Notice of Termination — Ontario Employment Law
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About Notice of Termination
In Ontario, 'notice of termination' is the formal communication from an employer to an employee indicating that their job will be ending. Its primary purpose is to provide the employee with a transition period to find new employment. This notice can be provided in two main ways: 'working notice,' where the employee continues to work for a specified period, or 'payment in lieu of notice' (PILON), where employment ends immediately and the employee is paid what they would have earned during the notice period.
The Employment Standards Act, 2000 (ESA) sets out the minimum amount of notice an employer must provide. This statutory notice is based on the employee's length of service, ranging from one week for an employee who has worked for three months, up to a maximum of eight weeks for an employee with eight or more years of service. However, this is just the floor, not the ceiling. Most employees in Ontario are also entitled to 'reasonable notice' under common law, which is almost always a significantly longer period than the ESA minimums. Common law notice is determined by factors like age, length of service, character of employment, and the availability of similar work.
For a notice of termination to be legally valid, it must be clear, specific, and unequivocal. A vague statement like, 'we might have to make changes in the coming months,' does not constitute proper notice. The notice must specify a clear end date. The date on which clear, written notice is provided is critical, as it often starts the clock on the two-year limitation period for an employee to file a wrongful dismissal claim. Given the significant difference between ESA minimums and common law entitlements, understanding the validity and adequacy of the notice you receive is crucial. Each situation depends on its unique facts, and having the notice document reviewed by a legal professional can provide crucial clarity on your rights and potential entitlements.
Frequently Asked Questions
Does my employer have to give me notice of termination in writing?
While verbal notice can be legally binding, it is often difficult to prove and can lead to disputes about when it was given and what was said. Written notice is the standard and provides clear evidence of the termination date. Under the ESA, notice of termination must be in writing.
What's the difference between ESA notice and common law reasonable notice?
ESA notice is the statutory minimum set by the Employment Standards Act, 2000, based only on your years of service (up to 8 weeks). Common law reasonable notice is a potentially much longer period determined by courts, considering factors like your age, role, service length, and job market.
My employer gave me a letter saying my job might end in 3 months. Is this valid notice?
No, likely not. To be valid, notice of termination must be specific, clear, and unequivocal. Conditional or uncertain statements about a potential future termination do not typically meet the legal standard for proper notice in Ontario.
How long do I have to sue for wrongful dismissal after I get my notice?
In Ontario, you generally have two years from the date you knew or ought to have known you had a claim, which is often the date you received clear notice of termination. This is a strict deadline under the Limitations Act, 2002, so it's vital to act promptly.
Can my employer change my job duties during my working notice period?
During a working notice period, your employer must maintain the fundamental terms and conditions of your employment. A significant negative change to your duties or pay could be considered a constructive dismissal, effectively terminating you without proper notice at that point.
When should I talk to a lawyer about my notice of termination?
You should consider speaking with an employment lawyer as soon as you receive any notice of termination, especially before signing any documents. A lawyer can assess whether the notice provided is adequate under common law and ensure you are not signing away rights to greater compensation.
Common Scenarios
- A project manager with 12 years of service receives a letter stating her position will be eliminated in eight weeks, and she is offered her minimum entitlements under the ESA.
- During a casual conversation, a supervisor tells a skilled tradesperson, 'We're looking at a slowdown, so your last day will probably be at the end of the month,' but provides nothing in writing.
- An IT specialist receives an email on a Friday afternoon informing him that his employment is terminated effective immediately and he will be paid two weeks' pay in lieu of notice.
- A long-term administrative assistant is given six months of 'working notice' but is immediately reassigned to a lower-status role with fewer responsibilities.
- An employee on a fixed-term contract is told one month before its end date that the contract will not be renewed, even though the contract itself contains no clause about notice of non-renewal.
What You Should Know
- Always insist that any notice of termination be provided in a formal, written document. This creates a clear record of the date and terms.
- Do not sign any release or termination agreement immediately upon receiving notice. You have the right to take it away and seek legal advice before signing.
- If you are given 'working notice,' continue to perform your duties professionally, but document any significant negative changes to your role, pay, or work environment.
- Carefully check the final end date specified in your notice letter. This date is critical for calculating entitlements and legal deadlines, like the two-year limitation period to file a claim.
- Consult with an Ontario employment lawyer to review your notice. They can determine if it meets the standards of common law 'reasonable notice,' which could be substantially more than the ESA minimums offered by your employer.
Featured Cases
Thambapillai v Labrash Security Services Ltd.
2016 ONSC 6068 (CanLII) · 2016-09-27Termination of Employment: 12-Year Employee Awarded Damages
A case involving the termination of employment where a 72-year-old immigrant was terminated without proper notice after 12 years of service. The court found the employer in breach of the Employment Standards Act and awarded damages for mental distress. Summary judgment was granted, and the case was denied transfer to the Small Claims Court.
Joss Covenoho v Pendylum Inc.
2016 ONSC 4969 (CanLII) · 2016-08-16Employment Standards Act Dispute: ESA Claims, Termination Notice, Fixed-Term Contracts
A case involving employment standards disputes under the Employment Standards Act, 2000, including vacation pay, public holiday pay, and overtime pay claims, termination notice entitlements, and fixed-term contract early termination. The court ruled that section 97 of the ESA does not bar the plaintiff's claims, and section 54 does not require notice for short-term employment. The fixed-term agreement allowed for immediate termination without further liability.
Riskie v Sony of Canada Ltd.
2015 ONSC 5859 (CanLII) · 2015-09-22Fixed-Term Employment Contract Validity and ESA Compliance
A wrongful dismissal case involving a fixed-term employment contract where the plaintiff argued the contract was void due to lack of consideration, duress, and failure to agree on essential terms. The court also considered ESA compliance and the validity of the early termination clause.
Iliescu v. Voicegenie Technologies Inc.
2009 CanLII 385 (ON SC) · 2009-01-06Constructive Dismissal and Contract Modifications Case
A case involving constructive dismissal and termination notice period disputes. The employee alleged abandonment of their position and verbal modifications to their employment contract, while the employer claimed the employee failed to comply with directives and that the termination notice period was reasonable. The court applied the Farber v. Royal Trust Co. test for constructive dismissal and the Nelles v. Ontario test for malicious prosecution.
Dixon v. Hanning House Limited
2007 CanLII 54954 (ON SC) · 2007-11-30Wrongful Dismissal: Limitation Period Dispute Over Termination Date
A wrongful dismissal case where the plaintiff alleged termination occurred in August 2005, but the defendant argued notice was provided in June 2005, rendering the claim statute-barred. The court examined the commencement date of the limitation period under the Limitations Act, 2002, and whether the notice of termination needed to be in writing, applying principles from Jones v. Friedman and Hunt v. Carey Canada Inc.
Kirkland v. Lohmann Tierzucht Canada Ltd.
2007 CanLII 19422 (ON SC) · 2007-05-28Wrongful Dismissal: Limitation Period Begins with Notice of Termination
A wrongful dismissal case where the plaintiff alleged termination after receiving oral notice in December 2003 and written notice in March 2004. The defendant argued the two-year limitation period under the Limitations Act, 2002 applied, while the plaintiff contended the six-year period from the previous legislation should apply. The court addressed whether the limitation period begins with oral or written notice of termination.
Tanju v. CAL Corp.
1996 CanLII 8139 (ON SC) · 1996-06-14Termination Case: 12-Month Notice Awarded Despite Temporary Assignments
A merits decision in a termination of employment case where the plaintiff received a notice of termination on January 27, 1994, effective March 24, 1994, with a severance package. The court determined the notice was clear and unequivocal, and that temporary assignments did not extend the notice period. The plaintiff was awarded 12 months’ salary from January 27, 1994, subject to deductions for payments already made.
Emery v. Royal Oak Mines Inc.
1995 CanLII 7223 (ON SC) · 1995-10-05Wrongful Dismissal: Inadequate Notice and Prejudgment Interest Award
A wrongful dismissal case where the plaintiff was dismissed with inadequate notice. The court addressed whether inadequate severance constitutes immediate repudiation of the employment contract and determined that the cause of action arose when notice of termination was given, not when salary payments ceased.
McKay v. Camco Inc.
1983 CanLII 1644 (ON SC) · 1983-11-21Wrongful Dismissal: Disability Benefits Deducted from Damages
A wrongful dismissal case where the employee was dismissed with notice of termination effective two months later. The employee argued for nine months' notice based on their position, age, and economic conditions, but the court found three to six months' notice appropriate. The court also ruled that disability benefits received by the employee, equivalent to five-and-a-half months' salary, should be deducted from the damages awarded, as the employer should not be required to pay the employee's salary twice.