In Ontario, if an employer fires you because a background check or credit check comes back poorly weeks after you started working, it is generally considered a termination without cause. If you were induced to quit a secure job to take this new position, you may be entitled to a massive severance package, despite your short tenure.
The Shock of Being Fired Just After Starting a New Job
Securing a new job is usually a time for celebration, especially after enduring rounds of interviews and salary negotiations. 💼 For many professionals in Toronto, Ottawa, and Mississauga, accepting a new offer means bravely handing in a resignation letter at a secure, long-term workplace. However, a nightmare scenario unfolds when a new employer suddenly pulls you into a meeting two weeks later and fires you because a delayed background check, reference check, or credit report yielded unexpected results.
Many Ontario employers mistakenly believe that during the first few weeks of employment, they have a “free pass” to fire anyone without financial consequences. 📍 This is a dangerous misconception under Canadian employment law. Unless your employment contract specifically included a legally valid probationary clause or explicitly stated that your hiring was strictly conditional on passing a background check, you are considered a full employee. Firing you because they changed their mind based on old data is a termination without cause, and you are generally owed a full common law severance package.
Step-by-Step Process for Seeking Severance in Ontario
If you have been abruptly let go shortly after your start date, you are likely feeling panicked about your career and finances. 📝 The most critical thing is to protect your legal rights and avoid signing any releases that offer zero compensation. Here is the generally recommended path for Ontario workers facing this exact situation.
Step 1: Scrutinize Your Employment Contract
Before doing anything else, find the employment contract you signed before your first day. 📄 Look carefully for two specific things: a probationary period clause and a “condition precedent.” A condition precedent is a clause stating the job offer is completely conditional upon a clean background check. If this clause is missing, or if the probationary clause was drafted poorly, the employer has severely limited their legal protection.
Step 2: Document “Inducement” Factors
Did the new employer recruit you on LinkedIn while you were happily employed elsewhere? 💻 If they aggressively recruited (or “induced”) you to leave a secure job, Ontario courts take this very seriously. Gather all emails, messages, and offer letters proving they poached you. Inducement can drastically multiply your severance entitlement because the new employer essentially promised you security and then broke that promise.
Step 3: Partner with a Wrongful Dismissal Lawyer
Because these cases involve complex overlapping issues like inducement and contract law, consulting an employment law firm is vital. 👥 A skilled lawyer in Hamilton or Brampton will assess your contract and determine exactly what you are owed under common law. They will formally write to the employer, arguing that relying on a delayed background check does not constitute just cause for dismissal.
Step 4: Launching a Claim at the Superior Court of Justice
If the employer refuses to offer fair compensation and insists they owed you nothing because you were there for only three weeks, your lawyer will likely file a Statement of Claim. ⚖ In Ontario, most significant wrongful dismissal claims are filed at the Superior Court of Justice. Through mandatory mediation, many employers realize their mistake and settle the case before it ever sees a courtroom.
How Much Does It Cost to Hire an Employment Lawyer?
Losing your income unexpectedly means you need a cost-effective legal solution. 💰 Fortunately, accessing justice in Ontario does not require you to drain your savings account.
| Legal Service Type | Average Cost in Ontario (CAD) | How It Works |
|---|---|---|
| Contingency Fee Agreement | 25% to 35% of the final settlement | You pay no upfront hourly fees. The law firm takes a percentage only if they successfully force the employer to pay your severance. |
| Hourly Document Review | $250 to $800 per hour | Used if you just want to pay a lawyer for one hour to read your employment contract and assess its validity. |
| Superior Court Filing Fees | $228 CAD | The mandatory provincial government fee required to officially issue your Statement of Claim. |
How Long Does the Process Take?
The timeline for resolving a short-tenure dismissal case varies wildly. 🕎 If an employer’s HR department quickly realizes they forgot to include a background check condition in your contract, a lawyer’s demand letter might yield a settlement in just 3 to 5 weeks. However, if the employer digs their heels in, the litigation process through the Superior Court of Justice can easily take 12 to 18 months to reach a resolution through mediation or trial.
Frequently Asked Questions (FAQ)
Can an employer legally fire me for bad credit?
Generally, an employer can terminate you without cause for almost any reason, including a poor credit score, as long as they pay you proper severance. However, they cannot use bad credit as “just cause” to fire you with zero severance unless your flawless credit was an explicit, documented requirement for a highly sensitive financial role.
What if my contract had a probation clause?
Even if you signed a contract with a 3-month probationary period, it must be drafted perfectly to bypass common law severance. Ontario courts frequently strike down probationary clauses if they violate the strict minimum standards of the Employment Standards Act (ESA), meaning you could still be owed a full severance package.
Am I entitled to severance if I only worked there for two weeks?
Yes! Under common law, even very short-term employees are entitled to reasonable notice or severance pay. If it took you six months to find this job, and you were fired after two weeks, a judge may award you several months of pay to help you bridge the gap while you search for another role.
Can they fire me for a criminal record?
In Ontario, the Human Rights Code protects employees from discrimination based on a “record of offences” (meaning a summary conviction or an indictable offence for which a pardon has been granted). If they fire you simply because an old, pardoned offence showed up, you could be entitled to human rights damages.
Can I claim Employment Insurance (EI)?
Yes. If you are fired without cause because a background check did not meet company preferences, Service Canada generally considers this a valid reason to grant Employment Insurance (EI) benefits. You must ensure your former employer issues your Record of Employment (ROE) promptly.
You should not be punished financially for an employer’s poorly executed hiring process. If you were recently let go in Ontario due to a delayed background check, browse our directory to find a skilled employment lawyer who can review your hiring documents and demand the fair compensation you need.
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