Termination Without Cause in Ontario

Have you been fired without cause in Ontario? You’re not alone.

Most terminations in Ontario happen without cause, but that doesn’t mean your employer can ignore your rights. If you’ve lost your job, you could be entitled to significant compensation – up to 24 months’ pay.

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What is a Termination Without Cause in Ontario?

In Ontario, a termination without cause happens when an employer lets go of an employee for reasons unrelated to misconduct. This could be due to restructuring, cost-cutting, or simply because the company feels the employee is no longer a fit.

An employer doesn’t need to prove a good reason to fire someone without cause – but they must provide on of the following:

• Proper notice (also called working notice)
• Severance pay
• A combination of both

They must also ensure the termination isn’t based on discriminatory grounds (such as age, disability, gender, or race). Firing someone for these reasons violates Ontario’s Human Rights Code.

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Can an Employer Fire You Without Cause in Ontario?

Yes. In Ontario, an employer can legally fire a non-unionized employee at any time, without cause, as long as they provide the proper amount of working notice, severance pay, or both.

It doesn’t matter if the employee has done nothing wrong. Terminations without cause are legal in Canada – but only when:

• The reason isn’t discriminatory or in bad faith
• The employee receives full compensation for lost income and benefits during the notice period

Common examples of termination without cause

• Business restructuring or downsizing
• Budget or cost-cutting measures
• Position elimination due to automation, artificial intelligence or outsourcing
• Personality clash or perceived “bad fit”
• Performance issues that don’t meet the threshold for termination with cause

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Can You Get Fired Without Warning in Ontario?

Yes, you can get fired without warning in Ontario – but your employer must provide proper severance pay or working notice.

In other words, your employer doesn’t need to give you a heads-up that you’re about to be terminated. What matters is how much compensation you receive at the time of termination.

If your employer fires you without warning and without enough compensation, it may be considered a wrongful dismissal.

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Difference Between “Without Cause” and “For Cause”

The difference between termination without cause and termination for cause in Ontario comes down to why the employer is ending the employment relationship – and what the employee is owed when it happens.

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Constructive Dismissal and Termination Without Cause

Both termination without cause and constructive dismissal involve ending the employment relationship without employee misconduct – but they happen in very different ways.

Key Differences:

• Termination without cause: The employer directly ends the employment and offers notice or severance.
• Constructive dismissal: The employee resigns because their employer made major, unwanted changes to the job – such as cutting hours, reducing pay, demoting them, or creating a toxic work environment.

If the changes are serious enough, the law treats it as if you were fired, meaning you’re still entitled to full severance pay.

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Severance Pay for Termination Without Cause is One Week’s Pay Per Year of Service (Max 26 Weeks) Under the ESA

However, most employees in Ontario are entitled to much more severance when they’re fired without cause.

Under common law, you could receive up to 24 months’ pay – even if your employer offers less. That’s substantially more than the amount provided under Ontario’s Employment Standards Act.

Your total severance package may include compensation for:

• Base salary
• Bonuses and commissions
• Vacation pay
• Overtime pay
• Health and dental benefits
• Pension contributions
• Stock options or incentives

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Can an Employment Contract Affect My Severance?

Yes, your employment contract can impact how much severance pay you receive after being terminated without cause in Ontario.

Many employers include termination clauses in their contracts that try to limit severance to the minimum amounts under the ESA – even if you’re owed mor under common law.

⚠️ But here’s the key:

Most of these clauses are poorly written, outdated, or legally invalid — which means you could still be entitled to significantly more compensation.

What to watch for:

• Contracts that reference only the ESA
• Clauses that waive your right to common law severance
• Agreements that haven’t been updated in years
• Changes to your role that were never reflected in a new contract

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Do I Have to Sign a Severance Package by My Employer’s Deadline?

No, you do not have to sign a severance offer by the deadline set by your employer.

In fact, employers often use short deadlines as a pressure tactic to push employees into accepting less than they’re legally entitled to. These deadlines are not legally binding – and signing too quickly can cost you tens of thousands of dollars.

You have up to two years from your termination date to pursue your full severance through a legal claim.

🕒 What you should know:

• You can ask for more time to review your severance offer
• Signing the offer may waive your right to negotiate for full compensation
• Once signed, most severance agreements are final and binding

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Should I Go to the Ministry of Labour?

No – if you’ve been fired without cause in Ontario, going to the Ministry of Labour can limit how much severance you receive.

The Ministry of Labour can only help you claim your minimum entitlements under the Employment Standards Act (ESA) – not your full common law rights, which could be worth far more.

Here’s why that’s a problem:

• ESA minimums may give you only a few weeks’ pay
• Common law severance can amount to months or even two years’ pay
• You can’t “double dip” – it’s one path or the other

✅ What to do instead:

Speak with an employment lawyer in Ontario first. If you’ve already filed with the Ministry, you may have two weeks to withdraw your complaint and pursue a better severance package through legal action.

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Wrongful Dismissal After Being Fired Without Cause

If you were fired without cause in Ontario and didn’t receive the full severance package you’re legally owed, you may have a case for wrongful dismissal.

Wrongful dismissal doesn’t mean you weren’t allowed to be let go – it means your employer failed to meet their legal obligations when ending your employment.

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Can I Get EI if I’m Terminated Without Cause?

Yes. If you’ve been fired without cause in Ontario, you are generally eligible to receive Employment Insurance (EI) – provided you meet the usual requirements (such as having enough insurable hours).

However, you can’t collect EI during your severance period.

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Think You Were Unfairly Dismissed? Here’s What You Can Do

If you believe you were fired unfairly, denied proper severance, or let go for questionable reasons, don’t sign anything yet.

Speak with an Ontario employment lawyer first. Our team can:

• Review your severance offer
• Analyze your employment contract
• Determine if your rights were violated
• Help you claim the compensation you’re owed

Samfiru Tumarkin LLP is one of the most experienced employment law teams in Canada. We’ve helped over 50,000 non-unionized employees secure the compensation they’re legally owed.

Find out why we were chosen as one of Canada’s Best Law Firms by The Globe and Mail. Contact us online today or call 1-855-821-5900 for a consultation, and take the first step toward protecting your rights and securing your financial future.

Get the advice you need – and the compensation you deserve.