Unfair termination claims can lead to significant financial and reputational risks for employers. Without proper legal advice, businesses may find themselves facing wrongful dismissal lawsuits, human rights complaints, or employment standards violations. Working with an employment lawyer can help employers understand their obligations, reduce risk, and take proactive steps to prevent costly disputes.

This article outlines how Ontario employers can protect their organizations from wrongful dismissal claims and stay compliant with workplace laws. 

Understanding Wrongful Dismissal in Ontario

In Ontario, employers must comply with employment laws when terminating employees. A termination may lead to legal claims if:

• The dismissal breaches the employment contract
• The employer fails to provide minimum termination pay or severance under the Employment Standards Act, 2000 (ESA)
• The termination is based on a protected ground under the Ontario Human Rights Code
• The employee is terminated for asserting their legal rights, such as filing a complaint

In addition to ESA minimums, employees may be entitled to common law notice, which is typically more generous. Failing to meet these obligations can result in costly legal proceedings.

How an Employment Lawyer Helps Employers Manage Risk

Employment lawyers assist employers by reviewing contracts, policies, and terminations to ensure they are legally compliant and defensible. Here’s how they can help:

Draft Legally Compliant Employment Contracts

Clear contracts help set expectations and reduce disputes. A lawyer can:

• Draft termination clauses that meet ESA and common law requirements
• Include enforceable confidentiality or non-solicitation provisions
• Incorporate alternative dispute resolution mechanisms where appropriate

Properly drafted contracts reduce the risk of wrongful dismissal or constructive dismissal claims. 

Review Termination Practices and Compliance

Employers must:

• Follow the ESA for notice, pay in lieu, and severance pay
• Ensure no discriminatory reasons are involved in the termination
• Avoid actions that may be viewed as retaliatory or in bad faith

Legal review of termination procedures helps avoid mistakes that can trigger legal challenges.

Support with Documentation and Investigations

When terminating for cause or due to misconduct, documentation matters. Lawyers can help:

• Conduct or oversee fair workplace investigations
• Document performance issues or policy breaches
• Draft legally sound termination letters

Proper documentation strengthens the employer’s position if the termination is challenged.

Respond to Legal Claims and Disputes

If a dispute arises, an employment lawyer can:

• Negotiate a resolution, including severance terms
• Represent the employer in court or before tribunals
• Advise on settlement agreements that reduce future risk

Best Practices to Reduce Termination-Related Risks

Employers can prevent disputes by taking proactive steps:

1. Implement Written Termination Policies
   Outline procedures for notice, severance, and cause-based terminations.
2. Follow a Fair Termination Process
   Provide proper notice or pay in lieu and keep a clear record of the decision.
3. Offer Compliant Severance Packages
   Ensure packages meet statutory and potential common law entitlements.
4. Train Managers and HR Staff
   Educate team members on legal obligations during the termination process.
5. Seek Legal Advice Before Terminating
   Early legal review can prevent small mistakes from turning into lawsuits.

Conclusion

Wrongful dismissal claims can be costly and disruptive. Ontario employers who work with employment lawyers and implement strong termination practices reduce the risk of legal action and protect their organizations.

Contact Achkar Law

If your organization is facing a potential workplace dispute or needs legal advice before terminating an employee, Achkar Law can help. We assist Ontario employers with employment contracts, severance packages, and workplace policies to ensure legal compliance and reduce liability. Contact us today to speak with our legal team.

Call toll-free: 1-800-771-7882 | Email: [email protected]