Find a Lawyer » Canada Legal Guides » Ontario Legal Guides » Work & Employment Rights Ontario » Wrongful Dismissal & Severance Ontario » Page 6
💻IT professionals and software developers in Ontario are generally entitled to common law severance upon termination, which can reach up to 24 months of pay. However, due to the high…
💡In Ontario, the Employment Standards Act (ESA) protects your right to take unpaid time off to care for a sick child through Family Responsibility Leave or Family Medical Leave. Firing…
💡In Ontario, if you are fired for acting as a whistleblower to expose corporate fraud or tax evasion, you have strong grounds for a wrongful dismissal lawsuit. Programs like the…
🚧Many construction workers in Ontario are legally exempt from statutory notice and severance pay under the Employment Standards Act (ESA). However, this exemption does not erase your legal right to…
💡Bank employees in Ontario are federally regulated under the Canada Labour Code (CLC), not provincial laws. If you have worked at a bank for at least 12 months and are…
💡In Ontario, C-Suite executives and CEOs are uniquely positioned to receive the maximum common law severance-often up to 24 months of total compensation. Courts heavily weigh the “Bardal factors,” recognizing…
💡In Ontario, firing an employee for reporting sexual harassment is an illegal act of retaliation known as a reprisal. You may be entitled to claim full common law severance pay,…
💡Non-unionized nurses, dental hygienists, and medical clinic staff in Ontario are fully protected by common law. If you are fired without just cause, you may be entitled to up to…
💡Under the Ontario Labour Relations Act, firing an employee for participating in a union organizing drive is an Unfair Labour Practice (ULP). The Ontario Labour Relations Board (OLRB) has the…
💡In Ontario, an employer cannot simply update an employee handbook to erase your common law severance rights. Unless you explicitly signed a new contract agreeing to the handbook, and received…
💡In Ontario, failing to meet sales targets or quotas is generally considered poor performance, not willful misconduct. This means your employer cannot legally fire you “for cause” and must provide…
💡Under Ontario employment law, the punishment must fit the crime. The Supreme Court of Canada established the principle of “proportionality,” meaning an employer cannot fire you “for cause” over a…
💡If your employer changes management or ownership and asks you to sign a new employment contract, be extremely careful. These new contracts are often designed to drastically reduce your future…
💡Under the Ontario Human Rights Code, employers have a strict legal duty to accommodate your disability to the point of undue hardship. If you are fired simply for requesting an…
💡If an Ontario employer verbally promises you “six months of severance” but you sign a written contract containing an ‘Entire Agreement’ clause, the court will almost always enforce the written…
💡Promissory estoppel is a legal principle that stops an employer from breaking a clear promise they made to you if you relied on that promise to your detriment. If they…
💡If your Ontario employer repeatedly renews your fixed-term contract year after year, the law generally views you as a permanent, indefinite employee. If they suddenly decide not to renew your…
💡In Ontario, if an employment contract’s termination clause is vague, confusing, or potentially violates the Employment Standards Act (ESA), judges apply the “contra proferentem” rule. This means the ambiguity is…
💡Under the Ontario Occupational Health and Safety Act (OHSA), it is strictly illegal for an employer to fire or discipline you for refusing unsafe work. If you face an illegal…
💡In Ontario, the legal principle of “condonation” prevents an employer from firing you for cause over behaviour they previously allowed or ignored. If your boss accepted your constant lateness or…
💡If you signed an employment contract under extreme pressure, duress, or if the terms are aggressively unfair, an Ontario judge may declare the contract ‘unconscionable’ and tear it up. You…
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Welcome to the Ontario Wrongful Dismissal & Severance guide centre. Here you will find comprehensive resources covering everything from calculating common law severance packages to navigating constructive dismissal claims, based on current provincial regulations.
Losing your job is one of life’s most stressful events, especially when you feel you have not been treated fairly by your employer. In Ontario, the law recognizes the significant impact of termination and provides robust protections for non-unionized employees. While employers generally have the right to terminate employment “without cause,” they are legally obligated to provide adequate notice or financial compensation in lieu of that notice, commonly known as a severance package.
The foundational rules are set out in the Employment Standards Act (ESA), which dictates the absolute minimum notice and severance pay required. However, the vast majority of workers are also entitled to much more generous compensation under Ontario common law, which looks at factors like your age, length of service, and the availability of similar jobs. A wrongful dismissal occurs simply when an employer fires you without providing this full, legally required notice or severance pay.
Employment disputes surrounding termination can be complex and emotionally charged. Our resources cover the following key areas:
If your wrongful dismissal dispute cannot be resolved through negotiation, you will likely need to file a civil lawsuit at the Ontario Superior Court of Justice. This court handles the majority of common law employment disputes across the province. For smaller severance claims under $35,000, your case will be heard efficiently at the Small Claims Court branch.
Depending on the specifics of your termination, other provincial bodies may be involved. The Ontario Ministry of Labour, Immigration, Training and Skills Development enforces the minimum standards of the ESA, though filing a claim here often waives your right to pursue a larger common law lawsuit in court. Furthermore, if your firing involved discrimination or reprisal, your matter might be directed to the Human Rights Tribunal of Ontario (HRTO).
Signing a severance offer on the spot or attempting to negotiate with a former employer’s human resources department on your own is highly risky. We strictly advise against representing yourself in complex employment disputes. Employers frequently offer severance packages that only cover the ESA minimums, hoping you will not realize you are entitled to months of additional compensation under common law precedents.
Working with an experienced employment lawyer ensures your termination clause is reviewed properly and your maximum entitlements are accurately calculated. You can find a list of relevant local lawyers and government agencies at the top of this page. A legal professional can level the playing field, communicate with your employer’s legal counsel, and fiercely advocate for the financial security you deserve during your transition.
Statutory severance refers to the strict minimums required by the Employment Standards Act (ESA), which caps out at 8 weeks of notice and potentially 26 weeks of severance pay. Common law severance is based on judicial precedents and can offer up to 24 months of pay, factoring in your age, tenure, and position.
Under the Ontario Limitations Act, you generally have two years from the date of your termination to file a civil lawsuit against your former employer for wrongful dismissal. If you miss this deadline, you will lose your right to pursue legal action.
It is very difficult for an employer to prove a “just cause” termination in Ontario. To legally deny you severance, they must demonstrate severe wilful misconduct, such as theft, fraud, or gross insubordination. Many “for cause” dismissals are actually wrongful dismissals in disguise.
Constructive dismissal occurs when an employer unilaterally makes a substantial, negative change to your employment terms—such as a massive pay cut, a demotion, or forcing you to endure a toxic work environment—leaving you with no reasonable choice but to resign. You can then seek severance as if you were fired.
In late 2021, Ontario amended the ESA to ban non-compete agreements for most employees, meaning they are generally unenforceable. However, there are strict exceptions for executives or in the context of selling a business. Non-solicitation clauses, however, remain widely enforceable.
Never sign a severance offer immediately. Employers often impose arbitrary, short deadlines to pressure you. You have the legal right to take the contract home and have it reviewed by an employment lawyer before giving up your right to sue for better compensation.
