If you are terminated simply for seeking other employment in Ontario, it is almost never considered ‘just cause’. You are generally entitled to full common law severance pay. If your employer refuses, you can file a wrongful dismissal claim at the Superior Court of Justice, where the basic filing fee is currently $320 CAD as of May 2026.
Searching for better career opportunities is a normal part of professional life, but some employers take it personally. When a manager discovers an employee’s updated resume online or catches wind of a job interview, they might react emotionally, treating the job search as an act of disloyalty. However, under Ontario employment law, looking for another job is not a form of “treason” and certainly does not legally justify firing someone without severance.
Employers who terminate staff for job hunting often try to label it as a “just cause” dismissal to avoid paying what they owe. 💼 Whether you work in Toronto, Hamilton, or Sudbury, Ontario courts have repeatedly ruled that simply intending to leave a company does not breach your employment contract. Unless you stole confidential company information to give to a competitor, your employer is legally obligated to provide proper notice or pay in lieu of notice when they let you go.
Step-by-Step Process for Claiming Severance in Ontario
If you were abruptly fired after your employer discovered your job search, you must take immediate steps to protect your legal entitlements. The process involves gathering evidence and formally challenging the employer’s decision through the appropriate legal channels.
Step 1: Secure Your Evidence
If you suspect the termination was triggered by your job search, document everything before you lose access to company systems. 🗂️ Save any emails, text messages, or performance reviews that prove you were a worker in good standing prior to the discovery of your job hunt. If a manager explicitly told you, “We are letting you go because you are looking elsewhere,” make a written record of that conversation immediately.
Step 2: Do Not Sign a Release
Employers will often hand you a termination letter alongside a lowball severance offer, pressuring you to sign a release within a few days. Do not sign anything on the spot. Signing a release permanently strips you of your right to pursue fair common law severance, which is frequently much higher than the minimums required by the Employment Standards Act (ESA).
Step 3: Work with a Local Employment Lawyer
Consulting an Ontario employment law firm is highly recommended. 💵 Your lawyer will analyze your employment contract, assess your tenure, and calculate your true common law entitlements based on your age and position. They will then draft a formal demand letter outlining why a job search does not constitute just cause and demanding full compensation.
Step 4: Filing at the Superior Court of Justice
If the employer stubbornly insists that your job search was a valid reason for dismissal and refuses to negotiate, your lawyer will escalate the matter. This involves filing a Statement of Claim at your local Superior Court of Justice. The formal litigation process often forces the employer to realize they cannot win in front of a judge, leading to a settlement.
Comparing Dismissal Types for Job Searching
| Dismissal Type | Legal Definition in Ontario | Severance Entitlement |
|---|---|---|
| Without Cause | Fired for business reasons, or simply because the employer felt “disloyalty” over a job hunt. | Full ESA minimums plus common law severance (up to 24 months). |
| Just Cause | Fired for severe misconduct (e.g., stealing client lists to take to a new job). | Zero severance pay. Very difficult for employers to prove. |
How Much Does it Cost in Ontario?
Challenging a wrongful dismissal does not have to drain your savings, as the legal industry has adapted to help terminated employees.
- Court Filing Fees: Initiating a civil lawsuit at the Superior Court of Justice costs $320 CAD (as of May 2026).
- Contingency Agreements: Many employment lawyers in Ontario will take your case on a contingency basis. This means they charge no upfront fees and only take a percentage (usually 25% to 33%) of your final settlement.
- Consultation Fees: Some law firms charge an initial consultation fee of $300 to $500 CAD to review your severance package, though many offer free case evaluations.
How Long Does the Process Take?
The timeline depends entirely on how aggressive your former employer decides to be. If they quickly realize they made a legal error by firing you for job hunting, a settlement might be reached in just 2 to 4 months. However, if they refuse to back down and the case must proceed through the Superior Court system, it could take 12 to 18 months to reach a resolution or a trial.
Frequently Asked Questions (FAQ)
Can I be fired for looking for a job on the company computer?
While your employer can fire you for any non-discriminatory reason (such as wasting company time on their equipment), doing so “without cause” means they still owe you full severance. Job hunting on company time rarely meets the high threshold for a “just cause” dismissal.
Does my employer have to pay out ESA minimums right away?
Yes. In Ontario, your employer must pay your statutory ESA minimum notice and severance pay within seven days of your employment ending, or on your next regular pay date, whichever is later. They cannot hold this money hostage while you negotiate common law severance.
What if my job search breached a non-compete clause?
As of late 2021, Ontario banned non-compete agreements for most employees (with exceptions for executives). Therefore, merely interviewing with a competitor is generally legal and not grounds for termination with cause.
Do I still get severance if I resign instead?
No. If you voluntarily resign from your position to take a new job, you forfeit your right to severance pay. You should only seek severance if your employer formally terminates you.
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