Introduction

Being terminated from a job is a stressful experience, but not all dismissals are lawful. In Ontario, employees have rights protected by legislation and common law. This blog explains what constitutes wrongful dismissal, how to recognize it, and the steps you can take to seek justice under Ontario’s legal framework.

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What Is Wrongful Dismissal?

Wrongful dismissal occurs when an employer terminates an employee without providing adequate notice or pay in lieu of notice, as required by law. Even if the termination itself is not discriminatory or retaliatory, failing to meet notice or severance obligations can render it unlawful.

Key points:

● No “Just Cause” Required: Unless an employer can prove just cause (e.g., serious misconduct), employees are entitled to notice or compensation.

● ESA vs. Common Law: Ontario’s Employment Standards Act (ESA) sets minimum notice periods, but courts often award longer entitlements under common law, which considers fairness based on individual circumstances.

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Wrongful Dismissal vs. Constructive Dismissal

● Constructive Dismissal: Occurs when an employer unilaterally changes fundamental terms of employment (e.g., demotion, salary cuts), forcing the employee to resign.

● Wrongful Dismissal: Focuses on improper termination process (lack of notice/severance).

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Legal Recourse for Employees

If you believe you’ve been wrongfully dismissed, here’s how to protect your rights:

1. Review Your Employment Contract

○ Check for enforceable termination clauses. These must meet or exceed ESA standards.

2. Calculate Your Entitlements

○ ESA Minimums: 1 week per year of service (up to 8 weeks) for notice; severance pay after 5+ years (1 week per year, up to 26 weeks).

○ Common Law: Typically ranges from 1–24 months’ pay, depending on factors like age, tenure, and job prospects.

3. Attempt Negotiation

○ Many disputes resolve through negotiation. A lawyer can help draft a demand letter outlining your claims.

4. File a Claim

○ Ministry of Labour Complaint: For ESA violations (deadline: 2 years).

○ Lawsuit: For common law entitlements (deadline: 2 years from termination date).

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Factors Influencing Reasonable Notice

Courts consider:

● Length of service

● Age and role of the employee

● Availability of comparable employment

● Industry standards

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Practical Tips for Employees

● Document Everything: Save termination letters, emails, and records of meetings.

● Avoid Signing Releases Immediately: Consult a lawyer before agreeing to severance terms.

● Know Your Timeline: Act quickly—Ontario’s limitation period is 2 years.

Advice for Employers

● Ensure termination clauses are ESA-compliant and reviewed by legal counsel.

● Conduct terminations respectfully and transparently to minimize legal risk.

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Conclusion

Wrongful dismissal laws in Ontario exist to balance the power dynamics between employers and employees. Whether you’re an employee seeking fair compensation or an employer aiming to comply with the law, understanding these rights is critical.

If you suspect wrongful dismissal, consult an employment lawyer to explore your options. Proactive advice can safeguard your financial stability and career future.

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Free Consultation with London Employment Lawyers

Ontario’s laws provide critical protections for employees during mass layoffs, ensuring they receive fair notice, severance pay, and support. If you’re affected by a group termination, understanding your rights and seeking professional advice can help you navigate this challenging time and secure the compensation you deserve. Please do not hesitate to contact our experienced London employment lawyers for a free legal consultation d at (548) 489-2006 or fill out the contact form.

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