Client Win: Ontario Court Upholds, Increases Severance Award for 7-Year Contractor

Lefor v. Canada Suites Ltd., et al

Samfiru Tumarkin LLP recently appeared before the Ontario Superior Court of Justice’s Divisional Court — successfully arguing that the Feb. 2025 wrongful dismissal ruling in favour of our client, Mark Lefor, should be upheld.

In Lefor v. Canada Suites Ltd., et al, the Ontario Small Claims Court initially found that Lefor was a dependent contractor at the time of his termination, entitling him to 9 months of severance pay.

Associate Teilen Celentano has secured nearly $40,000 for Lefor, which includes the severance award at trial, costs at trial, and costs on appeal.

📺 WATCH: Employee Misclassification — Your Rights

What You Need to Know

• In August 2013, Lefor begins working for Canada Suites — classified as an independent contractor.
• Throughout his 7 years with Canada Suites, Lefor is directed to submit semi-monthly invoices for approval and payment.
• Pleased with his work, Canada Suites promotes Lefor to the position of General Manager.
• In the spring of 2020, Canada Suites attempts to reduce Lefor’s compensation. Following his rejection of the pay cut, the company terminates him without severance pay — citing his classification as an independent contractor.
• Confident that he’s been wrongfully dismissed, Lefor contacts Samfiru Tumarkin LLP.

Divisional Court’s Decision

The Divisional Court rejected the appeal by Canada Suites — claiming the company had failed to establish that the trial judge made a palpable and overriding error in their ruling.

With the initial proceedings deemed to be procedurally fair, Lefor’s payout was increased by $6,000 to nearly $40,000 due to the costs and disbursements of the appeal.

SEE ALSO
• Should I Negotiate My Own Severance Package in Ontario?
• Can I Get My Job Back if I’m Fired?

Key Takeaways

For Employees

• You don’t have to accept substantial changes to your job: Lefor’s victory serves as a reminder that companies in Ontario can’t make major changes to the terms of an individual’s employment without their consent. If this happens to you, contact an experienced employment lawyer at Samfiru Tumarkin LLP. We can confirm that you’ve been constructively dismissed and help you secure the compensation you deserve.

For Employers

• Contractors can be entitled to severance: Courts look beyond an individual’s “on paper” classification. Therefore, a worker may still be entitled severance pay — even if they’ve signed an employment contract designating them as independent contractor.
• Seek legal advice before firing staff or contractors: Since each employment matter is unique, a thorough review by our team pre-termination will ensure laws aren’t being broken and that the individual’s rights have been taken into account.

More Ontario Client Wins

• Ontario Exec Awarded Over $300K Following Devastating Demotion
• Ontario Court Upholds $50K Discrimination Award for Fired Mother
• Significant Severance Package for Ontario IT Specialist
• Ontario Salesperson Awarded $182K in Wrongful Dismissal Case
• 17 Months of Severance for Wrongfully Dismissed Ontario Salesperson
• $157,000 for Ontario Youth Coordinator After Contract Cut Short
• Full Severance for Ontario Dental Receptionist Despite Termination Clause
• Ontario “Road Boss” Constructively Dismissed, Awarded Over $320K
• Office Admin Awarded Nearly $85K in Wrongful Dismissal Case
• Ontario Welder Sparks Justice After 36 Years of Service Snuffed Out

Workplace Issue? Get Help Now

📞 Contact Samfiru Tumarkin LLP: 1-855-821-5900 or request a consultation online.

Our experienced employment lawyers in Ontario, Alberta, and British Columbia (BC) have helped tens of thousands of non-unionized individuals resolve their workplace issues, including wrongful dismissals.