Registered Early Childhood Educators (RECEs) in Ontario dismissed without cause are typically entitled to full common law severance, which can equal up to 24 months of pay depending on tenure. If a daycare refuses to pay, you can file a claim at the Superior Court of Justice, with a filing fee of $320 CAD.
Early Childhood Educators (ECEs) are the backbone of Ontario’s childcare system. Despite the immense responsibility they carry in shaping the minds of young children and maintaining strict safety ratios, ECEs often face precarious employment conditions. Whether working in a large corporate daycare in Toronto or a small non-profit centre in Ottawa, educators who are suddenly laid off or fired frequently receive inadequate termination packages that barely cover their rent.
Many daycare operators mistakenly believe that because they operate on tight budgets or rely on government subsidies, they are exempt from paying proper severance. 💵 This is legally incorrect. Under Ontario common law, the financial health of the employer does not reduce an employee’s entitlement to fair notice or pay in lieu of notice. If you are an ECE who has been let go, understanding your true legal entitlements is essential to protecting your livelihood.
Step-by-Step Process for Pursuing ECE Severance
Daycare dismissals can be emotionally charged, especially if you have formed strong bonds with the children and families. However, you must treat your termination as a formal legal matter. Following the correct steps ensures your rights are protected against unfair employer tactics.
Step 1: Obtain Your Record of Employment (ROE)
Your priority is securing income. By law, your daycare must issue a Record of Employment (ROE) to Service Canada within five calendar days of the end of the pay period in which you were terminated. 📍 This document allows you to apply for Employment Insurance (EI). Ensure the employer correctly marked the reason for issuing the ROE (usually “Shortage of Work” or “Dismissal”).
Step 2: Do Not Sign a Release on the Spot
Daycare directors may ask you to sign a “full and final release” in exchange for a few weeks of pay under the Employment Standards Act (ESA). Do not sign it immediately. Taking the paperwork home to be reviewed by a local employment law firm is entirely within your rights. Signing it means you legally forfeit your right to pursue much larger common law severance.
Step 3: Have an Employment Lawyer Assess Your Claim
A lawyer will review your age, your years of service at the daycare, and the availability of similar ECE roles in your specific city. For example, a 55-year-old RECE who has worked at a Kitchener daycare for 20 years could be entitled to 18 to 24 months of severance pay under the Bardal factors, far exceeding the ESA maximums.
Step 4: Negotiate or File at the Superior Court
Your lawyer will issue a demand letter to the daycare’s board of directors or owner. ✉️ If they refuse to offer a fair transition package, your lawyer will file a Statement of Claim at the Superior Court of Justice. Because daycares want to avoid public legal disputes that could alarm parents, they frequently settle out of court.
Common Law Severance vs. ESA Minimums for ECEs
| Employment Standard | What it Covers | Expected Payout for 10 Years Service |
|---|---|---|
| ESA (Provincial Minimum) | The absolute legal minimum required by the government. | Approximately 10 to 18 weeks of base pay. |
| Common Law (Court Precedent) | A holistic calculation based on age, role, and local job market. | Generally 8 to 12 months of total compensation. |
How Much Does it Cost to Challenge a Daycare?
You do not need to be wealthy to stand up to an unfair daycare operator. The legal system in Ontario accommodates workers who have just lost their income.
- Court Filing Fees: Initiating a wrongful dismissal claim at the Superior Court of Justice requires a fee of $320 CAD (as of May 2026).
- Lawyer Fees: Most employment lawyers will represent an ECE on a contingency fee basis. This means they take a percentage (usually around 30%) of the settlement they win for you, charging zero upfront legal fees.
How Long Does the Process Take?
Childcare centres are often highly motivated to resolve disputes quietly. Once a lawyer sends a demand letter showing that their initial severance offer was legally non-compliant, a settlement can often be finalized in 2 to 5 months. If the case requires formal litigation, expect a timeline of 12 to 18 months.
Frequently Asked Questions (FAQ)
What if the daycare closed down completely?
If a daycare closes permanently but the corporation is not bankrupt, they still owe you full severance. However, if the business formally files for bankruptcy, you become an unsecured creditor, which makes collecting common law severance very difficult, though the federal WEPP program may provide some relief.
Can I be fired without severance if a parent complained about me?
A parent complaint does not automatically equal “just cause” for termination. Unless you committed severe misconduct (like abusing a child or breaking critical safety regulations), the employer must give you warnings or provide full severance pay.
Does it matter if I work for a non-profit childcare centre?
No. In Ontario, employment laws apply equally to for-profit businesses and non-profit organizations. A non-profit board of directors cannot use a lack of funding as an excuse to deny you your legal severance entitlements.
Do I keep my benefits during the severance period?
Yes. Under the Employment Standards Act, your employer must continue your health and dental benefits during your statutory notice period. Furthermore, common law requires compensation for lost benefits throughout your entire extended notice period.
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