Wrongful Termination — Ontario Employment Law
Related Keywords
About Wrongful Termination
In Ontario, the term 'wrongful termination' can be confusing. Many people believe it means being fired for an unfair or unjust reason. However, in the eyes of the law, it's not about fairness—it's about lawfulness. An employer in Ontario can terminate an employee at any time for almost any reason, as long as it is not a discriminatory reason prohibited by the Ontario Human Rights Code (OHRC) and as long as they provide proper notice or pay in lieu of notice. A termination becomes 'wrongful' when an employer fails to meet these legal obligations.
While often used interchangeably with 'wrongful dismissal'—which specifically refers to an employer's failure to provide adequate termination notice under common law—'wrongful termination' can be viewed as a broader concept. It can encompass any termination that is illegal. This includes not only dismissals with insufficient notice but also terminations that are acts of reprisal. For example, under Ontario's Employment Standards Act, 2000 (ESA), it is illegal to fire an employee for asking about their rights, such as inquiring about overtime pay or taking a protected leave. Similarly, the Occupational Health and Safety Act (OHSA) prohibits employers from terminating an employee for reporting a workplace safety concern.
Furthermore, a termination is automatically wrongful if it is based on protected grounds under the OHRC, such as age, disability, family status, or ethnic origin. In these cases, the issue is not about the amount of notice, but about the discriminatory nature of the decision itself. Cases can become intricate, such as when an employee is misclassified as a contractor and then terminated without notice, as the entire basis of the employment relationship is in dispute. Because the reasons a termination may be unlawful can vary so widely, understanding your specific circumstances with the help of a professional can be crucial to determining your rights.
Frequently Asked Questions
What's the difference between wrongful termination and wrongful dismissal in Ontario?
The terms are often used interchangeably, but 'wrongful dismissal' specifically refers to not receiving enough termination notice or pay in lieu. 'Wrongful termination' can be a broader term for any illegal firing, including discriminatory terminations or illegal reprisals under the ESA or OHSA.
My boss fired me for a reason I think is totally unfair. Is that wrongful termination?
Not necessarily. In Ontario, employers don't need a 'fair' reason to terminate you, they just need a lawful one. Unless the termination was for a discriminatory reason or a reprisal, or if you weren't given proper notice/pay, it may not be considered legally 'wrongful'.
Can I be fired for asking about my rights under the Employment Standards Act?
No. The Employment Standards Act, 2000 contains anti-reprisal provisions. Firing an employee for exercising or inquiring about their ESA rights (like parental leave or overtime pay) is illegal and constitutes a form of wrongful termination.
What is the time limit to file a claim for wrongful termination in Ontario?
For a civil lawsuit (typically for insufficient notice), you generally have two years from the date of termination. However, for claims filed with the Ministry of Labour (ESA) or the Human Rights Tribunal of Ontario (OHRC), you have much shorter deadlines, often one year, so it's critical to act quickly.
My termination letter says I was fired 'for cause'. Is this wrongful termination?
It might be. 'Just cause' is a very high legal standard reserved for serious misconduct. If your employer alleges cause but cannot prove it in court, the termination is considered to be without cause, and you would be entitled to notice, making the dismissal wrongful if that notice was not provided.
When should I contact a lawyer about a possible wrongful termination?
You should consider contacting a lawyer as soon as possible after being terminated, especially before signing any documents. It's particularly important if you suspect the reason for your firing was discriminatory, a reprisal for asserting your rights, or if the severance package seems inadequate for your years of service.
Common Scenarios
- An employee is terminated shortly after notifying their manager they need to take a medical leave, with the employer citing 'corporate restructuring' as the reason.
- A long-term employee is let go without cause and offered only two weeks' pay, the minimum under the ESA, despite being entitled to many months of notice under common law.
- A worker who recently filed a formal complaint about workplace harassment is suddenly fired for 'poor performance', even though they have a history of positive reviews.
- An individual who has been working for a company for three years as an 'independent contractor' has their contract terminated effective immediately, with no payment in lieu of notice.
- A retail manager is fired the week after she asked the district manager why her team was not being paid for mandatory after-hours meetings.
What You Should Know
- Do not sign a release or full and final settlement offer from your employer without having it reviewed. You may be signing away rights to significant compensation.
- Preserve all relevant documents, including your employment contract, termination letter, pay stubs, and any emails or letters related to the circumstances of your dismissal.
- Carefully note the exact date of your termination, as this starts the clock on important legal deadlines for filing a claim, which can be as short as one year.
- Understand that a claim for wrongful termination is typically for financial damages, not to get your job back. The goal is to secure compensation for the notice you should have received or for the violation of your rights.
- If you suspect your termination was a reprisal or discriminatory, document every interaction and event leading up to the dismissal. A detailed timeline is invaluable when assessing a potential claim.
Featured Cases
Baker v. Fusion Nutrition Inc.
2022 ONSC 5814 (CanLII) · 2022-10-26Employee Misclassification and Wrongful Termination: Damages Awarded
A court case involving the misclassification of an employee as an independent contractor and the enforceability of a termination clause in a fixed-term contract. The court applied the Sagaz test and found the plaintiff to be an employee, invalidated the termination clause for non-compliance with the Employment Standards Act, and awarded damages for unpaid wages, vacation pay, and holiday pay. The court also dismissed claims for punitive and aggravated damages due to a lack of evidence of malicious or outrageous conduct.
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.
Rodgers v. CEVA
2015 ONSC 55 (CanLII) · 2015-01-05Wrongful Termination: Damages and Interest Awarded, Costs Fixed
A wrongful termination case where the plaintiff was awarded 14 months' notice and $10,770.09 in interest on the damage award. The court also fixed the plaintiff's costs at $42,000, excluding mediation costs.
King v. The Regional Municipality of Peel
2012 ONSC 1730 (CanLII) · 2012-04-24Wrongful Termination and Discrimination Case in Peel Region
A wrongful termination case where the court determined that the plaintiff was not wrongfully dismissed but was entitled to two weeks' pay in lieu of notice. The case also involved allegations of discrimination based on place of origin and pregnancy, which were found insufficient.
Sandid v. Komtech
2010 ONSC 4779 (CanLII) · 2010-10-12Consultant Wrongfully Terminated: Breach of Commission Agreement
A breach of contract case involving a consulting services agreement where the court determined that the defendant wrongfully terminated the plaintiff and breached the agreement by failing to pay commissions. The court also considered the admissibility of evidence and the calculation of commissions.
Oberoi v. Newtek Automotive Distribution Inc.
2010 ONSC 4093 (CanLII) · 2010-07-23Wrongful Termination Case: Employment Contract Breach and Damages Sought
A wrongful termination case where the plaintiff's employment was terminated without cause. The court will assess damages for salary, benefits, and notice period, applying employment law principles to determine the breach of the employment contract.
Patterson v. Lee Munro Chevrolet Ltd.
2009 CanLII 23113 (ON SC) · 2009-05-08Constructive Dismissal: Employee Awarded $67,697.68 in Damages
A wrongful dismissal case where the plaintiff alleged constructive dismissal after his employer advertised his position while he was on medical leave. The court found that the employer's conduct rendered continued employment untenable, entitling the plaintiff to damages for wrongful termination. The employer also claimed cause for dismissal based on performance and insubordination, but the court found these insufficient. The plaintiff was awarded $67,697.68 in damages for salary, commissions, and benefits.
Shekhdar v. K&M Engineering and Consulting Corporation
2008 CanLII 27483 (ON SC) · 2008-06-06Wrongful Termination: Independent Contractor Awarded 15 Days Pay in Lieu of Notice
A wrongful termination case involving an independent contractor whose engagement was terminated without 15 days’ notice. The court determined the plaintiff was not entitled to employee benefits, stock options, or a bonus due to unmet conditions, and dismissed claims for additional damages including punitive, aggravated, and Wallace damages.
Williams v. Scotia Investments Ltd.
1994 CanLII 10533 (ON SC) · 1994-11-07Employment Contract Dispute: Pension Entitlements After Wrongful Termination
A merits decision involving an employment contract dispute where an employer terminated an employee without cause and denied pension benefits. The court rejected the employer's interpretation of the contract, applied the contra proferentem rule in favor of the employee, and held the employer liable for pension obligations.
Walker v. Copp Clark Publishing Co. Ltd. et al.
1962 CanLII 224 (ON SC) · 1962-03-19Employment Contract Dispute: Statute of Frauds and Breach of Contract
A breach of employment contract case involving the interpretation of multiple documents to determine if they satisfied the Statute of Frauds and established a valid employment contract. The plaintiff claimed wrongful termination of a five-year employment contract and sought damages, which were calculated based on net salary after deductions.