Wrongful Dismissal in Ontario: What It Means & What to Do

Being fired from your job is hard — especially if it feels unfair or sudden. In Ontario, thousands of people are let go each year without being paid the full compensation they’re owed. This is called wrongful dismissal.

Whether you were told you were fired “without cause,” let go after parental leave, or accused of something you didn’t do, you may have legal rights — and financial entitlements — your employer didn’t tell you about.

This guide explains what wrongful dismissal means in Ontario, how to recognize if it happened to you, and what steps to take to protect your income and your future.

Watch: Lior Samfiru explains how wrongful dismissal in Ontario works on the Employment Law Show.

What is Wrongful Dismissal in Ontario?

Wrongful dismissal happens when an employee is fired and not given the proper severance pay or advance notice required by law.

Many employers only offer the minimum amount required under Ontario’s Employment Standards Act (ESA) — but the full amount someone is owed is usually much higher. Under common law, severance can be as much as 24 months’ pay, depending on your age, role, and how long you worked there.

Wrongful vs. Unjust, Unfair, or Unlawful Dismissal

These terms sound familiar but mean different things under the law:

• Wrongful dismissal = fired without enough severance
• Unjust dismissal = applies only to certain federally regulated workers (like in banking or telecom)
• Unfair dismissal = not a legal term, but often used when the termination feels unfair
• Unlawful dismissal = may apply if the firing violates human rights (e.g. discrimination based on disability or pregnancy)

If you weren’t paid properly — regardless of the reason — it may still count as wrongful dismissal.

What Are Some Examples of Wrongful Dismissal?

You may have been wrongfully dismissed if:

• You were let go without cause but offered only ESA minimums
• You were fired “for cause” based on minor issues (like lateness or performance)
• Your job was changed significantly — like reduced pay, title, or hours — without your consent
• You were let go after taking medical leave, filing a complaint, or going on maternity leave
• You were dismissed during a company restructuring or merger but weren’t properly compensated

When Does a Termination Become Wrongful?

Termination becomes wrongful when your employer doesn’t follow the rules — especially around notice and compensation.

There are two main scenarios:

• Without cause: You’re let go for business or performance reasons, but not paid enough severance
• With cause (but without proof): You’re accused of misconduct, but the employer can’t justify denying severance

Ontario law requires employers to provide reasonable notice or pay in lieu of notice — not just a basic payout.

What is Constructive Dismissal?

Constructive dismissal Ontario happens when your employer doesn’t fire you outright— but changes your job so drastically that it’s like you were fired.

Examples include:

• A large cut in pay or hours
• A forced demotion
• Moving your job location without consent
• Creating a hostile or toxic work environment

If this happens and you’re not paid severance, it still counts as wrongful dismissal.

How Much Severance Can You Get in Ontario?

Severance in Ontario depends on several factors:

• Your age
• Your length of service
• Your position and salary
• How long it will likely take to find a similar job

Some employees may be owed up to 24 months’ pay — even if their employer only offered a few weeks.

How to Sue for Wrongful Termination in Ontario?

You don’t need to go to court right away. In most cases, employees file a wrongful dismissal claim to seek fair compensation. The goal is to:

• Recover the severance you were entitled to
• Address any damages from the way you were fired (e.g. mental stress, reputational harm)
• Settle the matter outside of court through negotiation

The process usually begins with a review of your termination and your employment history — and most claims are resolved through settlement, not trial.

How to File a Wrongful Dismissal Claim in Ontario

If you believe you were wrongfully dismissed, here’s what to do:

1. Don’t sign anything yet. Signing a release may limit your ability to claim more severance
2. Document everything. Write down what happened, who said what, and when
3. Gather your paperwork. Include your employment contract, pay stubs, reviews, termination letter, and emails
4. Use tools like the Pocket Employment Lawyer to assess your situation
5. Seek professional advice from an employment lawyer at Samfiru Tumarkin LLP before agreeing to any payout

How Long Do I Have to Sue for Wrongful Dismissal?

In Ontario, you generally have two years from the date of termination to file a claim for wrongful dismissal.

If you miss this deadline, you may lose your right to compensation — no matter how strong your case is.

That’s why it’s important to act quickly and confirm the actual termination date, especially if your employer used unclear or vague wording.

Can the Ontario Labour Board Help with Wrongful Dismissal?

No. The Ontario Labour Relations Board and the Ministry of Labour do not handle wrongful dismissal claims for most non-unionized employees.

These government agencies can only enforce minimum standards under the ESA — not your full common law rights.

What Not to Do After Being Fired

Making the wrong move after being let go can cost you thousands. Here’s what to avoid:

• Don’t sign your termination package or severance offer right away
• Don’t assume what you’ve been offered is “fair” just because HR said so
• Don’t rely only on ESA minimums — check your common law entitlements
• Don’t wait too long — delay can impact your claim

FAQs About Wrongful Dismissal in Ontario

Speak to an Employment Lawyer

If you were let go without receiving full compensation, your termination may qualify as wrongful dismissal. This includes situations where your employer underestimated what you were owed, used a misleading contract, or excluded parts of your compensation package — like bonuses, commissions, or benefits — from your severance.

In Ontario, individuals who are wrongfully dismissed may be entitled to as much as 24 months’ pay, depending on factors like age, length of service, and the ability to find new employment.

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