Notice Period — Ontario Employment Law
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About Notice Period
In Ontario, when an employer terminates an employee without cause, they cannot simply show them the door. They must provide advance warning, known as a notice period. This period is a bridge, giving the employee time to find new work while still receiving their compensation. There are two distinct types of notice periods that every Ontario worker should understand. First is the statutory minimum notice required by the Employment Standards Act, 2000 (ESA). This is a simple formula: one week of notice for every year of service, up to a maximum of eight weeks. This is the absolute legal floor. However, for most employees, this is not the full story. The second, and often much more significant, entitlement is to 'reasonable notice' under common law. This is a concept developed by judges over decades to ensure fairness. The length of a common law notice period isn't based on a simple formula but on a set of factors known as the Bardal factors: the employee's age, length of service, the character of their employment (e.g., seniority and specialization), and the availability of similar employment in the market. This period can range from a few months to as much as 24 months or even longer in exceptional cases. An employer can satisfy this obligation in two ways: by providing 'working notice,' where you continue to work until the end of the period, or by providing 'payment in lieu of notice' (PILON), where your employment ends immediately, and you receive a lump sum payment. Crucially, this payment should cover all aspects of your compensation—including salary, bonuses, commissions, benefits, and pension contributions—that you would have earned had you worked through the notice period. Because the calculation of a fair notice period depends heavily on individual circumstances, what might be appropriate for one person is not for another, making it a frequent area of dispute.
Frequently Asked Questions
What's the difference between the notice period and severance pay in Ontario?
Notice period (or termination pay under the ESA) is owed to most employees terminated without cause. Severance pay is a separate ESA entitlement, only owed to long-service employees (5+ years) at large companies (payroll of $2.5M+). You can be entitled to both, in addition to your common law reasonable notice.
Am I entitled to my bonus and benefits during the notice period?
Yes. If you receive payment in lieu of notice, it should include all forms of compensation you would have earned during the notice period, not just your base salary. This includes bonuses, commissions, car allowances, benefits coverage, and pension contributions.
My employment contract says I only get two weeks' notice. Is that legally binding?
It might be, but often it is not. For a termination clause in a contract to be enforceable, it must be drafted with very precise legal language. Many clauses that attempt to limit you to ESA minimums are found to be invalid by courts, which would mean you are entitled to full common law reasonable notice.
What happens if I find a new job during my notice period?
If you were terminated and received payment in lieu of notice, finding a new job affects your entitlements. The income from your new job is typically deducted from the damages owed by your former employer, as you have a duty to 'mitigate' your losses. This is a complex area of law.
Do I have to work during my notice period if my employer asks me to?
Yes, if your employer provides 'working notice,' you are generally expected to continue performing your duties in good faith. If you refuse, it could be seen as a resignation, and you might forfeit your entitlements. However, if the situation is toxic or you're asked to do something demeaning, you may have other options.
When should I talk to a lawyer about my notice period?
You should consider speaking with an employment lawyer before signing any termination documents. This is especially important if you are a long-serving or senior employee, if the offer seems low, or if your employer is relying on a termination clause in your contract to limit your payout.
Common Scenarios
- A 58-year-old marketing director with 18 years of service is terminated without cause and offered 8 weeks' pay, the maximum under the ESA, when their common law notice period is likely closer to 18-20 months.
- A software developer is terminated after four years and receives payment in lieu of notice, but the payment does not include the value of the stock options that would have vested during their six-month reasonable notice period.
- An administrative assistant with 10 years of service is given 'working notice' but is immediately stripped of their key duties and asked to spend their days training their much younger replacement.
- An employee is terminated and, believing the company's offer is final, immediately signs a release in exchange for a small payment, only to later learn they were likely entitled to a notice period three times as long.
What You Should Know
- Never sign a release or full and final settlement offer on the spot. You have the right to take it away and seek legal advice to ensure the notice period offered is fair.
- Understand that your entitlement is not just base salary. Gather documents related to all forms of your compensation, like bonus plans, commission statements, and benefits booklets, to calculate the full value of your notice period.
- Remember that the Employment Standards Act provides the minimum floor for notice, not the ceiling. Your true entitlement under common law is often substantially more.
- If you are terminated, start your job search right away and keep detailed records of your applications and interviews. This demonstrates you are fulfilling your legal duty to mitigate your damages.
- If your employer's offer is based on a termination clause in your contract, have an employment lawyer review it. These clauses are often unenforceable, which could dramatically increase your notice period entitlement.
Featured Cases
Adelman v. IBM Canada Limited
2026 ONSC 420 (CanLII) · 2026-01-27Wrongful Dismissal: 24-Month Notice Period for Senior IBM Executive
A wrongful dismissal case involving a senior executive with long service at IBM Canada Limited. The court determined a 24-month notice period and awarded damages for base salary, pension contributions, and benefits. The case also addressed the entitlement to a bonus and equity compensation during the notice period.
Li v. Wayfair Canada ULC.
2025 ONSC 2959 (CanLII) · 2025-07-09Termination of Employment: Notice Period, RSUs, and Mitigation
A termination of employment case involving a plaintiff who was employed for nine months and sought common law notice beyond the Employment Standards Act minimums. The court applied Bardal factors and found a four-month notice period appropriate. The case also addressed the vesting of Restricted Stock Units during the notice period and the enforceability of a termination clause in the employment agreement.
Abbasbayli v. Fiera Foods Company
2025 ONSC 3240 (CanLII) · 2025-05-30Termination for Cause: Time Theft and Mitigation of Damages
A termination for cause case where an employee was accused of time theft and denied wrongdoing. The court determined the employer had just cause to terminate the employee and awarded ten months' notice period. The employee failed to mitigate damages by not producing tax returns or evidence of job search efforts, and a claim for unpaid vacation pay under the Ontario Business Corporations Act was dismissed as abandoned.
Lachapelle v. St. Laurent Automotive Group Inc.
2025 ONSC 1956 (CanLII) · 2025-03-31Constructive Dismissal Case: Temporary Layoff During Pandemic
A constructive dismissal case involving a temporary layoff during the COVID-19 pandemic. The court determined that the temporary layoff without contractual provision constituted constructive dismissal and awarded seven months' notice. The case also addressed the plaintiff's obligation to mitigate damages and entitlement to a construction retention bonus.
Battiston v. Microsoft Canada Inc.
2021 ONSC 1341 (CanLII) · 2021-03-08Long-Term Employee Termination: Notice Period and Stock Awards
A long-term employee terminated without cause after 23 years was awarded 23 ¾ months of notice. The court also addressed damages for unvested stock awards and costs related to the civil procedure. The case involved determining the appropriate notice period, damages for unvested stock, and the application of costs principles in civil proceedings.
Rothenberg v. Rogers Media Inc
2020 ONSC 5853 (CanLII) · 2020-09-29Wrongful Dismissal: 73-Year-Old Employee Awarded 21 Months Notice
A wrongful dismissal case where a 73-year-old employee with 20 years of service in the radio broadcasting industry was terminated without cause. The court awarded a 21-month notice period, finding no failure to mitigate damages and no exceptional circumstances justifying a longer period.
Hucsko v. A.O. Smith Enterprises
2020 ONSC 1346 (CanLII) · 2020-03-03Wrongful Dismissal: Just Cause for Sexual Harassment Dismissal Unjustified
A wrongful dismissal case where an employer's reliance on just cause for dismissing a senior employee was found unjustified. The court determined a 20-month notice period, rejected a mitigation reduction, and denied aggravated or punitive damages due to a reasonable investigation into harassment allegations.
McLean v Dynacast Ltd.
2019 ONSC 7146 (CanLII) · 2019-12-17Constructive Dismissal: Unilateral Changes and Aggravated Damages Awarded
A constructive dismissal case where the plaintiff was reassigned to a lower-status position with significant changes to duties, work environment, and compensation. The court applied the Potter test and awarded 28 months' notice, $25,000 in aggravated damages, and considered income from part-time work for mitigation earnings.
McInerney v. RJM Holdings Limited
2019 ONSC 7179 (CanLII) · 2019-12-11Wrongful Dismissal: Employee Resigned Due to Altered Duties
A wrongful dismissal case where an employee left her workplace due to altered duties. The court found that the employee resigned rather than being wrongfully dismissed, and no damages were awarded for wrongful dismissal. The case also involved other legal issues such as employment contracts, mitigation of damages, and shareholder oppression.
Manthadi v. ASCO Manufacturing
2019 ONSC 5572 (CanLII) · 2019-09-26Wrongful Dismissal: 36-Year Employee Awarded 20 Months Notice
A wrongful dismissal case involving a 64-year-old welder with 36 years of service who was terminated without cause. The court determined a 20-month notice period, found no reduction in damages due to the plaintiff's job search efforts, and awarded damages without reduction for a prior settlement. Summary judgment was granted as the case had few material facts in dispute.
Headley v. City of Toronto
2019 ONSC 4496 (CanLII) · 2019-08-27Wrongful Dismissal: City of Toronto Employee Awarded 18 Months Notice and Damages
A wrongful dismissal case where the employer failed to prove just cause for terminating an employee due to alleged theft and fraud. The court awarded 18 months' notice and damages for mental distress and financial loss, but did not grant punitive damages.
Tagg Industries v. Rieder
2018 ONSC 5727 (CanLII) · 2018-09-27Termination Without Just Cause: Court Finds No Admissible Evidence
A court case involving the termination of an employee without just cause, where the employer alleged misconduct but failed to provide admissible evidence. The court also addressed the notice period, finding it to be one calendar month, including the date the bonus became due. The case also touched on the granting of summary judgment on a counterclaim without a cross-motion.
Andros v. Colliers Macaulay Nicolls Inc.
2018 ONSC 4954 (CanLII) · 2018-08-21Wrongful Dismissal: Termination Clause and Notice Period
A wrongful dismissal case involving a termination clause and notice period. The court considered the indemnity provisions and relevant rules of civil procedure. The case also touched on the Winding-up Act. The outcome is not explicitly stated in the keywords.
MacKenzie v. 1785863 Ontario Ltd.
2018 ONSC 3442 (CanLII) · 2018-06-01Wrongful Dismissal: General Manager Awarded Nine Months' Notice and $7,500 in Exemplary Damages
A wrongful dismissal case where a general manager without a written contract was terminated at age 65. The court awarded nine months' notice and $7,500 in exemplary damages for the defendant's unfounded attacks on the plaintiff's character. The defendant's solicitor abandoned the defence, leading to an invitation for submissions on costs against the solicitor personally.
Visaggio v. Joynt-Dent Inc.
2018 ONSC 1911 (CanLII) · 2018-03-2333-Year Dental Hygienist Awarded 24 Months Notice in Wrongful Dismissal Case
A wrongful dismissal case involving a 33-year employee who was terminated without cause. The court awarded 24 months' notice and $110,294 in damages, applying Bardal factors and Bhasin v. Hrynew principles. The employer was found to have breached the duty of good faith by attempting to alter employment terms.
Edmond v. Algonquin College
2018 ONSC 1898 (CanLII) · 2018-03-23Wrongful Dismissal: Proportionality of Cause-Based Termination
A wrongful dismissal case where the court assessed the proportionality of a dismissal for cause after nine years of satisfactory service. The court found the dismissal disproportionate and awarded 12 months' notice and damages for lost salary and benefits. The case also involved claims for breach of good faith and privacy rights, which proceeded to summary trial.
Dussault v. Imperial Oil Limited
2018 ONSC 1168 (CanLII) · 2018-02-20Wrongful Dismissal: 39-Year Employee Awarded 26 Months Notice
A wrongful dismissal case involving two long-term employees (39 and 36 years) who were terminated without cause. The court determined a 26-month notice period based on Bardal factors and granted summary judgment in favour of the plaintiffs, applying the Hryniak v. Mauldin framework.
Hagholm v. Coreio Inc.
2017 ONSC 7713 (CanLII) · 2017-12-27Constructive Dismissal: 22-Year Employee Awarded 22 Months Notice
A constructive dismissal case where a plaintiff, after 22 years of working from home three days a week, was required to work full-time in the office. The court found constructive dismissal and determined a 22-month notice period. The case also addressed the plaintiff's duty to mitigate and the appropriateness of summary judgment.
Ste-Croix v. Al-Hashimi and Jawad Dentistry
2017 ONSC 7447 (CanLII) · 2017-12-13Wrongful Dismissal: 17-Year Employee Awarded 12 Months Notice and $22,084 in Damages
A wrongful dismissal case where a receptionist and bookkeeper with 17 years of service was terminated without cause. The court determined a 12-month notice period based on Bardal factors and awarded 12 months' pay in lieu of notice, less statutory termination pay and earnings from temporary employment. Summary judgment was granted, and costs were awarded for the abandonment of a Human Rights claim.
Bain v UBS Securities Canada Inc.
2017 ONSC 1472 (CanLII) · 2017-03-03Wrongful Dismissal: 14-Year Employee Awarded 18 Months Notice and Bonuses
A wrongful dismissal case where an employee with 14 years of service was terminated without proper notice or bonuses for 2012 and 2013. The court awarded 18 months' notice, bonuses, vacation pay, referral fees, and benefits, considering the employer's unreasonable conduct. Pre-judgment interest was also awarded on a lump sum basis.