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
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.
Ghazvini et al v. Canadian Imperial Bank Of Commerce
2025 ONSC 5218 (CanLII) · 2025-09-25Termination Provisions Unenforceable: Reasonable Notice and Damages Awarded
A case involving termination provisions under the Canada Labour Code, where the court found termination clauses unenforceable due to ambiguity and overreach. The court also awarded reasonable notice and damages for lost compensation, and rejected the employer's claim that the employees failed to mitigate their damages.
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.
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.
Abbasbayli v. Fiera Foods Company
2025 ONSC 3240 (CanLII) · 2025-05-30Termination for Cause: Time Theft and Mitigation of Damages
A termination for cause case where an employee was accused of time theft and denied wrongdoing. The court determined the employer had just cause to terminate the employee and awarded ten months' notice period. The employee failed to mitigate damages by not producing tax returns or evidence of job search efforts, and a claim for unpaid vacation pay under the Ontario Business Corporations Act was dismissed as abandoned.
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.
Habash v. St. Clair College of Applied Arts and Technology
2025 ONSC 1441 (CanLII) · 2025-03-04Termination and Defamation: College Employee Sues Individual Officer for Tortious Conduct
A motion to strike claims against an individual defendant for defamation and inducing breach of contract was denied, while leave to amend was granted for the defamation claim. The case involves a senior position termination at a college and allegations of tortious conduct by the individual defendant.
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.
Bazilinsky v. MacDougall
2024 ONSC 7015 (CanLII) · 2024-12-13Investment Advisor Termination: Reasonable Notice and Mitigation
A termination for cause case involving an investment advisor who was dismissed for engaging in unauthorized discretionary trading. The court also considered the appropriate reasonable notice period, mitigation of damages, and claims of oppression related to the sale of shares upon termination.
Bertsch v. Datastealth Inc.
2024 ONSC 5593 (CanLII) · 2024-10-08Employment Agreement: Termination Provisions and ESA Compliance
A motion regarding the enforceability of termination provisions in an employment agreement, focusing on compliance with the Employment Standards Act and the exclusion of common law notice. The court found the termination provisions clear and compliant, and denied the Rule 21 motion as there were no disputed facts requiring a trial.
Koshman v. Controlex Corporation
2023 ONSC 7045 (CanLII) · 2023-12-13Wrongful Dismissal: Senior Executive Employee Awarded 24 Months' Notice and $50,000 in Damages
A senior executive employee was summarily dismissed after 18.5 years of service. The court determined the appropriate notice period and awarded damages, including 24 months' notice of termination, $50,000 in aggravated damages, and $192,112.19 in costs for the employer's improper conduct and lack of defense.
Croke v. VuPoint Systems Ltd.
2023 ONSC 1234 (CanLII) · 2023-02-21Employment Contract Frustration: Vaccination Policy and Termination
A case involving the termination of an employee's contract due to non-compliance with a mandatory vaccination policy. The court also considered whether the employment contract was frustrated and the appropriateness of summary judgment. The plaintiff sought damages for wrongful dismissal, but frustration precluded such claims.
Park v. Costco Wholesale Canada Ltd.
2023 ONSC 1013 (CanLII) · 2023-02-10Termination Dispute: Demotion and Dismissal for Cause
A termination dispute involving a demotion and dismissal for cause, where the court addressed the reasonable notice period and the duty of good faith. The case likely involved a detailed analysis of the employer's actions and the employee's entitlements.
Williams v. Air Canada
2022 ONSC 6616 (CanLII) · 2022-11-25Air Canada Termination: 24 Months' Notice and Lost Benefits Awarded
A long-term employee of Air Canada was terminated without cause during the COVID-19 pandemic. The court awarded 24 months' notice, considering age, tenure, and economic uncertainty. The case also addressed damages for lost benefits and the nature of employment privileges, ultimately dismissing claims for travel and service awards. Mitigation efforts were deemed reasonable, and the court did not apply a trust and accounting approach to the judgment.
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.
OZ Optics Ltd. v. Evans
2022 ONSC 5890 (CanLII) · 2022-10-17Employment Termination: Summary Judgment Dismisses Claims Against Former Counsel
A case involving the termination of employment agreements and the withdrawal of legal representation due to health and ethical concerns. The court found no breach of professional duties or contract, and dismissed the conspiracy and damages claims, granting summary judgment in favor of the defendants.
Tarras v. The Municipal Infrastructure Group Ltd.
2022 ONSC 4522 (CanLII) · 2022-08-03Fixed-Term Contract Termination: Damages Awarded for Unexpired Term
A fixed-term employment contract was terminated without cause before the end of the term. The court found the termination clause unenforceable due to a conflict with the Employment Standards Act, 2000, and granted summary judgment for damages, including salary, vacation pay, and benefits, for the remaining term of the contract.
1159273 Ontario Inc. v. The Westport Telephone Company Limited
2022 ONSC 1375 (CanLII) · 2022-03-02Independent Contractor Status: Reasonable Notice and Summary Judgment
A civil procedure case where the court analyzed whether a plaintiff was a dependent contractor and if they were entitled to reasonable notice upon termination. The court found the plaintiff was an independent contractor and denied their motion for summary judgment, applying the Hryniak v. Mauldin framework.