20 Apr I Was Fired Without Warning in Ontario – Is That Legal?
In Ontario, most employment is “terminable at will,” meaning an employer can legally terminate an employee without warning – this is referred to as termination without cause. When an employer terminates an employee without cause, they must provide reasonable notice or pay in lieu of notice. Employees are entitled to at least the minimum legal requirements outlined in the Employment Standards Act, 2000 (ESA), or common law reasonable notice based on their role, tenure, and position.
What Are the ESA Minimum Requirements?
The ESA outlines the minimum notice periods based on length of service:
- Less than 3 months – no notice required
- 3 months to 1 year – 1 week notice
- 1 to 3 years – 2 weeks’ notice
- 3 to 4 years – 3 weeks’ notice
Employers must provide at least these ESA minimums when terminating without cause. If the employer fails to provide proper notice, the employee may be entitled to damages for unpaid wages or termination pay.
How Do Legal Entitlements Differ When the Termination is “For Cause”?
In Ontario, a termination “for cause” allows an employer to terminate an employee without providing notice or pay in lieu of notice. However, the threshold for “cause” is high. It does not include mistakes, minor rule breaches, or underperformance.
One common ground for cause is wilful misconduct, which is a deliberate, intentional action or inaction that seriously damages the employment relationship. Examples include theft, physical assault, serious fraud, fundamental breach of trust, severe neglect of duties, insubordination, or profound ineptitude.
If the termination does not meet this high threshold, it is treated as termination without cause, and the employee is entitled to ESA minimum notice or pay in lieu.
When are Employees Entitled to Common Law Notice?
Even if a contract only provides ESA minimums, employees may be entitled to common law reasonable notice, which often exceeds statutory requirements. To determine the amount, courts will consider length of service, position, seniority, difficulty of replacing the employee, age, experience, etc. For senior or long-serving employees, reasonable notice under common law can extend to 12 months or more.
When are Employees Entitled to Severance Pay?
In Ontario, some employees may be entitled to severance pay under the ESA, which is separate from termination notice or pay. To qualify, the employee must have worked for 5 years or more, work for an employer with a minimum payroll of $2.5 million or more or be part of mass termination.
The employee may be entitled to both termination and severance pay. The key difference between termination notice (or pay) and severance is that termination notice (or pay) is intended to give the employee time to find new employment, whereas severance compensates for years of service and the impact of losing the position.
KCY at LAW can review your contract and assess whether you qualify for severance pay to ensure you receive everything you are legally entitled to.
When Does Termination Become Wrongful or Illegal?
While employers can terminate employees without warning, they cannot fire someone for illegal reasons under the ESAor human rights legislation.
Illegal reasons may include exercising their legal rights (e.g. filing a complaint), taking a protected leave (e.g. parental or maternity leave), or discriminatory reasons (e.g. disability, sex, gender, race).
Even if an employer provides a different reason for termination, courts will closely examine the timing and context to determine whether the termination was in fact unlawful.
How Can KCY at LAW Help?
We can support you in determining your entitlements if you have recently been terminated by:
- Reviewing your employment contract
- Assessing ESA minimum entitlements
- Evaluating potential for common law notice
- Considering severance rights
We ensure that you receive all legally owed notice or pay, and we can act as counsel to challenge unlawful terminations if applicable.
If you want to understand your rights, determine your entitlements post-termination, or assess whether your termination was lawful, contact KCY at LAW at 905-639-0999 to book your consultation today.