Constructive Dismissal Settlements in Ontario

If you’ve been constructively dismissed, one of your first questions is likely:

• “How much is my case worth?”

In Ontario, constructive dismissal settlements can vary widely depending on your situation. In many cases, employees are owed far more than minimum standards.

This guide explains how settlements are calculated and what you may be entitled to.

What Is a Constructive Dismissal Settlement?

A constructive dismissal settlement is the compensation you receive after your employer makes major changes to your job, effectively forcing you out.

In most cases, this compensation is based on severance pay — similar to what you would receive if you were fired without cause in Ontario.

How Much Are Constructive Dismissal Settlements in Ontario?

There is no fixed formula, but many employees receive several months of pay — and sometimes more.

General Ranges (For Illustration Only):

• Short-term employees → many months of pay
• Mid-level employees → several months to over a year
• Long-term or senior employees → up to 24 months or more

What Factors Affect Your Settlement?

Several key factors influence how much you may be owed:

1. Length of Service

The longer you’ve worked, the higher your potential entitlement.

2. Age

Older employees may receive more severance due to difficulty finding new work.

3. Position and Seniority

Senior or specialized roles often result in higher settlements.

4. Availability of Similar Employment

If comparable jobs are limited, severance may increase.

Why Settlements Are Often Higher Than ESA Minimums

Many employees assume they are only entitled to minimum severance under Ontario’s Employment Standards Act (ESA).

That’s not the case.

Under common law, severance is often significantly higher than ESA minimums.

This is one of the most important reasons to get legal advice before accepting any offer.

Example Scenarios

While every case is unique, here are general examples:

Example 1: Mid-Level Employee

• 8 years of service
• Manager role

May be owed around 12 months of severance.

Example 2: Senior Employee

• 20+ years of service
• Specialized position

May be owed 18–24 months (or more)

Example 3: Short-Term Employee

• 2 years of service

May be owed 6 months of severance.

Don’t Accept an Offer Too Quickly

Employers often offer less than what you’re legally entitled to.

Before accepting anything, consider:

• Is this based on ESA minimums only?
• Does it include bonuses and commissions?
• Are benefits continued?

What Should You Do If You’ve Been Constructively Dismissed?

1. Don’t Resign Too Quickly

This can affect your claim.

2. Document Everything

Keep records of changes to your job.

3. Get Legal Advice

An employment lawyer can determine what your case is worth.

Speak to an Employment Lawyer About Your Settlement

If your employer has made major changes to your job, you may be owed significant compensation.

At Samfiru Tumarkin LLP, our employment lawyers have helped thousands of Ontario employees:

• Understand their rights
• Assess their severance
• Secure proper settlements

FAQ: Constructive Dismissal Settlements Ontario

How much severance can I get for constructive dismissal in Ontario?

It depends on your age, role, and length of service. Many employees are entitled to several months—or more.

Is there a maximum settlement amount?

In many cases, courts award up to 24 months of notice, but it can vary.

Do I have to go to court to get a settlement?

No. Most cases are resolved through negotiation.

Can my employer offer less than I’m owed?

Yes. Many initial offers are below full entitlement.

Should I accept my employer’s first offer?

Not before getting legal advice.