Understanding Wrongful Dismissal: Your Rights When Your Employment Ends

Facing job termination is a deeply unsettling experience. When the dust settles, the most critical question is often: Was I given everything I was legally owed?

In Ontario, understanding your rights regarding termination requires knowing the difference between the types of dismissal and your entitlement to notice.

1. The Two Types of Termination

In law, nearly every termination falls into one of two categories:

A. Termination With Just Cause (The Rare Exception)

This occurs when an employer can prove the employee committed an act so egregious—such as theft, chronic insubordination, or serious misconduct—that it fundamentally broke the employment contract.

• The Outcome: If Just Cause is proven, the employee is legally entitled to no notice, no severance, and no Employment Insurance (EI) benefits (though EI is handled separately).

• The Reality: Proving just cause is extremely difficult for an employer. The legal standard is high, and courts prefer to award damages rather than allow an employer to escape all liability.

B. Termination Without Cause (The Vast Majority)

This is the standard business decision where the employer terminates the relationship for legitimate business reasons (e.g., restructuring, performance issues that don't meet the "just cause" bar, or incompatibility).

• The Employer’s Obligation: An employer has the right to terminate an employee without cause, but only if they provide the employee with adequate Notice (or pay instead of notice).

• The Definition of Wrongful Dismissal: If you are terminated without cause and the employer offers less than your legal entitlement to notice, the dismissal is Wrongful.

2. The Heart of the Matter: "Reasonable Notice"

When an employee is terminated without cause, their legal entitlement is usually based on the Common Law principle of Reasonable Notice. This is a non-negotiable right unless the employment contract clearly and legally limits the notice period to the statutory minimums (the Employment Standards Act, 2000).

The amount of reasonable notice you are owed is calculated by considering several key factors (The Bardal Factors):

• Age: Older employees are often granted a longer notice period.

• Length of Service: The longer you worked for the employer, the longer the notice period.

• Character of Employment: Employees in senior, specialized, or managerial roles are typically owed more notice.

• Availability of Similar Employment: If it is difficult to find a comparable job in your field, the notice period may be longer.

This notice period is expressed as a number of weeks or months of wages and benefits. The difference between what the employer offers and what you are owed under Common Law forms the basis of your wrongful dismissal claim.

3. Why You Need Professional Guidance

When you receive a termination package, it is a settlement offer, not a final statement of your rights. Your employer is likely offering the legal minimum, not the reasonable notice you are entitled to.

Before you sign any release or acceptance document, you must have your package reviewed by a legal professional. We assess your circumstances based on the Bardal factors to determine your true Common Law entitlement. Our goal is to ensure you receive the full financial compensation needed to bridge the gap until you secure your next position.

Have your termination package reviewed. CONTACT US.

**This post provides general information on defamation law in Ontario and is for educational purposes only. It is not legal advice.