Wrongful dismissal — Ontario Employment Law
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About Wrongful dismissal
In Ontario, the term 'wrongful dismissal' can be misleading. It doesn't necessarily mean your employer's reason for firing you was wrong, unfair, or immoral. Instead, wrongful dismissal is a legal term for a breach of contract that occurs when an employer terminates an employee without providing sufficient notice of termination or pay in lieu of that notice.
Every employment relationship in Ontario, unless there's a specific, enforceable contract stating otherwise, has an implied term of 'reasonable notice.' This means if an employer wants to terminate you without 'just cause' (a very high standard of employee misconduct), they must either let you continue working for a certain period (the notice period) or pay you the salary and benefits you would have earned during that period. A wrongful dismissal happens when the employer fails to provide this reasonable notice.
It's crucial to distinguish between the minimum notice and severance entitlements under Ontario's Employment Standards Act, 2000 (ESA) and your rights under common law. The ESA provides a basic safety net, offering a formula of roughly one week of pay per year of service, up to a maximum. However, common law reasonable notice is often substantially longer, taking into account factors like your age, seniority, role, and the availability of similar employment. Many wrongful dismissal claims arise because an employer only pays the ESA minimums, ignoring the employee's much larger common law entitlement. For example, a 55-year-old manager with 15 years of service might be entitled to only 8 weeks of termination pay under the ESA, but common law could potentially award them 12-18 months of notice. Understanding this difference is the first step in determining if you have a claim. Because the calculation of reasonable notice is specific to each individual's circumstances, getting professional guidance can help clarify what you may be truly owed.
Frequently Asked Questions
Is it wrongful dismissal if my boss fired me for a reason I think is unfair?
Not necessarily. In Ontario, employers can terminate employees for almost any reason, or no reason at all, as long as it's not discriminatory. A dismissal becomes 'wrongful' if they fail to provide adequate notice or pay in lieu, not because their business reason was unfair.
How is wrongful dismissal different from the 'termination pay' on my last pay stub?
Termination pay under the Employment Standards Act, 2000 (ESA) is the statutory minimum your employer must provide. A wrongful dismissal claim is based on common law, which often provides for a much longer 'reasonable notice' period and therefore significantly more compensation than the ESA minimums.
How long do I have to sue for wrongful dismissal in Ontario?
Under Ontario's Limitations Act, 2002, you generally have two years from the date you were dismissed to file a lawsuit for wrongful dismissal. Missing this deadline can permanently bar your claim, so it's critical to act in a timely manner.
My contract says I only get 2 weeks' notice. Is that all I can get?
It depends. Termination clauses in employment contracts are often challenged and found to be unenforceable by courts. If the clause is not drafted perfectly to comply with the law, you may still be entitled to full common law reasonable notice.
What kind of money can I get in a wrongful dismissal lawsuit?
Damages are intended to compensate you for what you would have earned during the reasonable notice period. This includes not just your salary, but also the value of benefits, bonuses, commissions, and pension contributions you lost.
Do I have to look for a new job after being fired?
Yes. You have a legal 'duty to mitigate' your damages by making reasonable efforts to find comparable new employment. Any income you earn from a new job during the notice period will typically be deducted from the damages your former employer owes you.
When should I talk to an employment lawyer about a potential wrongful dismissal?
You should consult a lawyer as soon as you are terminated and before you sign any release or accept a severance package. An initial offer may only represent your minimum rights under the ESA, and a lawyer can help you understand your full entitlements at common law.
Common Scenarios
- A long-service employee with 22 years at a manufacturing plant is let go during a 'restructuring' and offered only the 8 weeks of pay required by the ESA.
- A recently hired marketing director is terminated without cause after 18 months and is told they're not entitled to a package because they were still 'new'.
- An employee receives a termination letter offering a 'severance package' but is given only 48 hours to sign a release that prevents them from suing the company for any reason.
- A company fires a salesperson 'for cause' for not meeting sales targets, providing no evidence of serious misconduct or a history of progressive discipline.
- A senior executive is terminated and receives a significant payment, but it doesn't include the substantial annual bonus they would have earned during the notice period.
What You Should Know
- Do not sign any termination documents, severance offers, or a 'Full and Final Release' until you have had them reviewed by a legal professional. You could be signing away your rights to significant compensation.
- Immediately begin documenting your job search efforts, including applications sent, interviews attended, and networking events. This is essential to prove you are meeting your 'duty to mitigate'.
- Request a copy of your employment contract and your Record of Employment (ROE) from your employer. The ROE's reason for dismissal (Code A - Shortage of work/discontinuance of a job) can be important evidence.
- Understand that a wrongful dismissal claim is primarily about getting compensation for the lack of proper notice, not about getting your job back or punishing the employer for an unfair decision.
- Consult with an Ontario employment lawyer promptly. There is a strict two-year limitation period to file a claim, and an expert can quickly assess the difference between the company's offer and what you may be owed under common law.
Featured Cases
Warren v. Canaccord Genuity Corp.
2026 ONSC 547 (CanLII) · 2026-01-28Wrongful Dismissal: 21-Month Notice Period and Mitigation Considered
A wrongful dismissal case involving a Managing Director investment banker who was terminated. The court determined a 21-month notice period and awarded bonuses during the notice period. Mitigation and credits were considered, reducing overall damages.
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.
Pascuet v. Sky Service
2025 ONSC 6143 (CanLII) · 2025-10-31Wrongful Dismissal: Claim Dismissed as Statute-Barred
A motion for summary judgment was granted in a wrongful dismissal case where the plaintiff's claim was dismissed as statute-barred under the Limitations Act, 2002. The court applied the discoverability doctrine and ruled that the limitation period began on the date of termination, and the plaintiff failed to rebut the presumption under s. 5(2) of the Limitations Act, 2002.
Ferguson v. Yorkwest Plumbing Supply Inc.
2025 ONSC 5408 (CanLII) · 2025-09-23Wrongful Dismissal: Plaintiff Awarded $170,415.42 in Damages and $6,879 in Costs
A wrongful dismissal case where the plaintiff was awarded $170,415.42 in damages, including $60,000 in unpaid commissions, for a six-month notice period. The court also awarded $6,879 in costs for a successful motion for default judgment.
Carroll v. Oracle Canada ULC
2025 ONSC 4889 (CanLII) · 2025-08-26Wrongful Dismissal: 12 Months' Notice, $57,740.55 in Punitive Damages
A wrongful dismissal case involving a Global Strategic Client Executive with short service and high income. The court awarded 12 months' notice based on Bardal factors, denied damages for lost Restricted Stock Units, awarded benefits and RRSP contributions, and granted $57,740.55 in punitive damages for delayed commission payments.
Chan v. NYX Capital Corp.
2025 ONSC 4561 (CanLII) · 2025-08-06Wrongful Dismissal: Probationary Employee Entitled to Notice
A wrongful dismissal case where the plaintiff, terminated one day before the end of a probationary period, was awarded three months' notice based on Bardal factors. The court found the termination clause void for non-compliance with the Employment Standards Act, and no aggravated or punitive damages were awarded due to the employer's conduct not being high-handed or malicious.
Grealy v. XL Tool Inc.
2025 ONSC 4010 (CanLII) · 2025-07-09Wrongful Dismissal: Inducement and Notice Period Determined
A wrongful dismissal case where the court determined whether the plaintiff was entitled to an enhanced notice period due to inducement and applied Bardal factors to determine a 12-week notice period. The court also considered punitive damages for alleged bad faith, finding no entitlement.
Paul v. Sensient Colors
2025 ONSC 3127 (CanLII) · 2025-05-26Wrongful Dismissal: Employee Terminated for Non-Compliance with Vaccination Policy
A wrongful dismissal case where an employee was terminated for non-compliance with the employer's COVID-19 vaccination policy. The court found no just cause for termination and awarded 12 months' notice and $182,822.84 in damages, applying Bardal factors.
William Williamson v. Brandt Tractor Inc.
2025 ONSC 2571 (CanLII) · 2025-05-01Wrongful Dismissal: 18-Year Employee Awarded 17 Months Notice
A wrongful dismissal case involving a long-term employee who was terminated after 18 years of service. The court found the termination unjustified due to insufficient evidence of serious misconduct and set the reasonable notice period at 17 months. The case also addressed the admissibility of hearsay evidence and the duty to mitigate damages. Punitive damages were not awarded due to a breach of the Employment Standards Act, 2000.
Jones v. Strides Toronto
2025 ONSC 2482 (CanLII) · 2025-04-23Wrongful Dismissal: Termination Clause Unenforceable Due to Ambiguity
A wrongful dismissal case where the plaintiff, employed for 16 months, was terminated without cause. The court found the termination clause unenforceable due to ambiguity and potential conflict with the Employment Standards Act, 2000. The plaintiff was awarded four months' notice based on common law principles. Summary judgment was granted in the plaintiff's favor.
Salam v. Ontario Research and Innovation Network
2025 ONSC 1839 (CanLII) · 2025-04-01Wrongful Dismissal: Plaintiff Awarded Six Months' Notice and Commissions
A wrongful dismissal case where the plaintiff was terminated without cause after two years and three months of service. The court awarded six months' notice, loss of benefits, and commissions during the notice period, totaling $58,419.52 less statutory deductions, based on the Bardal factors and the original employment agreement.
Cullain v. Wilcox et al
2025 ONSC 1739 (CanLII) · 2025-03-19Wrongful Dismissal: Senior VP Terminated After 7 Years, Awarded 12 Months Notice
A wrongful dismissal case involving a senior management employee who was terminated from employment as Vice President of Operations. The court determined that 12 months was reasonable notice for a senior employee with seven years of service and awarded damages for wrongful dismissal, applying Bardal factors.
Miller v. Alaya Care Inc.
2025 ONSC 1028 (CanLII) · 2025-02-14Wrongful Dismissal: 14-Month Notice Period Awarded
A wrongful dismissal case where the plaintiff was terminated without cause after seven months of employment. The court determined a 14-month notice period using common law factors and awarded damages for lost salary, benefits, bonuses, and RSUs. The termination clauses in the employment agreement were found unenforceable due to non-compliance with the Employment Standards Act, 2000.
Shelp v. GoSecure Inc.
2025 ONSC 49 (CanLII) · 2025-01-02Wrongful Dismissal: 51-Year-Old VP of Sales Awarded 6 Months' Notice and Commissions
A wrongful dismissal case involving a 51-year-old Vice President of Sales who was dismissed after 10 months of employment. The court applied Bardal factors to determine a 6-month reasonable notice period and awarded sales commissions as part of the damages. The court found no inducement by the defendant to leave prior secure employment.
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.
2551965 Ontario Ltd. v. Warkentin
2024 ONSC 4876 (CanLII) · 2024-09-04Wrongful Dismissal: Just Cause for Termination and Reasonable Notice
A case where an employee was dismissed for just cause due to verbal threats and breach of duty. The court assessed the reasonableness of the notice period and found restrictive covenants unenforceable, denying punitive damages.
Marshall v. Mercantile Exchange Corporation
2024 CanLII 71128 (ON SC) · 2024-07-24Wrongful Dismissal Case Involving Damages and Mitigation
A wrongful dismissal case where the court addressed damages and the employee's duty to mitigate. The case also involved a medical examination and the application of the Courts of Justice Act.
Walter v. Birks Group Inc.
2024 ONSC 3626 (CanLII) · 2024-06-24Wrongful Dismissal: Reasonable Notice for 30-Year Sales Associate
A wrongful dismissal case where the court assessed whether the dismissal for cause was justified, applied the contextual approach from McKinley v. BC Tel, and determined the appropriate notice period for a long-service sales associate. The court also addressed employment standards claims and a counterclaim related to a promissory agreement.
Dawkins v. Precision Resource Canada Ltd.
2024 ONSC 3514 (CanLII) · 2024-06-18Wrongful Dismissal Case Involving Employee of Precision Resource Canada Ltd.
A wrongful dismissal case where an employee of Precision Resource Canada Ltd. is seeking damages. The procedural posture involves civil procedure and documents related to disclosure and production.
Gazier v. Ciena Canada, ULC
2024 ONSC 865 (CanLII) · 2024-02-08Wrongful Dismissal: 22-Year Employee Awarded 24 Months Notice and Benefits
A wrongful dismissal case involving a 58-year-old employee with 22 years of service. The court determined a 24-month notice period was reasonable, awarded damages for lost bonuses based on actual performance, and compensated for lost benefits and vacation pay. Mitigation efforts were found to be reasonable.