At Will Employment in Canada: What You Need to Know

In Canada, “at-will employment” does not exist. Unlike the U.S., where an employee can be fired at any time without notice or reason (as long as the firing isn’t illegal), Canadian workers enjoy stronger job protections. Here’s what every employee in Canada should understand about at-will employment – and why it doesn’t apply here.

What Is At Will Employment?

At-will employment is a type of job arrangement where an employee can be fired at any time, for any reason — or no reason at all — without warning or severance pay, as long as the termination isn’t discriminatory or illegal. Employees can also quit at any time without notice or penalty.

This system is widely used in the United States, where most workers are considered at-will by default. But at-will employment does not exist in Canada.

In Canada, workers are protected by employment standards legislation and common law, which require employers to provide proper notice or severance pay when ending the employment relationship — unless there is just cause for termination.

Is At Will Employment Legal in Canada?

No, at will employment is not legal in Canada.

Here, most employment is considered to be indefinite unless you signed a valid fixed-term contract. If your employer wants to terminate you and there is no just cause, they are required by law to give you reasonable notice or severance pay. In many cases, your severance could be as much as 24 months’ pay.

Does Canada Have At Will Employment?

Again: No. Employers in Canada can’t fire employees without offering severance or advance notice, unless:

• There is just cause (serious misconduct), or
• There is an enforceable termination clause in your employment contract (and even then, it must meet legal standards)

Many contracts try to mimic at-will terms. But Canadian courts regularly void those clauses if they undermine your rights.

What About Ontario? Is Ontario At-Will Employment?

Ontario does not have at-will employment. Just like the rest of Canada, employees in Ontario are protected under:

• The Employment Standards Act (ESA)
• Common law, which provides a far greater amount of severance pay (up to 24 months) than the ESA minimums

The same applies to provinces like Alberta and British Columbia.

Can U.S. Companies Use At Will Contracts in Canada?

No. While some U.S.-based companies hiring Canadian workers might include at will language in their contracts, Canadian courts have made it clear:

• At will clauses are unenforceable in Canada.

Even if your employer is based in the U.S., Canadian law still applies to your job if you’re working in Canada.

Real Case Example: In Stanley v. Advertising Directory Solutions, the B.C. Court of Appeal threw out an at-will clause and awarded the employee 19 months’ pay in severance.

Can I Be Fired Without Reason If I Signed an At Will Contract?

No. Even if your contract says it’s “at-will,” that clause is not enforceable in Canada. Your employer must:

• Prove termination for cause, or
• Pay full and proper severance

If they skip either step, it’s constitutes a wrongful dismissal.

Key Takeaways for Employees

• Canada is not an at will employment country
• Termination requires severance or valid notice
• U.S.-style at will clauses do not hold up in Canadian courts
• Employees can challenge wrongful dismissals and lowball severance offers

Speak to an Employment Lawyer

If you’ve been let go or your employment contract includes confusing U.S.-style language, don’t sign anything before speaking to an employment lawyer.

Samfiru Tumarkin LLP has helped over 50,000 non-unionized employees across Ontario and Canada recover millions of dollars in compensation.

We’re:

• The most positively reviewed employment law firm in Canada (3,000+ Google reviews)
• Recognized as one of Canada’s Best Law Firms by the Globe and Mail
• Trusted by employees who need results

Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is not specific to any one company and should not be read as suggesting any improper conduct on the part of any specific employer, or a relationship between Samfiru Tumarkin LLP and a specific employer.