Termination of Employment — Ontario Employment Law
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About Termination of Employment
The termination of employment marks the legal end of the relationship between an employer and an employee in Ontario. While many people associate this with being 'fired,' the process can unfold in several distinct ways, each with its own set of rules and entitlements. Understanding these distinctions is the first step for any worker navigating this challenging event.
The most common form is a termination 'without cause.' In this scenario, an employer can end your employment for almost any business reason, as long as it is not discriminatory under the Ontario Human Rights Code (OHRC). However, this right comes with a crucial obligation: the employer must provide you with either advance written notice of the termination, pay in lieu of that notice, or a combination of both. The minimum amount of notice or pay is set by the Employment Standards Act, 2000 (ESA). For many employees, particularly those with longer service, the common law may provide for a significantly longer 'reasonable notice' period. This is often the central issue in wrongful dismissal claims.
Less common is a termination 'for cause.' This is when an employer terminates an employee for serious misconduct, such as theft, fraud, or serious insubordination, without providing any notice or pay in lieu. The legal bar for establishing 'just cause' is extremely high, and employers who fail to meet it may be found to have wrongfully dismissed the employee.
Employment can also end through an employee's resignation or through a legal doctrine called 'frustration of contract,' which may occur if an employee becomes permanently unable to work due to a long-term illness or disability. Even in these cases, an employer's duties, especially the duty to accommodate under the OHRC, remain a critical consideration. Because the facts surrounding a termination dictate your rights and potential entitlements, having your specific situation assessed by a legal professional can provide crucial clarity.
Frequently Asked Questions
What is the difference between being laid off and being terminated in Ontario?
A termination is a permanent end to the employment relationship. A temporary layoff under the Employment Standards Act, 2000 (ESA) is a temporary interruption of work. However, if a layoff exceeds the time limits set by the ESA or if your contract doesn't permit layoffs, it can be treated as a termination.
Can my employer fire me for no reason at all in Ontario?
Yes, this is called a termination 'without cause.' Your employer can terminate your employment for business reasons, but they must provide you with proper notice or pay in lieu of notice, according to the ESA and potentially the common law. They cannot, however, terminate you for discriminatory reasons.
Do I have to sign my termination papers or severance offer right away?
No, you are not required to sign anything immediately. These documents often contain a 'release' that prevents you from seeking further compensation. It is highly advisable to have any termination offer reviewed by an employment lawyer before you sign.
How much notice is my employer required to give me?
The Employment Standards Act, 2000 sets out the minimum notice period based on your years of service. However, you may be entitled to a longer 'reasonable notice' period under common law, which considers factors like your age, role, salary, and length of service.
What happens to my benefits after my employment is terminated?
During the statutory notice period under the ESA, your employer must continue your benefit contributions. If you are entitled to a longer common law notice period, you are generally entitled to compensation for the value of those lost benefits for the full duration of that period.
Is there a deadline to sue for wrongful dismissal after being terminated?
Yes. In Ontario, you generally have two years from the date of your termination to file a civil lawsuit for wrongful dismissal, as per the Limitations Act. It is critical to act promptly to ensure you do not miss this deadline.
My termination feels unfair, but they gave me some pay. When should I talk to a lawyer?
You should consider speaking with a lawyer as soon as possible, especially if the offer seems low or you suspect the reason for termination was discriminatory. An initial offer from an employer often only covers the minimums required by the ESA, and you may be entitled to significantly more under common law.
Common Scenarios
- A marketing manager with 12 years of service is terminated during a company-wide 'restructuring' and offered 8 weeks' pay, the statutory minimum.
- An employee is fired 'for cause' due to alleged poor performance, despite having received positive performance reviews in the past and no formal warnings.
- A construction worker is told their employment is ending because the company's project has concluded, and they are not offered any notice or termination pay.
- An administrative assistant on a one-year fixed-term contract is let go after six months with no explanation or payout for the remainder of the contract term.
- An employee quits after their employer unilaterally cuts their salary by 25%, believing they have no choice but to leave.
What You Should Know
- Never sign a termination offer or 'Full and Final Release' document on the spot. Always take it home and seek legal advice to understand what rights you may be signing away.
- Gather and preserve all relevant employment documents, including your employment contract, pay stubs, performance reviews, and any written correspondence about your termination.
- Understand the key difference between your minimum entitlements under the Employment Standards Act, 2000 (like termination and severance pay) and your potentially greater entitlements to common law reasonable notice.
- If you believe your termination was connected to your age, disability, family status, or another protected ground, document the reasons for your suspicion and consult a lawyer about a potential Human Rights Code violation.
- Be mindful of the strict two-year limitation period to commence a lawsuit for wrongful dismissal in Ontario, which starts from the date your employment was terminated.
Featured Cases
Shynkarova v. 2554318 Ontario Ltd. O/a Tax Mechanic
2025 ONSC 6478 (CanLII) · 2025-11-10Wrongful Termination: Bardal Factors and Damages Awarded
A wrongful termination case involving an employee who was terminated nine days before the one-year anniversary of their employment. The court considered Bardal factors and awarded damages for lost benefits and additional notice. The case also addressed procedural issues related to a self-represented corporate defendant and the awarding of substantial indemnity costs.
Gaudette v. Charles and CSCNO
2025 ONSC 4902 (CanLII) · 2025-08-26Employment Jurisdiction Case: Labour Tribunals vs Court
A court case addressing jurisdictional issues in employment disputes, including the exclusive jurisdiction of labour tribunals over claims arising from collective agreements and employment terminations. The court ruled that claims related to employment disputes fall under the exclusive jurisdiction of labour tribunals.
Johnstone v. Loblaw
2025 ONSC 4755 (CanLII) · 2025-08-18Employment Dispute: Settlement Agreement and Summary Judgment
A civil procedure case involving the interpretation of a settlement agreement and the admissibility of an affidavit in an employment dispute. The court determined whether the agreement was binding and whether a release clause barred claims related to a failed house purchase. Summary judgment was deemed appropriate to resolve the dispute.
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.
Kondaj v. Crossbridge Condominium Services Ltd.
2025 ONSC 3905 (CanLII) · 2025-06-30Termination of Employment: Common Law Notice and Statutory Interpretation
A case involving the termination of employment where the court determined that the incoming service provider was liable for common law notice to the plaintiff. The court also addressed the interpretation of successor employer provisions and the application of reasonable notice principles, including mitigation of damages and the enforceability of termination clauses.
Boyle v. Salesforce.com
2025 ONSC 2580 (CanLII) · 2025-04-28Termination of Employment: Notice Period, Mitigation, and ESA Compliance
A wrongful dismissal case involving an employee terminated after eight years of service. The court determined a notice period of eight months, addressed bonuses and benefits during the notice period, and found no evidence of bad faith. The termination clause was found ambiguous and non-compliant with employment standards legislation, leading to the invalidation of the entire termination provision.
Teljeur v. Aurora Hotel Group
2025 ONSC 703 (CanLII) · 2025-01-31Termination Case: Substantial Indemnity Costs Awarded for Egregious Conduct
A case involving the termination of employment where the plaintiff's employment was ended without proper notice or timely payment of entitlements under the Employment Standards Act, 2000. The court awarded substantial indemnity costs to the plaintiff due to the defendants' egregious conduct during the dismissal process.
Timmins v. Artisan Cells
2025 CanLII 2387 (ON SC) · 2025-01-07Senior Employee Termination: Nine Months' Notice and Joint Liability
A senior employee in a niche industry was terminated without cause and received nine months' notice based on age, tenure, and limited comparable opportunities. The court also addressed ESA compliance, repudiation of the employment contract, and joint and several liability of two corporate entities. Punitive damages were not awarded due to insufficient evidence of malice.
Silliphant v. Eastern Ontario Regional Laboratories
2024 ONSC 6363 (CanLII) · 2024-11-18Wrongful Dismissal: Jurisdictional Dispute Over Employment Termination
A jurisdictional dispute over the termination of employment and wrongful dismissal, involving human rights grievances and the application of specific legal rules and precedents.
Summers v. Oz Optics Limited
2022 ONSC 6225 (CanLII) · 2022-11-03Termination of Employment: Common Law Notice and Mitigation
A case involving the termination of employment after 3.5 years of service for a 61-year-old employee in a specialized technical position. The court determined the appropriate common law notice period, found the employee's mitigation efforts reasonable, and ruled that a non-compliant termination clause is void, entitling the employee to full common law notice.
Adejuyigbe v. Torstar et al.
2022 ONSC 4447 (CanLII) · 2022-07-28Racial Discrimination and Employment Termination: Case Summary
A civil procedure case involving claims of racial discrimination and termination of employment. The court struck the plaintiff's statement of claim for lack of a reasonable cause of action and found the release agreement to be a full answer to the claim. The court also did not need to decide if the claim was statute-barred due to limitation periods.
Flack v. Whiteoak Ford Lincoln Sales Limited
2021 ONSC 7176 (CanLII) · 2021-11-16Wrongful Dismissal: Reasonable Notice Determined for 61-Year-Old Employee
A wrongful dismissal case involving a 61-year-old employee with nine months of service who was terminated without cause. The court determined that two months' notice was reasonable based on Bardal factors, including the character of employment, length of service, age, and availability of similar employment. The court also ruled that the economic impact of COVID-19 should not influence the determination of reasonable notice.
Ewach v. Whiteoak Ford Lincoln Sales Limited
2021 ONSC 7206 (CanLII) · 2021-11-16Termination Case: 61-Year-Old Salesperson's Notice Period and Mitigation Efforts
A case involving the termination of a 61-year-old salesperson's employment without cause. The court determined a 2.5-month notice period was reasonable, rejecting the plaintiff's arguments related to age and the pandemic. The court also found the plaintiff's mitigation efforts insufficiently documented but not material given the short notice period.
Bayes v. RBC
2021 ONSC 6836 (CanLII) · 2021-10-14Employment Termination: Release Agreement and Duty of Good Faith
A case involving the termination of employment where the plaintiff was terminated without cause and signed a release agreement. The court granted summary judgment in favor of the defendants, finding the release agreement enforceable and that the employer fulfilled its duty of good faith during the termination process.
Ojo v Crystal Claire Cosmetics Inc.
2021 ONSC 1428 (CanLII) · 2021-02-26Employment Termination Clause Unenforceable: Three Months' Notice Awarded
A case where an employment termination clause was found unenforceable for failing to meet statutory requirements, and the court determined the appropriate reasonable notice period using Bardal factors. The plaintiff was awarded three months' notice, and the court also addressed the employee's duty to mitigate damages and the entitlement to a pro-rated bonus.
Marazzato v Dell Canada Inc.
2021 ONSC 248 (CanLII) · 2021-01-12Wrongful Dismissal: Senior Executive Awarded 18 Months Notice and Damages
A wrongful dismissal case where a senior executive with 14 years of service was terminated without cause. The court applied Bardal factors to determine 18 months' notice, included STI and LTI in damages, and imposed a trust and accounting order for proper accounting of mitigation earnings.
Hoang v. Mann Engineering Ltd.
2019 ONSC 6383 (CanLII) · 2019-11-04Wrongful Termination Case: Garnishment Proceedings and Causation
A summary judgment was granted to the defendants in Hoang v. Mann Engineering Ltd., dismissing the plaintiff's claim of wrongful termination. The court found that the termination was due to the plaintiff's surreptitious conduct, not the defendants' actions in enforcing a court costs order via garnishment proceedings.
Welton v. United Lands Corporation Limited
2019 ONSC 3623 (CanLII) · 2019-06-28Unpaid Commissions and Technical Audit Work: Court Dismisses Claim
A wrongful dismissal case where the court determined that the plaintiff was not entitled to unpaid commissions or technical audit work compensation based on the lack of enforceable agreements and contemporaneous documentation. The court applied quantum meruit principles and found no reasonable expectation of payment.
Sproule v. Tony Graham Lexus Toyota
2018 ONSC 3955 (CanLII) · 2018-06-28Wrongful Dismissal: 16-Year Employee's Claim Dismissed
A wrongful dismissal case where the plaintiff, with 16 years of employment, alleged he was dismissed, while the defendants argued he abandoned his position. The court found genuine issues requiring a trial and dismissed the summary judgment motion, finding no evidence to support the defendants' counterclaim for inconvenience damages.
Wickens v. Chambers Insurance
2018 ONSC 905 (CanLII) · 2018-03-08Constructive Dismissal Case: Voluntary Retirement vs Wrongful Dismissal
A constructive dismissal case where the plaintiff alleged he was constructively or wrongfully dismissed after changes in benefits and reduced pay. The court found that the plaintiff voluntarily retired, and no constructive or wrongful dismissal occurred. The court also considered potential damages based on the remaining contract term, but ultimately determined no dismissal had taken place.