Terminating Older Employees in Ontario: What Employers and Employees Should Know

Terminating an older employee in Ontario is legal — but it comes with higher risks and obligations. Employees over 50, 60, or even 65 are often entitled to enhanced severance pay, and employers must avoid age discrimination.

If you’re an employee who has been let go later in your career, or an employer considering a termination, here’s what you need to know.

Can Employers Terminate Older Employees in Ontario?

Yes. Employers can terminate employees of any age — but only if they provide proper notice or severance pay, and do not terminate because of age.

Terminating Employees Over 50

Employees over 50 are often granted longer severance packages because:

• Courts recognize they face greater challenges finding new work.
• Age is a key factor in determining reasonable notice.
• Long service + older age usually = more severance.

Terminating an Elderly Employee (60-65+)

Some employers mistakenly believe employees must retire at 65. This is false. Mandatory retirement is abolished in Ontario, except in rare jobs where physical ability is a bona fide requirement.

Age and Severance Entitlements

When calculating severance, the law in Ontario looks at multiple factors, including:

• Age
• Length of service
• Character of employment
• Availability of similar work

Older age almost always increases severance entitlement.

Employer Best Practices When Terminating Older Employees

Employers should:

• Avoid age-related comments. Even casual remarks can be evidence of discrimination.
• Offer fair severance. Older employees are often owed much more than the ESA minimum.
• Provide support. Reference letters and outplacement services can reduce risk.

Failing to follow these practices can result in wrongful dismissal claims and human rights complaints.

Key Takeaways for Employers and Employees

• Employers: You can terminate older employees, but only with fair severance and without discrimination.
• Employees: Age strengthens severance claims — don’t accept the first offer without legal advice.

FAQs About Severance and Retirement in Ontario

Speak to an Employment Lawyer

If you’re over 50 and have been terminated, or if you’re an employer unsure about your obligations, get legal advice before making decisions.

At Samfiru Tumarkin LLP, our employment lawyers in Ontario have helped tens of thousands of employees enforce their workplace rights.

At our firm, we have:

• ⚖️ Settled over 99% of cases quickly through negotiation or mediation
• 💰 Secured millions in compensation
• 📱 Free Termination Consultations — in many, but not all, cases
• ⭐ Earned 3,215 5-star Google reviews (4.7 average)
• 🏆 Recognized as one of Canada’s Best Law Firms (Globe and Mail)

Call us at 1-855-821-5900 or request a consultation online.