When it comes to terminating an employee, even experienced employers can run into legal trouble if key elements—like contracts and documentation—aren’t handled properly. This case study shows how one Ontario firm found itself facing a wrongful dismissal claim despite believing it had followed the right steps.

The Company and the Challenge

• Business Name: Harlow & Wells Consulting
• Industry: Professional Services
• Location: Ontario
• Legal Challenge: An employer believed they had properly terminated an underperforming employee, but faced a wrongful dismissal claim due to gaps in their process.

The Situation at a Glance

Harlow & Wells Consulting, a mid-sized professional services firm in Ontario, had an employee named Mark whose performance had been a concern for over a year. The employer had issued verbal and written warnings and even provided additional training. Despite their efforts, Mark’s work did not improve.

After what they believed was a fair and reasonable process, the firm decided to terminate Mark’s employment. They provided notice and a severance package that followed the minimum requirements under the Employment Standards Act, 2000 (ESA), confident they had handled the termination appropriately.

Two weeks later, they were blindsided—Mark filed a wrongful dismissal claim, asserting that he was entitled to significantly more severance under common law. The employer thought their process was airtight. It wasn’t. That’s when they reached out to Achkar Law.

Where Things Went Wrong

After reviewing the case, we identified several areas of legal risk:

❌ Outdated Employment Contracts

Mark’s contract lacked a properly drafted termination clause limiting severance to ESA minimums. Without this, he had a valid claim to common law entitlements, which can be significantly higher.

❌ Inconsistent Documentation

While the employer had issued warnings, the performance documentation was incomplete. Several incidents had been handled informally with no written record, weakening the employer’s position.

❌ ESA-Only Severance Package

The employer mistakenly believed the ESA dictated all severance requirements. In reality, many employees without enforceable termination clauses are entitled to common law notice or pay in lieu, depending on factors like length of service and role. 

What seemed like a straightforward termination quickly escalated into a dispute that could have been avoided with the right documentation and contractual protections.

How Achkar Law Helped

We provided both immediate and long-term support:

✅ Defending the Wrongful Dismissal Claim

We built a response that highlighted the employer’s efforts to support Mark’s performance, while identifying gaps that could be strategically addressed in negotiation.

✅ Negotiating a Settlement

Given the risks of litigation and the documentation gaps, we advised that a fair settlement would be more cost-effective. We negotiated a resolution that avoided court proceedings and minimized financial exposure.

✅ Improving Internal Practices

To reduce future risk, we worked with the employer to:

• Update their employment contracts with clear, enforceable termination clauses.
• Implement a structured performance management process with written records.
• Train managers on how to assess ESA and common law entitlements during terminations.

Lessons for Employers

This experience offered important reminders:

• Employment Contracts Must Be Up to Date – Without enforceable termination clauses, common law notice may apply—often resulting in higher severance costs.

• Document Everything – Verbal conversations are not enough. Proper written records of warnings, improvement plans, and performance issues are essential.

• Know the Difference Between ESA and Common Law – Many employers rely solely on the ESA, unaware that common law often entitles employees to much more unless explicitly limited by contract.

Harlow & Wells thought they had done everything right—until they faced a claim that exposed the cracks. With our help, they resolved the issue and improved their systems to avoid future disputes.

Are Your Termination Practices Putting You at Risk?

Even well-intentioned employers can face legal claims if contracts and documentation aren’t handled correctly. Don’t wait for a complaint to find out what’s missing.

Contact Achkar Law today to review your contracts and protect your business before it becomes a legal issue.

This case study represents a real-world legal issue based on actual matters handled by Achkar Law. Names and certain details have been changed to protect privacy while maintaining the accuracy of the legal principles involved.