Unjust Dismissal — Ontario Employment Law
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About Unjust Dismissal
When an employee in Ontario is unexpectedly let go, they often describe the situation as an "unjust dismissal." While being fired without a good reason often feels unfair or unjust, in the realm of employment law, the phrase actually has a very specific legal meaning. It depends entirely on whether your workplace is federally or provincially regulated.
For the vast majority of workers in Ontario, employment is governed provincially by the Employment Standards Act, 2000 (ESA) and common law. Under provincial law, an employer does not actually need a "just" or fair reason to let you go. This is known as a termination without cause. As long as the dismissal is not discriminatory under the Ontario Human Rights Code (OHRC) or an illegal reprisal under the Occupational Health and Safety Act (OHSA), a provincial employer is legally allowed to terminate your employment, provided they give you your required termination pay and severance. If they fail to provide the correct financial package, a provincial employee pursues a claim for "wrongful dismissal."
However, if you work in a federally regulated industry in Ontario—such as banking, telecommunications, broadcasting, or interprovincial transport—the rules are drastically different. Under Part III of the Canada Labour Code, non-unionized federal employees with at least 12 months of continuous service are legally protected against being fired without cause. For these workers, an "unjust dismissal" is a formal statutory complaint. Unlike provincial wrongful dismissal claims (which primarily deal with securing compensation in lieu of notice), the federal unjust dismissal framework actually allows an adjudicator to order reinstatement, meaning an employee could get their job back along with back pay.
Understanding which legal framework governs your job is the critical first step after a termination, as pursuing the wrong type of claim will waste valuable time. Because the legal avenues and potential remedies vary so significantly depending on your employer's jurisdiction, having your unique employment background reviewed by a qualified legal advisor is the safest way to ensure your rights are protected.
Frequently Asked Questions
What is the difference between unjust dismissal and wrongful dismissal in Ontario?
Wrongful dismissal generally applies to provincially regulated workers who were fired without receiving their proper common law notice or statutory severance. Unjust dismissal is a specific legal complaint under the Canada Labour Code for federally regulated workers who are terminated without just cause, which can potentially lead to job reinstatement.
Can my employer fire me for no reason in Ontario?
If you work in a provincially regulated business, your employer can terminate your employment without a reason, provided they pay you the appropriate severance and are not violating human rights laws. If you work in a federally regulated sector and have 12 months of service, your employer generally needs just cause to fire you, or you can claim unjust dismissal.
Is there a time limit to file an unjust dismissal complaint?
Yes. If you fall under federal jurisdiction and are eligible to claim unjust dismissal under the Canada Labour Code, you must file your complaint within 90 days of the date of your dismissal. This is a very strict deadline that is much shorter than the two-year limitation period for a standard civil lawsuit in Ontario.
Can I get my job back if I file for unjust dismissal?
If you are a federally regulated employee who successfully proves an unjust dismissal under the Canada Labour Code, an adjudicator has the authority to reinstate you to your former position with back pay. By contrast, provincial employees pursuing wrongful dismissal suits in Ontario courts receive financial compensation but are almost never reinstated.
What if I haven't worked at my federal job for a full year?
To qualify for the statutory unjust dismissal protections under the Canada Labour Code, you must have completed at least 12 consecutive months of employment. If you are terminated before this milestone, you cannot use this specific complaint process, though you may still have rights to standard termination notice or severance.
When should I speak to an employment lawyer about my termination?
Because determining whether a workplace is federally or provincially regulated can be complex, and because federal unjust dismissal complaints require action within 90 days, you should consult an employment lawyer immediately after being let go to confirm exactly which set of legal rights applies to you.
Common Scenarios
- A non-unionized teller at a major Canadian bank in Toronto is fired without cause after three years of service. Because banking is a federally regulated industry, she files an unjust dismissal complaint under the Canada Labour Code rather than suing for wrongful dismissal in an Ontario court.
- A graphic designer at an advertising agency is let go because his manager "didn't like his attitude" and wants to sue for unjust dismissal. He learns from a lawyer that because he is a provincially regulated worker, his employer didn't need a legally fair reason to fire him, so his proper recourse is a wrongful dismissal claim for adequate severance.
- An administrative assistant at a telecommunications firm is terminated shortly after informing her manager about a disability accommodation requirement. Since she is federally regulated with over a year of service, she explores an unjust dismissal complaint on top of alleging human rights violations.
- A provincially regulated retail manager with six months of service is stunned when they are terminated without warning. Recognizing they don't qualify for federal unjust dismissal protections, they instead focus on obtaining their basic common law notice entitlements.
What You Should Know
- Immediately identify your employer's jurisdiction (federal vs. provincial), as this completely changes the legal remedies available to you after a termination.
- If you believe you qualify to file a federal unjust dismissal claim, act quickly—you must initiate the complaint within a very tight 90-day window from the dismissal date.
- If you are provincially regulated and feel your firing was unfair, look closely to see if the termination was secretly motivated by discrimination or because you raised safety concerns, which could trigger remedies under the OHRC or OHSA.
- Do not sign a severance offer simply because you feel you have no other choice; have an employment professional examine your case to evaluate whether an unjust dismissal or wrongful dismissal approach offers a better path forward.
Featured Cases
CTS (ASDE) Inc. v. Labourers’ International Union of North America et al
2023 ONSC 1640 (CanLII) · 2023-03-13Judicial Review: Unjust Dismissal & Discrimination
This is a judicial review application brought by an employer challenging a Labour Relations Board decision that found an employee's dismissal unjust and influenced by racial discrimination. The Board had determined that race was a factor in the termination despite the employer's allegations of just cause based on workplace incidents and insubordination. The Divisional Court reviewed whether the Board's findings on just cause and discrimination were reasonable under the Vavilov framework.
V.W. v Thumper Massager Inc.
2017 ONSC 4436 (CanLII) · 2017-07-20Probationary Employee Unjust Dismissal Claim
This is a wrongful dismissal case involving a probationary employee who brought a claim for unjust dismissal. The court addressed the legal standards applicable to probationary employment and considered issues regarding costs on a substantial indemnity basis.
Greater Toronto Airports Authority v. Public Service Alliance Canada Local 004
2011 ONSC 487 (CanLII) · 2011-01-28Judicial Review: Unjust Dismissal Damages in Labour Arbitration
This is a judicial review of a labour arbitration award regarding unjust dismissal in a unionized setting. The Divisional Court examined the reasonableness of the arbitrator's awards for economic loss, mental distress, and punitive damages, as well as procedural fairness issues regarding the notice of punitive damages.
Ontario Public Service Employees Union v. Seneca College of Applied Arts & Technology
2006 CanLII 14236 (ON CA) · 2006-05-04The Court of Appeal for Ontario reviewed a labour arbitration board's decision that it lacked jurisdiction to award aggravated or punitive damages for tort-like claims arising from an unjust dismissal. The court applied the Weber v. Ontario Hydro principle to determine arbitrability and assessed the appropriate standard of review for the board's jurisdictional decision.
Ontario Public Service Employees Union v. Seneca College of Applied Arts and Technology
2004 CanLII 36140 (ON SCDC) · 2004-11-01Judicial Review: Arbitrator Jurisdiction for Damages
This is a judicial review of a Board of Arbitration's decision regarding its jurisdiction to award aggravated and punitive damages in an unjust dismissal grievance. The Divisional Court applied the standard of correctness to the question of jurisdiction, determining that while the Board had the power to award such damages, the matter was remitted to the Board to determine the quantum of damages.
P. v. Eden Park Merchandising Solutions
2004 CanLII 8025 (ON SC) · 2004-04-01This is an employment law case involving a claim of unjust dismissal. The dispute centers on the termination of the employee's employment.
G. v. Jo-Del Investments Ltd.
2003 CanLII 48118 (ON CA) · 2003-09-03Wrongful Dismissal: Just Cause and Condonation
This is an appeal to the Court of Appeal for Ontario from a trial judge's decision regarding a wrongful dismissal. The employee sued the employer, but the trial judge found that taking a lengthy vacation without notice despite a clear warning justified termination for cause. The employee appealed, arguing the employer condoned his conduct by initially claiming the dismissal was for restructuring and offering severance pay. The Court of Appeal dismissed the appeal, ruling that the employer's initial actions were out of generosity and did not show an intention to condone the misconduct. The dismissal of the employee's action without damages stands.
L. (Bankruptcy of) (Re)
2000 CanLII 16846 (ON CA) · 2000-09-06Bankruptcy of Employee: Unjust Dismissal Claim & Trustee Standing
This appeal addresses whether an unjust dismissal claim and resulting award constitute property of a bankrupt employee's estate under the Bankruptcy and Insolvency Act, and whether exemptions apply. It also considers a trustee's standing to intervene in Canada Labour Code proceedings to claim arbitration costs incurred by the bankrupt.
H. v. T.
1998 CanLII 4663 (ON CA) · 1998-07-13This is a damages ruling in an employment law case concerning unjust dismissal. The Court of Appeal for Ontario addressed the issue of damages awarded for the wrongful termination of an employee.
O. (Y.) v. Belleville (City) Chief of Police (Gen. Div.)
1991 CanLII 7058 (ON SC) · 1991-04-11Unjust Dismissal: Conditional Employment Offer Withdrawn After Youth Record Disclosure
A case involving a claim of unjust dismissal where the plaintiff was offered conditional summer employment subject to a police record check. The employer withdrew the offer after disclosure of the plaintiff's youth record. The court dismissed the claim for unjust dismissal, finding no valid employment relationship had been established.