissal usually requires a pattern of ongoing, unresolved toxic behaviour that makes continued employment truly impossible.
Can I take back my resignation if I change my mind?
If you quit in the heat of the moment during a stressful shift, you might be able to retract your resignation if you do so very quickly (usually within a day or two) and your employer has not already taken steps to replace you. However, there is no guarantee they will accept the retraction.
Do I still have to mitigate my damages if I claim constructive dismissal?
Yes. Just like any wrongful dismissal case in Ontario, you have a legal duty to mitigate. This means you must actively apply for comparable jobs and keep a detailed record of your job search efforts, otherwise, a judge may reduce your final severance package.
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