Wrongful Termination In Ontario: 29 Questions & Expert Answers

If you're reading this, you’ve likely just been terminated in Ontario and are now asking yourself "was this a wrongful termination?"

Before I provide any guidance, I want to acknowledge that this is a stressful situation and I’m sorry that you’re going through it.

As an employment lawyer, I've spent my career helping hundreds of employees in Ontario navigate terminations (wrongful or otherwise). They usually have a lot of questions, and although every situation is unique, a few frequently asked questions have emerged. To help you navigate this challenging situation, I've compiled these questions and will do my best to provide answers through the lens of employment law in Ontario.

Note: Every situation/contract/termination/severance package is unique, so please consult with an employment lawyer to discuss your matter. This post includes legal information but is not legal advice.

Key takeaways

• Wrongful termination means an employer didn’t meet their legal obligations when terminating your employment. If you were let go without proper notice, severance, or for an unlawful reason, it could be a wrongful dismissal.‍‍

• ‍Just cause is hard to prove. True cause (like serious misconduct) is rare. If your employer cannot clearly demonstrate it, you are likely owed notice or pay in lieu.

• ESA is the minimum, not the max. The Employment Standards Act sets a baseline. Under common law, you may be entitled to far more than the ESA minimum.

• ‍Don’t sign immediately. Review any severance offer with an employment lawyer before accepting. You likely have more time than the employer’s deadline suggests.

• Time limits exist. Generally, you have two years from your termination date to file a wrongful termination claim in court, commonly referred to as the statute of limitations. Human rights complaints have a shorter, one-year deadline.

• Keep looking for work. You must try to mitigate your damages by job hunting, even if you plan to pursue a wrongful dismissal claim.
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Wrongful termination in Ontario FAQ and answers from an employment lawyer

1. "What is the difference between termination with cause, without cause, and wrongful termination in Ontario?"

Termination "with cause" means an employer has grounds to dismiss an employee, typically due to misconduct or persistent performance related issues. In contrast, termination "without cause" happens when an employer ends your employment without alleging misconduct, requiring them to provide notice or pay in lieu of notice.

In Ontario, wrongful termination describes a dismissal that violates employment laws or breaches the terms of an employment contract. For example, if you've been terminated without cause and your employer does not provide adequate notice or severance, you're likely being wrongfully terminated. It also includes terminations that were based on discrimination as prohibited by the Ontario Human Rights Code, or retaliatory dismissals for exercising your legal rights.

2. "What is the difference between being terminated without cause and being laid off?"

Being terminated without cause means your employment is ended without fault on your part, requiring notice or severance from the employer. A layoff, on the other hand, is typically considered a temporary work stoppage with an expected return to work. That said, if prolonged, or if your employer has no right to lay you off under contract or past practice, a layoff will become a termination unless you consent to it. If you’ve been laid off, it’s best to speak with an employment lawyer immediately to determine your rights. 

3. "How do I know if my termination was without cause?"

Look at the paperwork. If your employer hasn’t cited specific misconduct or a serious performance issue, and they’re offering you some form of notice or pay in lieu, that’s a without-cause termination. The telltale sign is usually the language in the termination letter itself. If it says something like “your position has been eliminated” or “we’ve decided to go in a different direction,” that’s without cause.

4. "Can my employer really terminate me without cause in Ontario?"

Yes, employers in Ontario can terminate employees without cause, so long as they offer adequate notice, or pay in lieu of notice, following the guidelines set by the Employment Standards Act, 2000, and the common law, if applicable. The real question isn’t whether they can let you go, it’s whether they’re offering you what you’re actually entitled to. That’s where most employers (in my experience) fall short.

5. "Can my employer terminate my employment without providing any warnings?"

Getting terminated without any warnings can feel abrupt, but employers in Ontario can terminate your employment without cause, which means they can legally dismiss an employee without giving warnings as long as they provide adequate notice, or pay in lieu of notice. If the termination is for cause due to misconduct or persistent poor performance, it's generally expected that the employer will have provided warnings and an opportunity to improve before proceeding with termination.

If your employer alleges they have cause to terminate you, pay close attention. Employers must meet a high bar to prove just cause, and in my experience, cause is alleged without merit more often than you’d expect. A vague reference to “performance issues” or a single incident rarely meets the legal threshold.

6. "My performance reviews have been great... I don't understand why I'm being terminated?"

‍Unfortunately, many of the employees we meet have had good performance reviews before being terminated, which can feel quite disheartening. In Ontario, employers can terminate employment without cause, meaning they do not need to provide a reason related to job performance. Even if your performance reviews have been positive, you can still be legally terminated as long as the employer complies with requirements for notice, or pay in lieu of notice, as outlined by the Employment Standards Act, 2000 and the common law, if applicable.

7. “Can my employer terminate me while I’m on parental, medical, or disability leave?”

‍They can’t fire you because you took, or plan to take, a protected leave. That would violate the Employment Standards Act and the Human Rights Code. An employer can still restructure or close the business, but they must prove the decision was unrelated to your leave. If you suspect otherwise, speak with an employment lawyer to discuss your rights.

8. "I'm unionized, can I be terminated without cause?"

For unionized employees, terminations must follow the specific procedures outlined in their Collective Agreement. If you’ve been terminated, please contact your union or an employment lawyer that specializes in supporting unionized employees.

9. "Is there a difference between severance and termination pay when terminated without cause?"‍

These are actually two separate entitlements, and a lot of people don't realize that until a lawyer points it out.

Termination pay is what your employer owes you when your job ends without cause, generally one week per year of service under the ESA, up to eight weeks. Severance pay is different and it only applies if you've been with the company for at least five years and your employer's payroll exceeds $2.5 million. When it does apply, it can add up to another 26 weeks on top of termination pay.

10. "How do I negotiate a better termination package?"

Start by understanding what you’re actually entitled to. Not just the ESA minimums, but your common law notice period based on your age, role, and tenure. That’s your leverage. From there, a demand letter from a lawyer often changes the dynamic entirely. Employers expect most employees to just sign a release, so when a lawyer writes back with an amount that's grounded in case law, it signals you’re serious. In my experience, most negotiations settle without going to a hearing. The key is knowing your target number before you start the conversation.

11. "What happens if I find a new job while negotiating my termination package?"

It depends on timing and whether your employer knows. If you’ve already accepted a new position, it can reduce the damages you’re claiming because your actual income loss is shorter. But that doesn’t mean you’re owed nothing. You may still be entitled to compensation for the difference in pay, lost benefits, damages for discrimination, etc. I’ve seen situations where employees landed a comparable job quickly and still secured meaningful settlements because the new role paid less or didn’t include the same benefits. The important thing is to keep your job search documented regardless.

12. "What kind of compensation might I be entitled to when wrongfully termination?"

When you claim that you've been wrongfully terminated, the damages you seek are pay in lieu of reasonable notice of your termination. Reasonable notice is determined based on a number of factors, including length of service, position, age, availability of comparable employment, and more. In addition to pay in lieu of notice, you should also be eligible for any benefits, bonuses, pension, etc. that you would have been entitled to during the notice period.

In some cases, employees may also be entitled to damages relating to the manner of dismissal and/or punitive damages. If discrimination contributed to your termination, you'd also be entitled to general damages for discrimination.

13. "Can I ask for a written reason for my termination?"

This is one of the most common questions I hear, and it usually comes from a place of wanting closure, especially when you’ve given years to a company. You can absolutely ask, and sometimes employers will provide a reason. But they’re not legally required to give one unless your contract says otherwise. Here’s what I tell clients: the reason matters less than the terms. Whether they call it “restructuring” or give no reason at all, what determines your entitlements is the same: your age, tenure, role, and the job market. Don’t let the absence of a reason stop you from getting what you’re entitled to.

14. "Should I sign a severance package or release agreement immediately after termination?"

No, it's in your best interest to review any severance offer with an employment lawyer before signing to ensure it fairly compensates you for your termination. Employers will often add a deadline to sign your release, but you can always ask for an extension if you did not have enough time to consult with an employment lawyer.

15. "I was terminated without cause, but was not offered notice, pay in lieu of notice, or a release, what now?"

If you were terminated without cause in Ontario, and were not offered notice, pay in lieu of notice, or a release, you might have a claim for wrongful termination and should consult with an employment lawyer for advice. It's important to note that you have two years from your termination date to file a wrongful termination claim in court, commonly referred to as the statute of limitations.

16. "How does termination without cause affect my eligibility for Employment Insurance (EI)?"

You're generally eligible for EI benefits after a termination without cause, provided you meet the other eligibility criteria set by Service Canada.

17. "What role does the Ministry of Labour play in wrongful termination cases?"

The Ministry of Labour (MOL) investigates violations of the Employment Standards Act, 2000 but does not handle wrongful dismissal claims directly. Such claims may require legal action in court. Employees should seek legal advice before filing a claim with MOL as doing so will impact their ability to seek remedies in court or tribunals. 

18. "How long do I have to challenge a wrongful termination?"

You typically have two years from the date of termination to file a civil lawsuit for wrongful termination in Ontario. That’s why it’s important to consult with an employment lawyer. Please note that you only have one year from the date of a discriminatory incident to file a human rights application. 

19. "How do I file a claim for wrongful termination?"

You can either file a complaint for termination pay and severance pay, if applicable, with the Ministry of Labour, or, you can sue your former employer in court for wrongful dismissal. You cannot do both. This means that if you file a claim with the Ministry of Labour you forgo your right to sue for wrongful dismissal, and vice versa. An employment lawyer can help you understand these different approaches in order to determine the best option for your circumstance.

20. "What should I do if I believe my termination was discriminatory?"

If you suspect discrimination for any reason (disability, age, race, sex, pregnancy, etc.), you can file an application with the Human Rights Tribunal of Ontario or seek legal advice to explore your options for recourse, as this would constitute wrongful termination.

21. “Does signing a release cancel my non‑compete or NDA?”

‍Usually not. A standard release wipes out claims you might have, but it doesn’t automatically erase restrictive covenants unless the agreement says so expressly. Ontario banned most employee non‑competes in 2021, yet NDAs, non‑solicitation, and confidentiality clauses still stand. If you have questions, an employment lawyer can review your employment contract and provide answers.

22. "Can wrongful termination affect my immigration status if I'm on a work visa?"

Yes, losing your job may affect your immigration status if your visa is tied to your employment, even if you've been wrongfully terminated. Consult with an immigration lawyer immediately to explore your options.

23. "Is there a difference in my rights if I was a part-time employee versus full-time?"

Under Ontario law, part-time and full-time employees have the same termination and severance rights. The amounts may differ because they’re calculated based on your actual earnings, but the legal framework is identical. This surprises a lot of people. If you worked part-time for ten years, your length of service still counts when assessing your common law notice period.

24. "Can my employer give me a negative reference after a wrongful termination?"

Employers are allowed to provide truthful references, but they cannot make false or malicious statements that could harm your future employment prospects.

25. "Can my employer retract my termination?"

Employers can retract a termination, but this is rare and usually occurs only if both parties agree to resolve the situation amicably. Typically, the best course of action when terminated without cause is to seek compensation that is fair and part ways. If your termination was tainted by discrimination or reprisal you may request reinstatement, should you wish to pursue it.

26. "How should I explain my termination to potential employers?"

Keep it brief and matter-of-fact. Something like: “The company restructured and my position was eliminated” is honest and doesn’t invite follow-up questions. You don’t need to share the details of any legal proceedings or negotiations. Most hiring managers understand that terminations happen. What they’re looking for is how you talk about it. Confidence and a forward-looking tone go further than over-explaining and speaking negatively about your former employer.

27. "What are the common mistakes to avoid when dealing with wrongful termination?"

The most common mistakes we’ve seen include signing a termination package too quickly, not seeking legal advice, and discussing the case inappropriately on social media or with former colleagues. These mistakes typically make seeking recourse in a wrongful termination more challenging. 

28. "Should I look for a new job immediately, or wait until after my wrongful termination case is resolved?"

If you’re medically able to, you should start your job search immediately and keep a detailed record of the same. Whether you file a claim for wrongful dismissal or an application at the Human Rights Tribunal of Ontario, you have a duty to mitigate your losses which means finding new, comparable, work as soon as possible. 

29. "Should I seek legal advice even if I don’t plan to file a lawsuit?"

Yes, obtaining legal advice can clarify your rights and options, and help you make informed decisions about how to proceed after a wrongful termination. An employment lawyer can also help you determine if the employer’s notice or severance offer is fair given your circumstances.

The best approach is to speak with an employment lawyer when terminated in Ontario

Every situation is unique, and it’s best to consult with an employment lawyer to ensure you’re being treated fairly when wrongfully terminated in Ontario. 

If you’ve been terminated with or without cause or wrongfully dismissed in Ontario, Kompa Law can help. We’re a boutique employment and human rights law firm with the expertise to help you successfully navigate this challenging situation. Request a callback to learn more.