Losing your job is one of the most stressful experiences in everyday life. Below is a basic roadmap to help you navigate this difficult situation.

The following information applies specifically to non‑unionized employees. Unionized employees should contact their union representative regarding termination.

Fundamental Premise of Employment Law

Unless you have a fixed‑term contract, your employer can terminate your employment at any time and for any reason, except discrimination (discussed later). However, unless there is just cause, the employer must provide notice of termination or pay in lieu of notice.

Just Cause for Dismissal

Employers may claim just cause to avoid notice or pay. The burden is on the employer to prove just cause, which usually involves serious misconduct, such as theft, fraud, assault, or sexual harassment. For less serious issues (e.g., absenteeism, insubordination, poor performance), employers must follow documented progressive discipline outlining misconduct, improvement requirements, and warnings.

Notice of Termination

Notice entitlements are governed by two rules:

  • Employment Standards Act (ESA): One week’s notice per year of service (up to eight weeks) as termination pay. Severance pay (one additional week per year) may also apply in certain situations.
  • Common Law: Courts enforce reasonable notice based on service length, role, salary, and age. Usually around one month per year of service, but can range from two months (short‑term employees) to 24 months (senior employees).

Under Common Law, employees must mitigate damages by seeking new work. Failure to mitigate can reduce compensation. Mitigation does not apply under the ESA.

Employment Contracts

Applicants often sign contracts limiting employer obligations. Always consult a lawyer to review such agreements, as many clauses may be unenforceable.

Discrimination and Human Rights

Employers cannot terminate based on protected grounds (race, gender, age, disability, etc.). Under the Ontario Human Rights Code, employers must accommodate disabilities to the point of undue hardship. Claims can be pursued through the Human Rights Commissions or combined with wrongful dismissal claims in court, potentially leading to reinstatement, back pay, or additional damages.

Legal Process

Most wrongful dismissal claims settle before court. Typically, negotiations start with compensation demands. If unresolved, a Statement of Claim is filed, and the employer often settles before trial. Unresolved cases proceed to trial for a judicial decision.