If you were fired in Ontario and not paid what you’re legally owed, your dismissal may be wrongful — even if your employer said the termination was “without cause,” or claimed there was a business reason for letting you go.
In Ontario, most terminations are legal if proper notice or severance is provided.
When an employer fails to provide the full amount required by law, the termination becomes a wrongful dismissal.
Before signing anything, it’s important to understand what your severance should actually include.
What Is Wrongful Dismissal in Ontario?
A wrongful dismissal happens when an employer ends a non-unionized employee’s job without providing proper notice, severance pay, or both.
It is not about whether the firing was unfair, unreasonable, discriminatory, or done in bad faith.
It is not about your employer’s reason for letting you go — unless they allege cause and fail to prove it.
A termination becomes wrongful when your employer:
- Offers less severance than the law requires
- Relies on a termination clause that is invalid or unenforceable
- Provides only ESA minimums, even though you’re owed much more
- Claims just cause without meeting the extremely high standard
- Treats a resignation or job change as voluntary when it is actually a constructive dismissal
If you lost your job and were not paid proper severance, the dismissal may be wrongful — regardless of why the employer ended the relationship.
Types of Termination in Ontario
1. Termination Without Cause
This is the most common type of termination.
In Ontario, employers can terminate employees without cause for almost any business reason. However, they must provide proper notice or severance.
A “without cause” termination becomes wrongful when the employer:
- Pays below common law entitlements
- Relies on an unenforceable contract
- Excludes bonuses, benefits, or commissions
- Uses ESA minimums that don’t apply
2. Termination With Cause
A “termination for cause” is rare in Ontario.
The legal standard is extremely high and requires serious misconduct that makes continuing the employment relationship impossible.
If an employer alleges cause but can’t prove it, the employee is still owed full severance. This becomes a wrongful dismissal.
3. Constructive Dismissal
A constructive dismissal in Ontario occurs when your employer makes major changes to your job without your consent, such as:
- A significant reduction in pay or hours
- A demotion or loss of responsibilities
- A forced move to a new location
- Creating a toxic or hostile work environment
If these changes effectively end the employment relationship and you are not paid severance, the dismissal becomes wrongful.
How Much Severance Are You Owed in Ontario
There is no fixed “rule” for severance, such as one week or one month per year.
While the Employment Standards Act provides the minimum, most employees are owed much more under common law severance in Ontario.
Your severance pay may depend on factors such as:
- Age
- Length of service
- Position and level of responsibility
- Availability of similar employment
- Total compensation, including bonuses, benefits, and allowances
It is very common for employers to offer tens of thousands of dollars less than what an employee is owed.
⚠️ If you received a severance package, do not sign anything until you know your full rights.
Before You Sign a Severance Offer
Severance packages often contain strict deadlines.
Many employees sign too quickly — and lose the ability to claim additional compensation later.
Before you sign:
- Remember that severance offers are negotiable
- Signing a release usually ends your rights permanently
- Offers often exclude key components like bonuses or benefits
- Employers frequently start with the lowest possible amount
💡 Even if your employer gave you a deadline, you can often request more time to review your offer.
Wrongful Dismissal and Your Employment Contract
The wording of your employment contract can affect how much severance you’re owed.
However:
- ❌ Many termination clauses in Ontario are not enforceable
- ❌ Clauses that breach the ESA in any way are usually invalid
- ❌ Outdated or unclear contracts may be overridden by common law
💡 If a termination clause is invalid, you may be owed significantly more than what your employer offered.
How Wrongful Dismissal Claims Are Resolved
Most wrongful dismissal claims in Ontario do not go to court.
A typical process looks like this:
- Your contract and termination letter are reviewed
- Your severance entitlements are calculated
- Your employer receives a legal position
- The matter is resolved through negotiation or settlement
💡 Court is usually a last resort, but having legal representation quickly encourages fair resolutions.
How Long Do You Have to Sue?
In most cases, you have two years from the date of termination to start a wrongful dismissal claim.
However, waiting too long can:
- Make it harder to gather documents
- Reduce leverage
- Complicate negotiations
Getting legal advice early helps protect your rights.
Common Questions About Wrongful Dismissal in Ontario
Can I refuse to sign my termination papers?
Yes. Your employer can’t force you to sign a severance package or release.
Do I get severance if I’m fired without cause?
Usually yes — unless your employer proves cause or has a valid, enforceable termination clause.
Is discrimination or retaliation a wrongful dismissal?
These may create additional claims (e.g., human rights or reprisal), but they do not define wrongful dismissal. A dismissal is wrongful when proper severance is not paid.
Do I need a lawyer?
You are not required to hire a lawyer, but legal advice helps ensure you receive the full compensation you’re entitled to. Many cases resolve quickly with proper representation.
Speak to an Employment Lawyer
If you were fired in Ontario and not paid proper severance, your dismissal may be wrongful.
At Samfiru Tumarkin LLP, we have helped 50,000+ employees across Canada recover millions in compensation for wrongful dismissal and severance claims.
- No upfront fees in many cases
- Thousands of 5-star Google reviews
- Recognized as one of Canada’s Best Law Firms by The Globe and Mail
If you live in Ontario, you can speak directly with a:
📞 Call us at 1-855-821-5900 or request a confidential consultation.
⚠️ Unionized? Only your union can represent you. By law, employment lawyers can’t represent unionized employees.