Termination — Ontario Employment Law
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About Termination
In Ontario, the end of an employment relationship is referred to as a termination. This is a broad term that covers several distinct situations, each with its own legal rules and implications. Understanding the basics is the first step for any worker facing the end of their job.
The most common type of termination is a 'termination without cause.' This is a fundamental principle of Ontario employment law that often surprises employees: an employer can end your employment at any time for almost any reason—or even no reason at all—as long as the reason is not discriminatory (e.g., based on your age, race, or disability, as protected by the Ontario Human Rights Code). In a without-cause termination, the employer's primary obligation is to provide you with either advance notice of the termination date or payment in lieu of that notice. This entitlement comes from two sources: the minimum standards set by the Employment Standards Act, 2000 (ESA), and the more generous 'reasonable notice' developed through common law.
The other main category is 'termination for cause.' This occurs when an employer terminates an employee for serious misconduct, such as theft, fraud, or significant insubordination. If an employer can prove 'just cause,' they are not required to provide any notice or payment in lieu. However, the legal bar for proving just cause is very high, and employers often fail to meet it.
Finally, a termination can also be a 'constructive dismissal,' where the employer makes a fundamental change to your job without your consent, effectively forcing you to resign. While you can find more detail on our page about this topic, it is legally treated as a termination without cause.
Every termination situation is unique, and the documents you are asked to sign can have a permanent impact on your rights. Evaluating whether a termination offer is fair requires a detailed analysis of your specific circumstances, including your age, length of service, role, and the terms of your employment contract.
Frequently Asked Questions
Can my employer fire me for no reason in Ontario?
Yes. This is called a termination without cause. Your employer can terminate your employment for almost any non-discriminatory reason, but they must provide you with notice, termination pay in lieu of notice, or a combination of both, according to your entitlements under the ESA and common law.
What's the difference between being fired and being laid off?
In Ontario, a temporary layoff has specific rules under the ESA. However, unless your contract allows for it, a layoff can often be legally considered a termination, entitling you to notice or pay in lieu. If a layoff becomes permanent, it is a termination.
How long do I have to take legal action after being terminated?
Generally, under Ontario's Limitations Act, you have two years from the date you were terminated (or knew you had a claim) to start a lawsuit for wrongful dismissal. It's crucial to act quickly as this deadline is strict.
What is the difference between termination pay under the ESA and reasonable notice at common law?
Termination pay under the Employment Standards Act (ESA) is the statutory minimum notice or pay required. Common law reasonable notice is often a much longer period, based on factors like your age, role, and service length. Most employees are entitled to common law notice unless a valid contract limits them to ESA minimums.
I was just terminated. What is the very first thing I should do?
Do not sign any documents, such as a 'Full and Final Release,' immediately. Take the documents with you and state that you need time to review them. These papers often require you to give up your right to sue in exchange for a settlement.
My termination offer seems low and has a deadline. When should I see a lawyer?
You should seek legal advice as soon as possible, well before the deadline expires. An employment lawyer can assess whether the offer is fair, explain your rights under both the ESA and common law, and help you negotiate a better package if appropriate.
What does it mean to be terminated 'for cause'?
Termination 'for cause' means you were fired for serious misconduct. If an employer can prove just cause, you are not entitled to any notice or pay. However, the standard of proof is very high, and what an employer calls 'cause' may not meet the legal test.
Common Scenarios
- A marketing manager with 15 years of service is let go during a 'restructuring' and offered eight weeks' pay, the minimum required by the ESA.
- A construction worker is fired on the spot for alleged poor performance and is told they are not entitled to anything because it was 'for cause'.
- A recently hired software developer is terminated without cause at the 11-month mark and is told they don't get any severance because they were there for less than a year.
- An office administrator is given a termination package with a letter stating the offer expires in 48 hours, pressuring them to sign the release form quickly.
What You Should Know
- Never sign a release or termination agreement on the spot. You have the right to take it home and seek independent legal advice before signing away your rights.
- Preserve all relevant documents, including your employment contract, pay stubs, performance reviews, and the termination letter itself.
- Understand that the minimum notice and severance pay outlined in the Employment Standards Act, 2000 (ESA) are a floor, not a ceiling. You may be entitled to significantly more under common law.
- If you are offered a package, consult with an employment law professional to determine if it represents fair compensation for your specific situation before you accept it.
Featured Cases
N. v. Liquor Control Board of Ontario
2026 ONSC 5520 (CanLII) · 2026-10-01N. v. LCBO: Judicial Review of Termination Dismissed
This is a judicial review application concerning the termination of an employee by the Liquor Control Board of Ontario. The applicant sought to challenge the termination as an exercise of statutory power, but the Divisional Court found no jurisdiction for judicial review, noting the dispute was governed by a collective agreement and subject to grievance arbitration. The application was dismissed as frivolous, vexatious, and an abuse of process.
H. v. Cronos Group Inc.
2026 ONSC 5231 (CanLII) · 2026-09-16H. v. Cronos Group Inc. - Summary Judgment Dismissed
This is a procedural ruling on a motion for summary judgment in an employment dispute concerning stock options and termination agreements. The court dismissed the motion, finding that genuine issues for trial existed regarding the value of unexercised options, equitable set-off, and limitation periods, necessitating a full trial.
B. v. Van Dolder’s Home Team Inc.
2026 ONCA 568 (CanLII) · 2026-08-06Ontario CA: Termination Clause Enforceability Under ESA
The Court of Appeal for Ontario heard appeals regarding the enforceability of termination clauses in employment contracts under the Employment Standards Act, 2000. The court addressed whether phrases like 'at any time' and 'for any reason' invalidate without cause termination provisions and whether 'just cause' definitions broader than 'wilful misconduct' are enforceable when minimum ESA entitlements are preserved. The court allowed the appeal in B. and dismissed the appeal in Li, confirming that referential incorporation of ESA entitlements is acceptable and declining to reconsider the Waksdale precedent.
F. v. Sun Life Assurance Company of Canada
2026 ONSC 1855 (CanLII) · 2026-04-28F. v. Sun Life: Jurisdiction & LTD Dismissal
This case addresses whether a dispute arising from an employee's resignation and termination falls under exclusive arbitral jurisdiction via a collective agreement or can proceed as a civil claim for negligent misrepresentation. The court also examined whether an insurer's summary judgment regarding the termination of long-term disability benefits should be granted, finding genuine issues for trial regarding policy administration and credibility.
C. v. H. et al
2026 ONSC 2194 (CanLII) · 2026-04-13Fixed-Term Termination: Unenforceable Clauses & Liability
This case involves a determination on the enforceability of termination clauses in an employment contract and the remedies available for the early termination of a fixed-term agreement. The court found the termination provisions unenforceable due to non-compliance with minimum standards, applying principles from Waksdale v. Swegon North America. Additionally, the court confirmed the employee's entitlement to wages for the balance of the fixed term, citing Howard v. Benson Group Inc., and held individual defendants jointly and severally liable alongside the corporation following a default judgment.
S. v. Starbucks Coffee Canada Inc.
2026 ONSC 1030 (CanLII) · 2026-02-18Starbucks Settlement Enforceability: Repudiation & Duress
This is a summary judgment motion concerning the enforceability of a settlement agreement reached in the context of an employee's termination. The court addressed whether an email acceptance created a binding contract despite an unsigned release, whether the employer's erroneous 'for-cause' letter constituted repudiation, and whether the employee was subjected to financial duress. The motion judge found the settlement enforceable and dismissed the action.
O. v Direct Coil Inc.
2026 CanLII 77416 (ON SCSM) · 2026-01-26Dismissal for Cause: HR Employee Confidentiality Breach
This case addresses whether an employer had just cause to dismiss an HR employee for breach of confidentiality and dishonesty, applying the McKinley and Dowling standards regarding trust in sensitive positions. The court upheld the dismissal for cause, finding that the misuse of personnel records and repeated denials were incompatible with continued employment. Additionally, claims for aggravated damages based on the manner of dismissal and human rights discrimination were dismissed.
C. v. Cooling Tower Maintenance Inc.
2025 ONSC 7203 (CanLII) · 2025-12-23Settlement Agreement Repudiation & Lump Sum Dispute
This is a summary judgment decision regarding a dispute over a settlement agreement entered into upon the termination of employment. The court addressed whether the failure to disclose re-employment repudiated the agreement and whether the cessation of payments extinguished a fifty percent lump sum obligation. The court found that the agreement was not repudiated and that there was a breach for failing to pay the lump sum, ordering payment while dismissing the counterclaim for aggravated or punitive damages due to lack of evidence regarding heightened duties of loyalty.
B. v. Van Dolder’s Home Team Inc.
2025 ONCA 829 (CanLII) · 2025-12-01Ontario Appeal: Enforceability of ESA Termination Clauses
This is an appeal to the Court of Appeal for Ontario concerning the enforceability of termination provisions in employment contracts under the Employment Standards Act. The court addressed whether the appeal raised issues of broader public interest and granted leave to intervene to advocacy organizations to provide perspective on the impact of such clauses on vulnerable workers.
W. v. McMaster University
2025 ONSC 4930 (CanLII) · 2025-08-28Judicial Review: Tenured Professor Dismissal for Misconduct
This is a judicial review of a Hearing Committee's decision to remove a tenured professor for misconduct, including inappropriate relationships with students. The Divisional Court applied the reasonableness standard under Vavilov and found the decision to terminate employment was reasonable and proportionate.
G. v. C. and CSCNO
2025 ONSC 4902 (CanLII) · 2025-08-26This is a motion to strike and leave to amend proceeding concerning the jurisdiction of the court over employment-related claims. The plaintiff, whose employment was governed by a collective agreement, sought to challenge her termination and alleged a breach of the duty of fair representation by the union. The court determined that disputes arising from collective agreements and claims regarding the duty of fair representation fall under the exclusive jurisdiction of labour tribunals, such as the Ontario Labour Relations Board, rather than the courts.
B. v. Van Dolder’s Home Team Inc.
2025 ONCA 578 (CanLII) · 2025-08-06B. v. Van Dolder’s: Termination Clause Enforceability
This is an appeal to the Court of Appeal for Ontario concerning the enforceability of termination provisions in employment contracts and their compliance with the Employment Standards Act, 2000. The specific procedural issue addressed was whether the Ontario Chamber of Commerce and the Canadian Association of Counsel to Employers should be granted leave to intervene in the private dispute. The court considered the broader public policy implications of termination clauses and the test for intervention in private disputes raising significant public issues.
W. v. Facebook Canada Ltd.
2025 ONSC 4861 (CanLII) · 2025-07-08Facebook Canada: 10 Months Notice Awarded for Wrongful Dismissal
This case addresses the enforceability of termination clauses and the calculation of reasonable notice for an employee terminated without cause. The court analyzed compliance with the Employment Standards Act, the forfeiture of Restricted Stock Units, and the award of 10 months' notice while rejecting a claim for punitive damages.
B. v. M.
2025 ONSC 2365 (CanLII) · 2025-04-25Post-Termination Harassment & Confidentiality Injunction
This interlocutory proceeding addresses whether an injunction and Anton Piller order should be granted against a former employee who allegedly misused confidential information and harassed a senior executive after termination. The court applied the RJR-MacDonald test for injunctions and the Celanese test for Anton Piller orders, noting that the risk of irreparable harm is presumed in cases of misuse of confidential information. The case also considered Charter arguments regarding state action and awarded substantial indemnity costs due to the defendant's reprehensible conduct.
C. v. Township of Ignace
2025 ONSC 2506 (CanLII) · 2025-04-24Wrongful Dismissal: Adjournment Denied Pending Appeal
This is an interlocutory motion regarding whether a wrongful dismissal trial should be adjourned pending a related Supreme Court of Canada leave application. The plaintiff argued that the trial should proceed to adjudicate the enforceability of a termination provision independently, while the defendant sought a delay. The court denied the adjournment to avoid unnecessary delays and preserve judicial resources.
D.C. v. Arista Homes Limited
2025 ONCA 260 (CanLII) · 2025-04-03D.C. v. Arista Homes: ESA Compliance in Termination Clauses
This appeal concerns the enforceability of termination provisions in an employment contract under the Employment Standards Act, 2000. The Court of Appeal addressed whether clauses allowing termination for cause or without cause complied with statutory minimums, applying principles of statutory interpretation that favor employees and encourage compliance with the ESA.
B. v. Van Dolder’s Home Team Inc.
2025 ONSC 952 (CanLII) · 2025-02-11Enforceability of Termination Clauses: B. v. Van Dolder’s
This is a summary judgment motion in a wrongful dismissal case where the court examined the enforceability of the employment contract's termination provisions. The court found both the 'without cause' and 'with cause' termination clauses unenforceable because they failed to comply with the minimum standards of the Employment Standards Act (ESA), applying principles from Waksdale, Dufault, and Perretta. Consequently, the employer's motion for summary judgment was dismissed.
T. v. Aurora Hotel Group
2025 ONSC 703 (CanLII) · 2025-01-31Termination: Substantial Indemnity Costs for ESA Breaches
This is a costs ruling in a wrongful dismissal case where the plaintiff's employment was terminated without written notice or timely payment of statutory entitlements. The court determined that the defendants' egregious conduct in the termination process and their breaches of the Employment Standards Act, 2000, justified an award of substantial indemnity costs to mark the court's disapproval.
M. v. Enthusiast Gaming Inc.
2025 ONSC 654 (CanLII) · 2025-01-30Termination of Engagement: Fixed-Term Contract Dispute
This was a summary judgment motion concerning the termination of engagement and entitlement to unvested stock options. The court applied principles of contractual interpretation to determine that the plaintiffs' engagement was not a fixed-term contract, thereby dismissing their claim for damages related to unvested shares.
F. et al v. Wrestling Canada Lutte et al
2024 ONSC 7196 (CanLII) · 2024-12-20Termination Clause Interpretation: Appeal Allowed, Claim Struck
This is an appeal from a motion judge's decision regarding the interpretation of without cause termination and dispute resolution clauses. The Divisional Court allowed the appeal, finding the motion judge's findings inconsistent, and struck the claim because the termination was lawful and no dispute survived to be arbitrated under the Arbitration Act, 1991.