Wrongful Dismissal in Ontario: What Are Your Rights When You Lose Your Job?

Losing your job is stressful. Losing it unfairly can feel devastating. If you have been terminated without proper notice or severance, you may have a wrongful dismissal claim. In Ontario, the law provides meaningful protections for employees — but many people do not realize how much they may be entitled to until they speak with a lawyer.

What Is Wrongful Dismissal?

Wrongful dismissal occurs when an employer terminates an employee without providing adequate notice or pay in lieu of notice. In Ontario, employees are protected by both the Employment Standards Act, 2000 (ESA) and the common law. The ESA sets minimum standards, but the common law often entitles employees to significantly more — sometimes up to 24 months of pay.

How Much Severance Are You Entitled To?

The amount of reasonable notice (or pay in lieu) depends on several factors that Ontario courts consider, often called the Bardal factors: your age, length of service, the character of your employment, and the availability of similar employment. A long-serving employee in a senior role may be entitled to far more than the ESA minimums. For example, an employee with 20 years of service could receive 18 to 24 months of pay, while the ESA minimum might only provide 8 weeks plus statutory severance pay.

Do Not Sign Anything Without Legal Advice

Employers often present terminated employees with a severance package and a release to sign, sometimes with a deadline. It is crucial that you do not sign anything before having a lawyer review the offer. Many initial offers are well below what the law requires. Once you sign a release, it is extremely difficult to go back and claim more.

What About Termination Clauses in Your Employment Contract?

Many employment contracts contain termination clauses that attempt to limit your severance to the ESA minimums. However, Ontario courts have increasingly struck down these clauses when they fail to comply with the ESA in any respect. The Supreme Court of Canada and the Ontario Court of Appeal have made it clear that even minor deficiencies can render a termination clause unenforceable, restoring the employee's right to common law reasonable notice.

Constructive Dismissal

You do not have to be formally fired to have a wrongful dismissal claim. If your employer makes a fundamental change to your job — such as a significant pay cut, demotion, change in duties, or creation of a hostile work environment — you may have been constructively dismissed. This gives you the same rights as if you had been terminated without cause.

How Ken Wise & Associates Can Help

At Ken Wise & Associates, we represent employees who have been wrongfully dismissed or constructively dismissed. We review severance packages, negotiate better outcomes, and litigate when necessary. If you have lost your job or believe your employer is pushing you out, contact us for a consultation. You may be entitled to far more than you think.