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Wrongful Dismissal Following a Criminal Charge That Was Dropped in Ontario

10 Jun 2026 3 min read No comments Wrongful Dismissal & Severance Ontario
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In Ontario, if your employer fires you for cause simply because you were arrested off-duty, and those criminal charges are later dropped or you are acquitted, you may have a strong claim for wrongful dismissal. You could be entitled to your full common law severance pay, plus potential extra damages for bad faith conduct.

An unexpected arrest or a criminal investigation is a terrifying ordeal that can instantly turn your personal and professional life upside down. 🚨 Many employers panic when they discover an employee has been charged with an off-duty offence, such as an impaired driving charge or a domestic dispute, and immediately rush to terminate them.

The fundamental principle in Canadian law is that you are innocent until proven guilty. When an employer jumps the gun and fires you without paying severance based entirely on unproven police allegations, they take a massive legal risk. If the Crown later withdraws the charges or the court finds you not guilty, the company’s justification for firing you completely evaporates.

Step-by-Step Process in Ontario

Whether the incident occurred in Toronto, Ottawa, or a smaller municipality like Sudbury, navigating the intersection of criminal and employment law requires extreme caution. 📈 Follow these steps to protect your freedom and your career.

Step 1: Secure a Favourable Criminal Resolution

Your absolute priority is resolving the criminal matter. Do not accept a plea deal simply to “make it go away” without understanding the employment consequences. Work closely with a criminal defence lawyer to have the charges dropped, withdrawn, or resolved via a peace bond, which generally avoids a formal criminal conviction on your record.

Step 2: Do Not Simply Resign to “Save Face”

Employers frequently offer you a “chance to resign” to supposedly protect your professional reputation. 🗒 You must refuse this pressure. If you voluntarily resign, you completely legally forfeit your right to pursue a wrongful dismissal lawsuit for a severance package, and you will likely be denied Employment Insurance (EI).

Step 3: Launch a Wrongful Dismissal Claim

Once the charges are dropped or stayed, contact an employment law firm immediately. Your lawyer will file a Statement of Claim at the Superior Court of Justice. They will argue that since the criminal conduct was never proven, the employer had no just cause for termination and now owes you months of common law severance pay.

How Much Does It Cost in Ontario?

Fighting on two legal fronts can be expensive, but securing your severance can help offset the costs of your criminal defence.

Legal Service TypeEstimated Cost in CAD (2026)
Criminal Defence RetainerDefending off-duty charges (like a summary conviction) typically starts between $3,000 and $10,000+ CAD.
Superior Court Filing FeeFiling a civil lawsuit against your former employer costs roughly $339 CAD.
Employment Lawyer Contingency FeeMost employment lawyers will take your severance case on contingency, retaining 25% to 35% of the settlement amount.

How Long Does the Process Take?

This process requires immense patience because you are dealing with two separate court systems. 🕐 Resolving the criminal charges in Ontario can take anywhere from 6 to 18 months due to severe judicial backlogs. Once the charges are officially dropped, an employment lawyer can often negotiate a wrongful dismissal settlement with your ex-employer in 3 to 6 months. If the employer refuses to settle, the civil trial may take another 1.5 to 2.5 years.

Frequently Asked Questions (FAQ)

Does the employer have to give me my job back?

Generally, no. Ontario employers are not legally forced to reinstate you after the charges are dropped. Instead, they must compensate you financially by providing a full common law severance package for wrongfully dismissing you without cause.

What if my job requires a clean criminal record check?

If your role strictly requires an active security clearance (like a bank teller or a teacher) and the mere presence of pending charges suspends that clearance, the employer might legally place you on an unpaid administrative leave until the matter is resolved.

Can the employer rely on “reputational damage”?

Employers often claim they fired you because the arrest embarrassed the company. However, Ontario courts require the employer to prove objective, measurable financial or reputational harm. Simply appearing in the local police blotter is rarely enough to justify firing a standard employee without severance.

Can I sue the company for defamation?

If the employer maliciously spread false information about your arrest to clients or other staff members, you might be entitled to claim aggravated damages or launch a defamation lawsuit in addition to your wrongful dismissal claim.

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