Wrongful Dismissal in Ontario: Your Legal Rights Explained

  • Wrongful Dismissal in Ontario: Your Legal Rights Explained

    Losing a job can be stressful and overwhelming—especially when it happens suddenly or without fair compensation. In Ontario, many employees are wrongfully dismissed without realizing they have strong legal rights.

    This guide explains what wrongful dismissal is, how Ontario law protects employees, and what steps you should take if you believe your termination was unfair.

    1. What Is Wrongful Dismissal in Ontario?

    Wrongful dismissal occurs when an employer terminates an employee without proper notice or pay in lieu of notice, and the termination does not meet legal standards under Ontario law.

    It does not necessarily mean the employer lacked a reason to terminate—rather, it means the process or compensation was unlawful.

    1. Can an Employer Fire You “Without Cause”?

    Yes, employers in Ontario can terminate employment without cause, but they must provide:

    • Reasonable notice or
    • Pay in lieu of notice (severance)

    If an employer terminates you without cause and without proper compensation, it may be wrongful dismissal.

    1. Wrongful Dismissal vs. Termination for Cause

    Termination Without Cause

    • Most common form of termination
    • Requires notice or severance
    • Employee is not at fault

    Termination With Cause

    • Rare and difficult to prove
    • Requires serious misconduct (e.g., theft, fraud)
    • No severance required only if cause is proven

    Many employers incorrectly claim “cause” to avoid paying severance—this is frequently challenged successfully.

    1. How Much Severance Are You Entitled To?

    Severance depends on more than just minimum employment standards.

    Factors include:

    • Length of employment
    • Age of the employee
    • Position and responsibilities
    • Availability of similar employment

    In many cases, employees are entitled to far more than the minimum offered at termination.

    1. Common Signs of Wrongful Dismissal

    You may have a wrongful dismissal claim if:

    • You were terminated suddenly without notice
    • Your severance offer seems very low
    • Your employer claimed “cause” unfairly
    • You were pressured to sign a release quickly
    • Your termination followed medical leave, pregnancy, or complaints

    Never assume the employer’s offer is final or fair.

    1. Constructive Dismissal: Forced Resignation

    Wrongful dismissal also includes constructive dismissal, where an employee is forced to resign due to:

    • Significant pay cuts
    • Demotion
    • Toxic or hostile work environment
    • Major changes to job duties

    In these cases, the law may treat the resignation as a termination.

    1. What to Do If You Are Terminated

    If you are dismissed:

    1. Do not sign anything immediately
    2. Request written termination details
    3. Keep employment records and communications
    4. Seek legal advice before accepting severance

    Early legal guidance can significantly increase your entitlement.

    1. Time Limits Matter

    Wrongful dismissal claims are subject to strict limitation periods. Delays can reduce or eliminate your legal options.

    How Mann Law Can Help

    Employment law disputes can be complex and high-stakes.
    Mann Law represents employees in:

    • Wrongful dismissal claims
    • Severance negotiations
    • Constructive dismissal cases
    • Employment contract reviews
    Legal Disclaimer:
    • No Solicitor-Client Relationship: Use of this website or email links does not create an Lawyer-client relationship between you and Mann Law.
    • Not Legal Advice: This content is for informational purposes only. You should not act or refrain from acting on the basis of any content included in this site without seeking legal or other professional advice.
    • Accuracy: While we strive to provide accurate information, the law changes rapidly, and we cannot guarantee that all information provided is current or applicable to your specific situation.