Ontario Severance

Statutory Bar — Ontario Employment Law

25 casesDecisions from 1911–2024

About Statutory Bar

In Ontario employment law, a 'statutory bar' acts as a legislative roadblock that prevents a worker from bringing a specific type of legal claim. While limitation periods dictate when you can sue, a statutory bar dictates if you can sue at all based on the rules within a specific piece of legislation. The primary purpose of these bars is to prevent 'double-dipping' (pursuing multiple avenues for the same legal issue) and to ensure specific disputes remain within dedicated administrative systems like the Ministry of Labour or the Workplace Safety and Insurance Board (WSIB).

Two of the most frequently encountered statutory bars in Ontario arise under the Employment Standards Act, 2000 (ESA) and the Workplace Safety and Insurance Act, 1997 (WSIA).

Under subsection 97(2) of the ESA, an employee who files a complaint with the Ministry of Labour seeking termination or severance pay is statutorily barred from pursuing a civil lawsuit for wrongful dismissal in court. The legislation forces workers to choose a single lane. While there is a narrow escape hatch—withdrawing the ESA claim within two weeks of filing it—courts strictly enforce this deadline. Once the window closes or a decision is rendered, civil avenues are completely blocked off.

Similarly, the WSIA contains a powerful statutory bar reflecting a historic compromise. Under this legislation, workers give up their right to sue their employers or co-workers for workplace injuries in civil court. In exchange, they receive access to a no-fault compensation system (WSIB). Attempts to bypass this system by suing an employer for negligence are routinely dismissed by judges as being statutorily barred, often resulting in heavy cost penalties against the plaintiff for attempting to litigate an excluded claim.

Because navigating the intersection of civil courts, administrative tribunals, and binding legislation is highly complex, the specific facts of your situation will drastically alter your available options. Therefore, securing guidance from a qualified Ontario employment lawyer before initiating any formal complaint is crucial to avoid accidentally triggering a statutory bar that limits your potential entitlements.

Frequently Asked Questions

What exactly is a statutory bar in employment law?

A statutory bar is a specific provision within a law (a statute) that prevents a person from pursuing a particular type of legal action. In employment law, it usually blocks an employee from filing a civil lawsuit in court because the legislation dictates that the issue must be handled exclusively by a specific administrative body or because the employee has already chosen another legal avenue.

Can I sue for wrongful dismissal if I already filed an online Ministry of Labour complaint?

Generally, no. Under Section 97(2) of the Employment Standards Act, filing a Ministry of Labour complaint for termination pay acts as a statutory bar against suing your employer for wrongful dismissal in civil court. You must choose one route or the other.

Is there any way to undo my Ministry of Labour complaint so I can sue instead?

Yes, but the window is extremely brief. The ESA provides a two-week period from the date you file the Ministry complaint to formally withdraw it. If you miss this deadline, or if an employment standards officer has already issued a decision, the statutory bar is locked in and courts cannot extend the time limit.

If I am injured at work, why can't I just sue my employer for negligence?

The Workplace Safety and Insurance Act (WSIA) creates a statutory bar that prohibits most civil lawsuits against employers and co-workers for workplace accidents. This is part of a historic trade-off where workers gave up the right to sue in exchange for a guaranteed, no-fault WSIB benefits system.

How is a statutory bar different from a limitation period?

A limitation period is a strict time limit (usually two years in Ontario) within which you must start your lawsuit. A statutory bar, on the other hand, prohibits the lawsuit entirely regardless of how much time has passed, usually because the controlling legislation forces the dispute into an alternative legal forum.

When is the most important time to talk to an employment lawyer about this?

You should speak to a lawyer before submitting any official government forms, claims, or complaints against your employer. Unknowingly triggering a statutory bar by filing a quick administrative complaint can permanently erase your ability to pursue a much larger common law severance package in court.

Common Scenarios

  • A recently terminated marketing director impulsively files an employment standards complaint for basic termination pay. Three weeks later, they discover they were actually entitled to common law notice worth tens of thousands of dollars more, but their civil lawsuit is now statutorily barred by the ESA.
  • A warehouse employee slips on an improperly maintained loading dock and sustains a severe back injury. Frustrated by a slow WSIB process, they attempt to sue their employer for negligence in Superior Court, only to have the lawsuit swiftly struck down and dismissed due to the WSIA statutory bar.
  • A worker's WSIB claim for a chronic injury is formally denied. Upset by the ruling, the worker files a civil lawsuit against both the WSIB and their former employer trying to re-litigate the same medical facts. The court dismisses the action as an abuse of process because the WSIA completely bars civil remedies for that injury.

What You Should Know

  • Never file a Ministry of Labour complaint for unpaid severance without first having your termination package reviewed by an employment professional, as you could permanently forfeit your more valuable common law rights.
  • If you have already submitted an ESA claim and change your mind, act immediately. You only have a two-week window under the Employment Standards Act to formally withdraw the claim before the statutory bar locks you out of the court system.
  • Do not waste resources trying to sue an employer in civil court for a physical workplace injury in Ontario; recognize that the WSIB has exclusive jurisdiction and courts will readily strike down civil injury claims against employers.
  • Always consult a legal advocate to strategically map out your dispute. An experienced lawyer can determine if your specific type of claim (like a human rights violation alongside a termination) has exceptions to statutory bars that allow for parallel proceedings.

Featured Cases

C. v. N.

2024 ONSC 2365 (CanLII) · 2024-04-25

Judicial Review: WSIB Statutory Bar & Course of Employment

This is a judicial review application concerning workplace health and safety and the statutory bar to civil actions under the Workplace Safety and Insurance Act, 1997. The Divisional Court reviewed the tribunal's decisions on whether the worker's offsite bank trip was in the course of employment, the reasonableness of refusing reconsideration, and the standard of review applicable to the tribunal's interpretation of its home statute.

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C. v. Times Kitchen

2024 ONSC 2384 (CanLII) · 2024-04-22

This is a procedural or substantive ruling concerning limitation periods and the discoverability rule in the context of a workplace accident. The case addresses the conflict between the Limitations Act, 2002 and the Workplace Safety and Insurance Act, 1997, specifically regarding reasonable accommodation and the statutory bar on civil suits for workplace injuries.

discoverability limitation periods statutory bar workers compensation workplace injury

T. v. K.

2023 ONSC 1588 (CanLII) · 2023-03-15

This is a procedural ruling regarding jurisdiction in a workplace dispute involving allegations of harassment and defamation within the federal public service. The court determined that section 236 of the Federal Public Service Labour Relations Act bars court jurisdiction over such claims, requiring them to be addressed through the statutory grievance process, and that equitable doctrines like estoppel cannot override this statutory bar.

federal public service harassment jurisdiction labour relations statutory bar

C. v. Ontario (Workplace Safety and

2021 ONSC 7625 (CanLII) · 2021-11-25

Judicial Review: WSIAT Statutory Bar Upheld

This is a judicial review of a Workplace Safety and Insurance Appeals Tribunal decision that barred a civil action under section 28 of the Workplace Safety and Insurance Act. The Divisional Court upheld the Tribunal's decision as reasonable and procedurally fair, rejecting applicants' arguments regarding misapprehension of evidence and procedural unfairness.

administrative law judicial review statutory bar workers compensation workplace injury

M. v. WSIAT

2021 ONSC 5576 (CanLII) · 2021-08-18

Constructive Dismissal Barred by WSIA? Judicial Review

This is a judicial review of a WSIAT decision concerning whether a constructive dismissal claim is barred by the statutory bar in the Workplace Safety and Insurance Act. The Divisional Court found the WSIAT's application of the bar unreasonable, ruling that claims for aggravated, moral, and punitive damages for independent wrongs are not barred. The court permitted the applicant to pursue the constructive dismissal claim directly in court.

constructive dismissal damages judicial review statutory bar wsia

M. v. H.

2018 ONSC 3438 (CanLII) · 2018-06-04

Costs Ruling: WSIA Statutory Bar & Retroactive Registration

This is a costs ruling in a multi-party litigation where the plaintiffs' action was dismissed following a WSIAT decision finding the plaintiff was in the course of employment. The court awarded costs to the successful defendants on a partial indemnity scale, limited to the pleadings stage, to account for institutional delays and retroactive WSIB registration.

costs statutory bar workplace injury wsia wsibat

O. et. al. v Attorney General of Canada et. al.

2017 ONSC 931 (CanLII) · 2017-02-08

RCMP Harassment Claims: Crown Liability Bar

This interlocutory appeal concerns a former RCMP member's claims for harassment, discrimination, assault, and sexual assault arising from her employment. The defendants sought leave to appeal a decision allowing the claims to proceed, arguing they were barred by section 9 of the Crown Liability and Proceedings Act. The court denied leave to appeal, finding no conflict in caselaw and allowing the claims for damages and Charter remedies to proceed at the pleadings stage.

crown liability interlocutory appeal rcmp statutory bar workplace harassment

D. v WSIB

2016 ONSC 5636 (CanLII) · 2016-09-09

WSIB Abuse of Process: Dismissal of Civil Actions

This is a procedural ruling dismissing actions as frivolous, vexatious, and an abuse of process. The plaintiff attempted to re-litigate denied workers' compensation claims by suing the WSIB and their employer in civil court, which is statutorily barred under the Workplace Safety and Insurance Act, 1997.

abuse of process civil procedure statutory bar workers compensation workplace injury

F. v. Cable Bridge Enterprises Limited

2013 ONSC 6436 (CanLII) · 2013-10-15

F. v. Cable Bridge: ESA s.97 Bar on Civil Action

This is an appeal to the Divisional Court from a Small Claims Court decision regarding a wrongful dismissal claim for severance pay. The central issue was whether section 97 of the Employment Standards Act, 2000, barred the civil action because the employee had filed a complaint with the Ministry of Labour. The court examined whether the complaint was properly filed and whether the statutory two-week withdrawal period could be extended.

civil procedure employment standards severance pay statutory bar wrongful dismissal

Ontario Public Service Employees Union v. Ontario (Community Safety and Correctional Services)

2013 ONCA 406 (CanLII) · 2013-05-29

This is a judicial review decision concerning the jurisdiction of a Grievance Settlement Board to award damages for workplace injuries covered by the Workers' Compensation Act. The Court of Appeal for Ontario determined that the Board lacked jurisdiction to award damages for compensable injuries under the collective agreement, as the statutory framework of the WCA and WSIA bars such fault-based claims regardless of whether they are framed in tort or contract.

collective agreements grievance arbitration statutory bar workers compensation workplace injury

L. v. Canadian Tire Corp. Ltd.

2013 ONSC 2735 (CanLII) · 2013-05-09

ESA Bar to Wrongful Dismissal Action: L. v. Canadian Tire

This proceeding determined whether a wrongful dismissal action was barred by subsection 97(2) of the Employment Standards Act, 2000, after the plaintiff had filed an ESA claim. The court also addressed whether the two-week period to withdraw an ESA claim under subsection 97(4) could be extended after a decision was rendered, concluding that the court lacked the authority to do so. Additionally, the court considered whether issue estoppel precluded the civil action but declined to apply it to avoid potential injustice.

civil procedure employment standards issue estoppel statutory bar wrongful dismissal

A. v. Vali Orchard Pharmacy

2013 ONSC 895 (CanLII) · 2013-02-04

Wrongful Dismissal: Statutory Bar & Intentional Torts

This case involves a motion for summary judgment in a wrongful dismissal case. The court addressed whether the plaintiff's civil claim was statute-barred by the Employment Standards Act, 2000, and whether intentional tort claims could proceed independently of the statutory claim. The court determined that intentional torts are independent of statutory wrongful dismissal claims and require a full evidentiary record.

intentional torts statutory bar summary judgment wrongful dismissal

M.F. v. The Royal Canadian Mounted Police

2011 ONSC 3472 (CanLII) · 2011-06-14

Constructive Dismissal: RCMP Pension Act Stay

This is an interlocutory proceeding determining whether claims for constructive dismissal and breach of contractual duties by an RCMP officer are barred by the Pension Act or the Crown Liability and Proceedings Act. The court analyzed whether the factual basis for the employment claims overlapped with pension entitlements, as the statutory bar does not extend to actions in contract unrelated to pension determination.

breach of contract constructive dismissal pension act rcmp statutory bar

Canada (Attorney General) v. Y.

2011 ONCA 83 (CanLII) · 2011-01-25

Y.: Statutory Bar on Workplace Tort Claims

This appeal concerns whether section 236(1) of the Public Service Labour Relations Act bars an employee's right to sue for defamation and other torts arising from workplace disputes, given that the grievance procedure under the collective agreement operates in lieu of any right of action. The Court of Appeal held that the statutory provision bars all workplace-related claims that are grievable under the Act. Additionally, the court declined to address constitutional challenges to the provision because they were not properly pleaded in the statement of claim.

defamation labour relations public service statutory bar workplace disputes

M. v. 171185135 Ontario Inc.

2010 ONSC 6698 (CanLII) · 2010-08-09

Workplace Injury: WSIA Bar and Landlord Liability

This is a merits decision involving a workplace injury claim where the plaintiff was injured by a defective glass table. The court addressed whether the Workplace Safety and Insurance Act (WSIA) barred the action against the employer and determined the landlord's liability under the Occupiers’ Liability Act. The court awarded damages for general damages, past income loss, and medical expenses.

damages occupiers liability statutory bar workers compensation workplace injury

D. v. Babcock & Wilcox Canada Ltd.

2007 CanLII 14328 (ON SC) · 2007-03-07

Wrongful Dismissal: ESA Complaint and Civil Action Interaction

A wrongful dismissal case where the plaintiff filed an Employment Standards Act (ESA) complaint and later initiated a civil action. The court considered whether the failure to withdraw the ESA complaint within the statutory two-week period barred the civil action and whether inherent jurisdiction could be exercised to prevent injustice. The court found inherent jurisdiction exists and allowed the civil action to proceed due to special circumstances.

employment standards act inherent jurisdiction parallel proceedings statutory bar wrongful dismissal

K. v. Canada (Attorney General of)

2003 CanLII 11719 (ON SC) · 2003-02-06

RCMP Officer's Tort Claim After Employment Settlement

A merits decision involving an RCMP officer who commenced a tort action for damages after settling his employment under the Crown Liability Act and receiving a pension from the Consolidated Revenue Fund. The court examined whether the plaintiff was statute-barred from bringing a tort action due to the settlement agreement and the statutory framework.

costs crown liability act settlement agreement statutory bar termination of employment

B. v. Longevity Acrylics Inc.

2001 CanLII 28298 (ON SC) · 2001-05-08

Stay of Proceedings: Workers' Compensation Act

This is a procedural ruling regarding a stay of proceedings and substantial benefits under the Workers' Compensation Act.

statutory bar stay of proceedings workers compensation workplace injury

L. v. Transamerica Commercial Corp. Ltd. et al.

1980 CanLII 1730 (ON SC) · 1980-12-04

Workmen's Comp Board Jurisdiction: Section 8(11) Exemption

A judicial review concerning the jurisdiction of the Workmen's Compensation Board to determine if a defendant, not subject to the Act, is exempt from liability under section 8(11) of the Workmen's Compensation Act. The Board's jurisdiction was upheld based on statutory interpretation and prior case law, finding that the statutory language barred recovery for a plaintiff injured in a motor vehicle accident during employment.

judicial review jurisdiction statutory bar workers compensation workplace injury

Mack Trucks Manufacturing Co.v. Forget

1970 CanLII 52 (ON CA) · 1970-09-15

Workplace Injury: Vicarious Liability & WC Bar

This is a judicial review and statutory interpretation case concerning whether a plaintiff injured in a motor vehicle accident while driving in the course of employment can recover damages from their employer under the Highway Traffic Act, or if such recovery is barred by the Workmen's Compensation Act. The Court of Appeal addressed the exclusive jurisdiction of the Workmen's Compensation Board to determine the applicability of the statutory bar and stayed the proceedings to allow the Board to make that determination. The case later reached the Supreme Court of Canada (Mack Trucks Manufacturing Co. v. Forget, [1974] SCR 788). The Supreme Court dismissed the appeal and affirmed the Court of Appeal's judgment. The Workmen's Compensation Board's right to sue the defendant stands, resulting in judgment for the plaintiff for the agreed damages.

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