A wrongful dismissal in Ontario generally occurs when an employer ends a non-unionized employee’s employment without providing the notice or compensation required by their contract and the law. You may have a claim even if your employer has already offered you a severance package.
The key question is not simply whether your employer had a reason to let you go. It is whether you are receiving everything you are legally owed. Your employment contract, years of service, age, position and compensation can all affect that assessment.
Samfiru Tumarkin LLP helps non-unionized employees across Ontario understand their rights, challenge inadequate severance offers and pursue compensation after losing their jobs.
Before you sign, always check first. An employer’s severance offer is not necessarily your full entitlement. Have your termination letter, employment contract and proposed settlement reviewed before accepting.
On This Page:
- 1. Types of Wrongful Dismissal
- 2. Wrongful Dismissal Payout
- 3. How to File a Wrongful Dismissal Claim
- 4. Your Employment Contract & Wrongful Dismissal
- 5. Deadline for Legal Action
- 6. FAQ
- 7. Get Legal Advice
Types of Termination in Ontario
How your employment ended helps determine what compensation you can claim and what your employer must prove.
Termination Without Cause
A termination without cause means your employer is ending your employment without relying on serious misconduct to avoid notice obligations. A restructuring, position elimination or decision that you are no longer a good fit can fall into this category.
A without-cause dismissal is not automatically wrongful. However, you may have a claim if the notice or compensation provided falls short of your legal entitlement. Employers also can’t dismiss someone for a prohibited reason, such as discrimination or retaliation for exercising protected rights.
Termination With Cause
In a termination with cause, an employer alleges misconduct serious enough to justify dismissal without common-law notice or pay. Writing “for cause” in a termination letter does not make the allegation legally valid.
Even where common-law just cause exists, statutory termination entitlements may still be owing because Ontario’s Employment Standards Act uses a narrower misconduct exception. Have the allegations reviewed before accepting that you are owed nothing.
Constructive Dismissal
You do not always have to be formally fired to have a claim. A constructive dismissal can arise when an employer makes a substantial, unauthorized change to your employment or creates working conditions that fundamentally undermine the employment relationship.
Examples can include a significant pay cut, demotion or serious reduction in responsibilities. Get advice before resigning, refusing work or accepting new terms. Your response can affect your rights.
Our wrongful dismissal vs. constructive dismissal guide explains how the two concepts connect.
Wrongful Dismissal Settlements in Ontario: Payouts and Compensation
There is no single payout that applies to every wrongful dismissal in Ontario. A settlement is a negotiated agreement to resolve a claim. Its value depends on your legal entitlements, the compensation you have lost, the evidence and the issues in dispute.
An average settlement figure or a rule such as “one month per year of service” can’t tell you whether your employer’s offer is fair. Two employees with the same salary and years of service can have very different claims.
ESA Minimums vs. Common-Law Compensation
For employees covered by Ontario’s Employment Standards Act (ESA), the following distinctions matter:
| Type of entitlement | What it means |
|---|---|
| ESA termination notice or pay | Qualifying employees generally receive one to eight weeks of notice, termination pay instead of notice, or a combination. Special mass-termination rules can require up to 16 weeks. |
| ESA severance pay | A separate payment for employees who meet the statutory eligibility requirements. It can reach 26 weeks of pay and is additional to ESA termination notice or pay. |
| Common-law notice or compensation | Where an enforceable contract does not validly limit notice entitlements, common-law reasonable notice may apply. Depending on the circumstances, it can provide substantially more compensation than ESA minimums. |
These are not three amounts you automatically add together. A proper assessment accounts for notice and payments already provided, without counting the same compensation twice.
Our Ontario severance pay guide explains the entitlement rules in more detail.
What Affects Your Wrongful Dismissal Payout?
When common-law notice applies, important factors include your age, length of service, position and the availability of comparable work. Your employment contract can also affect which notice entitlements apply.
The financial assessment should look beyond base salary. Depending on your circumstances and the applicable contract terms, your claim may include compensation for lost bonuses or commissions, benefits and other amounts you would have received during the notice period.
Your efforts to find comparable employment and earnings from a new job can also affect a common-law claim. Keep records of applications, interviews and offers. Learn more about the duty to mitigate after losing your job.
Ontario Wrongful Dismissal Case Examples
These are court awards secured by Samfiru Tumarkin LLP, not negotiated settlements or a standard payout scale.
24 months’ pay and benefits for a long-service employee: In Visaggio v. Joynt-Dent Inc., our firm represented an Ottawa dental hygienist with more than 33 years of service. The court awarded 24 months’ pay and benefits. After crediting notice and payments already provided, the compensation award was $110,294, with legal costs awarded separately. Read about the Visaggio case.
Additional compensation after a termination clause failed: In Alarashi v. Big Brothers Big Sisters of Toronto, our firm successfully challenged a termination clause relied on by the employer. The employee, who had approximately four years of service, received $9,033.44 in additional compensation, plus a separate legal costs award. Read about the Alarashi case.
Start by checking your severance. Use our Severance Pay Calculator for an initial estimate. A legal review can then assess your contract, compensation and the specific terms of your employer’s offer.
For more on assessing an offer, negotiating compensation and reviewing a release, see our wrongful dismissal settlements guide.
How to File a Wrongful Dismissal Claim in Ontario
Starting a lawsuit is not always the first step. Begin by understanding your entitlement, preserving your records and choosing the right process for your claim.
Step 1: Gather Your Documents
Collect your employment contract and amendments, termination letter, severance offer, pay statements, bonus or commission records and benefits information. Save relevant communications and keep a record of your job search.
Step 2: Review the Offer Before Accepting
Compare the proposed package with your legal entitlement, not just the number of weeks offered. A review should consider your contract, all relevant compensation and any release the employer wants you to sign.
Signing a release can prevent you from pursuing additional compensation. Get advice before accepting terms you do not fully understand.
Step 3: Seek a Negotiated Resolution
An employment lawyer can explain where the offer falls short, present the supporting evidence and negotiate with your employer. A wrongful dismissal dispute can be resolved without a trial.
Step 4: Start a Court Claim Where Necessary
If the dispute can’t be resolved through negotiation, a civil claim may be necessary. This involves choosing the appropriate court, preparing the claim, filing it and serving the employer within the applicable rules and deadlines.
Negotiations can continue after a lawsuit begins. Filing a claim does not necessarily mean the case will proceed to trial.
Should You Contact the Labour Board or Ministry of Labour?
Ontario’s Ministry of Labour handles employment standards complaints. That process can address ESA entitlements, but it does not award common-law wrongful dismissal damages. A labour-board inquiry is not a substitute for a civil wrongful dismissal claim.
Check your options before filing an employment standards complaint. You generally can’t pursue an ESA termination or severance complaint and a civil wrongful dismissal action for the same termination. If you have already filed a complaint, get advice promptly: a two-week withdrawal window may be important to preserving your options.
How Your Employment Contract Affects a Wrongful Dismissal Claim
An enforceable termination clause can limit your notice or severance entitlement, sometimes to ESA minimums. It cannot take away minimum protections that apply to you under the ESA.
Signing a contract does not automatically make its termination clause enforceable. The wording, compliance with employment standards and circumstances in which the agreement was made all matter.
If the clause is unenforceable, common-law notice may apply instead, potentially increasing what you are owed. Not having a written contract does not mean you have no rights.
Before accepting your employer’s interpretation, have your employment contract reviewed. Our guide to termination clauses in Ontario explains the issues that can affect enforceability.
How Long Do You Have to Sue for Wrongful Dismissal in Ontario?
You generally have two years to sue your employer for wrongful dismissal in Ontario. This is the legal time limit for starting a civil claim to pursue the compensation you are owed—not a deadline your employer gets to decide.
The limitation period generally runs from when your claim was discovered or reasonably should have been discovered. Have your specific deadline confirmed rather than assuming the clock starts when your severance payments stop.
Does Your Employer’s Severance Deadline Change Your Right to Sue?
No. Your right to full severance pay does not expire after 24 hours, five days or the signing deadline in your termination letter. An employer-imposed deadline is not a legally enforceable cutoff for pursuing the severance you are owed.
Your employer cannot eliminate your legal entitlements by telling you to sign immediately. Missing the company’s deadline alone does not prevent you from challenging an inadequate package or suing for wrongful dismissal.
Before you sign, always check first. Don’t let a short deadline pressure you into accepting less than you are owed. Signing a valid release can prevent you from seeking additional compensation. Have Samfiru Tumarkin LLP review your severance offer before you agree to its terms.
Get advice promptly even though the employer’s deadline does not determine your rights. Other employment claims can have shorter deadlines, and settlement discussions do not automatically extend the time to sue.
Frequently Asked Questions About Wrongful Dismissal in Ontario
Can I sue if I was fired for no reason?
You may have a claim if your employer failed to provide the notice or compensation you were legally owed. For many provincially regulated, non-unionized employees, an employer does not need to establish misconduct to end employment. A wrongful dismissal claim does not require you to prove that your employer disliked you or acted maliciously.
Do I get severance if I am fired without cause?
You may be entitled to notice, pay instead of notice and other compensation. The amount depends on your circumstances, applicable employment standards and any enforceable contract terms. A valid termination clause may limit your entitlement, but it cannot remove ESA minimum protections that apply to you.
Can I refuse to sign my termination papers?
Yes. You do not have to accept a settlement or sign a release simply because your employer requests it. Have the documents reviewed before agreeing to give up potential claims.
What if I was fired because of discrimination or retaliation?
A dismissal involving discrimination or prohibited retaliation may create additional claims and remedies. Paying severance does not make a discriminatory or retaliatory dismissal lawful. These issues should be assessed alongside your notice and compensation entitlements.
How long does a wrongful dismissal settlement take?
There is no fixed timeline. It depends on the issues in dispute, the available evidence and how the employer responds. Some disputes can be resolved through negotiation without a lawsuit; others require formal proceedings. Your lawyer should explain the likely next steps for your circumstances.
Speak With an Ontario Wrongful Dismissal Lawyer
Lost your job or received a severance offer? Before accepting the package, find out whether it reflects everything you are legally owed.
Samfiru Tumarkin LLP helps non-unionized employees assess their termination, review employment contracts and pursue additional compensation when an employer’s offer falls short. Our team can explain your options and handle negotiations on your behalf.
Wrongful Dismissal Help Across Ontario
We assist employees throughout Ontario. Explore our wrongful dismissal services in:
You do not need to live in one of these communities to get help. Our employment law team assists non-unionized employees across the province.
Before you sign, always check first. Have your severance offer reviewed or call 1-855-821-5900.