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Find a Lawyer » Canada Legal Guides » Ontario Legal Guides » Work & Employment Rights Ontario » Wrongful Dismissal & Severance Ontario » Severance Pay for Security Guards and Loss Prevention Officers in Ontario

Severance Pay for Security Guards and Loss Prevention Officers in Ontario

10 Jun 2026 3 min read No comments Wrongful Dismissal & Severance Ontario
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In Ontario, security guards and loss prevention officers are generally entitled to full common law severance pay if their employer loses a client contract and fails to reassign them to a comparable site. Depending on your age and years of service, this compensation can legally reach up to 24 months of pay.

Working as a security guard or loss prevention officer involves immense dedication, long hours, and significant personal risk. 👮 However, the private security industry in Ontario is highly competitive, and it is incredibly common for security companies to lose building contracts to cheaper competitors.

When a client contract is “flipped” to a new provider, many security firms incorrectly tell their guards that they are simply out of a job with no severance. Under Canadian employment law, losing a client is a normal business risk for the employer, not a legally valid excuse to deny a hardworking employee their rightful compensation.

Step-by-Step Process in Ontario

Whether you patrol a condominium in downtown Toronto, a mall in Mississauga, or a warehouse in Brampton, your employment rights remain strictly protected. 📈 If your security firm loses your designated site, follow these steps to protect your livelihood.

Step 1: Evaluate the Reassignment Offer

If your employer loses a contract, they may attempt to reassign you to a different site. However, if the new site is unreasonably far away (e.g., a two-hour commute) or comes with a severe reduction in pay and hours, you generally do not have to accept it. Forcing these drastic changes upon you is often considered “constructive dismissal” under the law.

Step 2: Understand the “Contract Flip” Rules

Under the Ontario Employment Standards Act (ESA), if a new security company takes over the building and hires you immediately, your years of continuous service carry over to the new employer. 💼 If the new company refuses to hire you, your original security employer is legally responsible for providing your complete termination pay and common law severance.

Step 3: Consult an Employment Lawyer

Before accepting a drastic pay cut or signing any exit documents, consult a local employment law firm. Security companies notoriously offer only the bare minimum ESA weeks, completely ignoring your right to substantially larger common law severance. A lawyer can evaluate your case and file a claim at the Superior Court of Justice if necessary.

How Much Does It Cost in Ontario?

Pursuing the severance pay you rightfully earned does not have to be an overwhelming financial burden.

Cost ElementEstimated Amount (CAD)
Court Filing FeeIssuing a standard Statement of Claim at an Ontario courthouse currently costs approximately $339 CAD.
Law Firm Contingency FeeMost employment lawyers take 25% to 35% of the final settlement, meaning you pay no upfront hourly fees.
Hourly Legal ConsultationIf you prefer paying hourly for advice, rates generally range from $300 to $600 CAD per hour in Ontario.

How Long Does the Process Take?

Resolving a severance dispute in the security sector requires patience and strategy. 🕐 A well-drafted demand letter from your law firm can often secure a fair settlement within 2 to 4 months. If the security company is stubborn and the case must proceed through the Superior Court of Justice, it can take 1.5 to 2.5 years to reach a formal trial or mediated resolution.

Frequently Asked Questions (FAQ)

Do I get severance if the client demanded my removal?

Yes, generally. If a client simply dislikes you and asks the security firm to remove you from the site, your employer must still either reassign you to comparable work or dismiss you with a full severance package. Client preference does not equal just cause for termination.

What if I am a unionized security guard?

If you are part of a union, your severance rights are entirely dictated by your specific Collective Bargaining Agreement (CBA). You must work directly with your union representative to file a grievance, as you generally cannot sue in civil court.

Can the employer claim ‘frustration of contract’?

No. Ontario courts have repeatedly ruled that losing a client contract is a foreseeable business reality, not an unforeseeable event that frustrates the contract. The employer remains fully liable for your severance.

How does my age affect my severance?

Under common law, older workers (especially those over 50) generally receive significantly higher severance packages because judges recognize it is much harder for them to secure equivalent new employment in the physical security industry.

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