Being faced with a termination without cause in Ontario can feel confusing and overwhelming. You may be left wondering why you were let go, especially when your performance or conduct wasn’t in question. This termination without cause Ontario guide is here to help you make sense of the situation.
We’ll walk you through your legal rights, including notice periods, severance entitlements, and protections under the Employment Standards Act (ESA) and common law. You’ll also learn how to navigate the next steps, from negotiating a fair severance package to understanding wrongful dismissal claims. Our goal is to provide clarity and support during this uncertain time.
What is termination without cause Ontario?
In Ontario, a termination without cause happens when an employer ends the employment relationship without citing a reason related to your performance or conduct. In these cases, they’re required to provide reasonable notice or termination pay in place of notice, as outlined in your employment contract or under employment standards laws.
The amount of notice or pay you’re entitled to depends on factors like how long you’ve been with the company, your role, and the terms of your agreement.
If you’ve been terminated without cause in Ontario, our employment lawyers are here to help you understand your rights and guide you through the process. Contact us today for a free consultation.
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What’s the difference between termination without cause and termination for cause?
Termination without cause occurs when an employee is let go for reasons unrelated to their conduct, such as downsizing or company restructuring. This is in contrast to termination for cause, which happens when an employee is dismissed due to serious misconduct, poor performance, or failure to meet job expectations.
If you are terminated for cause, your employer is not obligated to provide notice or pay in lieu of notice. However, the bar for proving cause is quite high, and employers must have substantial evidence to justify this decision. If you are terminated without cause, you are entitled to either termination pay or reasonable notice, depending on the specifics of your employment situation.
To learn more, see Termination With Cause Ontario.
Termination without cause Ontario rules
In Ontario, it is legal for an employer to terminate an employee without cause, but certain rules must be followed:
Employers must provide notice or pay in lieu of notice
When an employee is terminated without cause, the employer must provide either reasonable notice of termination or pay in lieu of notice. Reasonable notice means giving the employee an advanced warning that their employment will be ending on a specific date. Pay in lieu of notice refers to the employer opting to pay the employee the amount they would have earned during the notice period instead of having them work through it.
Most employees are entitled to notice either under the ESA or through common law. The amount of notice usually depends on factors like the length of service, age, and position.
Under the ESA, employees may also be entitled to statutory severance pay if the employer’s payroll exceeds $2.5 million and the employee has been with the company for at least five years.
If your employer does not provide proper notice or pay in lieu of notice when terminating your employment, it’s important to seek legal advice.
Retaliatory terminations for ssserting legal rights are illegal in without-cause dismissals
Employers cannot dismiss employees without cause as an act of retaliation for asserting their legal rights. For example, if an employee exercises their right to a safe work environment or enforces wage entitlements under the ESA, an employer cannot terminate them in response. Such actions would be considered unlawful.
If you believe you were terminated in retaliation for asserting your legal rights, it is advisable to contact an employment lawyer immediately.
Employers cannot contract out of the ESA
Employers are not allowed to offer severance or notice entitlements that fall below the minimums guaranteed by the ESA, even if the employee signed an agreement to this effect. Any attempt to do so would be illegal.
If your employer tries to limit your entitlements or violates your rights, it’s essential to seek legal counsel right away.
Termination cannot be discriminatory
An employer cannot terminate an employee for discriminatory reasons, as prohibited by the Ontario Human Rights Code. For instance, dismissing an employee based on family status, such as planning to start a family, would be considered discrimination and is illegal.
If you suspect that your termination was based on discriminatory reasons, you should seek legal guidance immediately.
Termination without cause Ontario notice period
In Ontario, provincially regulated employees are entitled to two types of notice. The first is outlined in the Ontario Employment Standards Act (ESA), which sets the minimum standards for employment. According to the ESA, employees with more than three months of service are entitled to one to eight weeks of notice, depending on their length of service.
The second and often greater entitlement is the “reasonable notice period” under common law. Common law refers to legal principles established through decades of court decisions. While ESA notice is strictly based on an employee’s years of service, common law notice considers various factors, including the employee’s unique circumstances and how long it may take them to find a new job. While the ESA caps notice at eight weeks (plus up to 26 weeks of severance), common law notice can extend up to 24 months—or even longer in exceptional cases.
Many employees wonder why there are two notice periods, especially when common law notice is much more generous. The reason for this is employers can contract out of the longer common law notice by including termination clauses in employment contracts, provided these clauses meet the minimum ESA standards. However, courts often find these clauses invalid, so it’s important to seek legal advice if you have questions about a termination clause in your contract.
ESA notice period
All Ontario employees with at least three months of service are entitled to notice under the ESA. Any termination clause offering less than the ESA minimum is unenforceable. The following chart outlines the notice entitlements under the ESA:
| Period of employment | Notice required |
|---|---|
| Less than 1 year | 1 week |
| 1 year but less than 3 years | 2 weeks |
| 3 years but less than 4 years | 3 weeks |
| 4 years but less than 5 years | 4 weeks |
| 5 years but less than 6 years | 5 weeks |
| 6 years but less than 7 years | 6 weeks |
| 7 years but less than 8 years | 7 weeks |
| 8 years or more | 8 weeks |
Note: Special rules determine the amount of notice required in the case of mass terminations – where the employment of 50 or more employees is terminated at an employer’s establishment within a four-week period.
Common law notice period
Calculating common law notice is more complex than the ESA notice because it depends on the employee’s unique situation at the time of termination. Judges use several factors to determine how long it might take an employee to find comparable work, including:
- Age
- Length of service
- Job type
- Availability of similar positions
While a common “rule of thumb” suggests one month of notice per year of service, this is just a rough guide. Reasonable notice varies from case to case, and other factors, such as whether the employee was recruited to leave a previous job, can also affect the notice period.
Although common law notice generally provides more compensation than the ESA minimums, employees are required to “mitigate” their losses by looking for new employment during the notice period. If they secure another job, the employer’s obligation to pay damages may be reduced. It’s important to keep records of your job search during this time.
Since determining your notice entitlement can be complicated, it’s a good idea to consult an employment lawyer if you have any questions.
Our experienced team of employment lawyers can help you understand your entitlements and ensure your rights are protected. Click on the button below to schedule your free consultation today.
Severance vs. termination pay in Ontario terminations without cause
While termination pay and severance pay are often used interchangeably, they are separate entitlements with different purposes. Termination pay is based on length of service—typically one week per year worked, up to a maximum of eight weeks—and is provided in place of notice when an employee’s job ends.
Severance pay, however, is for long-term employees (at least five years) and applies under specific conditions, such as when the employer’s payroll exceeds $2.5 million or in the case of a permanent business closure. Severance provides one week of pay per year of service, up to 26 weeks, and is paid in addition to termination pay or required notice.
The key difference is eligibility: severance offers greater compensation for employees with longer service.
How much termination pay or severance am I entitled to after a termination without cause Ontario?
In Ontario, severance pay following a termination without cause can vary depending on factors like your age, job position, and length of service. The minimum severance pay under the ESA ranges from one week to a maximum of 26 weeks’ pay, depending on your length of employment.
However, under common law, you could be entitled to up to 24 months’ pay (two years), which is determined by the courts based on various factors like your age, job type, and availability of similar employment.
Other components, such as bonuses, commissions, overtime, and pension contributions, may also be factored into your severance calculation.
If you’ve been terminated without cause, it’s essential to fully understand your rights and the severance package you may be entitled to. Seeking legal advice can help ensure you receive what you’re owed.
Can I file a wrongful dismissal claim for a termination without cause?
Yes. If you were terminated without cause in Ontario and were not provided adequate severance or notice, you can file a wrongful termination claim against your employer. Wrongful dismissal claims are often complex, which is why having an experienced lawyer by your side is crucial to achieving the best outcome.
We understand that choosing a wrongful dismissal lawyer is a significant decision, and we’re proud of the strong reputation we’ve built across Canada.
If you’ve been wrongfully terminated, reach out to our employment law firm today. With over a decade of success in disability and employment claims, our wrongful dismissal lawyers are here to help. Click the button below to schedule your free consultation. Our claim consultants will review your case and outline your options moving forward.
I was terminated without cause. Now what?
If you were terminated without cause, you have three options: accept the decision and begin searching for new job opportunities, try to have your position reinstated, or negotiate a better severance package.
No matter which path you choose, your FIRST step should always be to consult an experienced employment lawyer. We’ve seen countless cases where employers wrongfully terminate employees or offer severance packages far below what’s deserved—and many employees don’t even realize they’ve been shortchanged.
If you believe your termination was unjust, your severance offer inadequate, or you’ve faced discrimination, it’s crucial to speak with an employment lawyer at Resolute Legal. Our team will thoroughly assess your case, explain your rights and options, and guide you through the next steps to protect your interests.
Caution – Do not sign a release without legal advice
If your employment has been terminated under ANY circumstances, including without cause, DO NOT SIGN A RELEASE. Contact us first. Employers often try to pay less than they owe you.
Employers will often add a deadline to sign your release, but you can always ask for an extension if you do not have enough time to consult with an employment lawyer.
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FAQ termination without cause Ontario
Can I get EI if I’m terminated without cause?
Yes, an employee terminated without cause is eligible for Employment Insurance (EI). However, you cannot receive EI and severance pay simultaneously. After your severance or notice period ends, you can apply for EI benefits. This ensures you get support once severance payments have been completed.
What is the difference between being terminated without cause and being laid off?
When you are terminated without cause, it means your employment contract has officially ended — through no fault of your own. When this kind of termination happens, you are required notice or termination pay. On the other hand, a layoff is generally considered a temporary cessation of employment with an anticipated return to work.
In some cases, a layoff can become a termination if it is prolonged or if the employer does not have a right to lay you off under contract unless you consent to it. If you were laid off, you should speak to an employment lawyer right away to ensure your rights are protected.