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What Is Reasonable Notice?
When employment ends in Ontario, one of the most important legal requirements is the notice period. Notice periods ensure that employees are treated fairly and that employers comply with Ontario’s employment standards and common law obligations. Understanding what a notice period is and how it works is essential for anyone navigating a termination.
This article explains what a notice period is, how it works under the Employment Standards Act, 2000 (ESA) and the common law, and what factors determine notice entitlements in Ontario.
What Is a Notice Period?
A notice period is the amount of advance warning an employer must provide before ending employment without cause. The goal is to give the employee time to prepare for the transition and seek new work.
Employers can provide notice in three ways:
- Working notice: The employee continues working until the end date.
- Pay in lieu of notice: Employment ends immediately, but the employee receives payment equal to what they would have earned during the notice period.
- A combination of both.
Except in cases of just cause, employment cannot be terminated without notice or pay in lieu.
Working Notice vs. Pay in Lieu
- Working notice = continued employment.
- Pay in lieu = immediate termination with full payment for the notice period.
What Is the Notice Period in Ontario?
Ontario has two separate notice systems:
- ESA minimum notice, which applies to most employees
- Common law reasonable notice, which is often significantly higher
Unless a valid and enforceable employment contract limits notice to ESA minimums, individuals may be entitled to reasonable notice under the common law.
ESA Minimum Notice Period (Ontario)
Under ESA s.57, the minimum statutory notice period depends on the length of service:
| Length of Service | Minimum ESA Notice |
|---|---|
| Less than 1 year | No notice |
| 1 year | 1 week |
| 2 years | 2 weeks |
| 3 years | 3 weeks |
| 4 years | 4 weeks |
| 5 years | 5 weeks |
| 6 years | 6 weeks |
| 7 years | 7 weeks |
| 8+ years | 8 weeks (maximum) |
Other ESA requirements include:
- s.60 – Benefits must continue throughout the notice period
- s.61 – Rules for paying wages in lieu of notice
- s.64–67 – Severance pay rules for eligible employees
- s.2(1) – ESA exclusions, including for federally regulated employees covered by the Canada Labour Code
What Is Reasonable Notice?
Reasonable notice is a court-developed concept under the common law that often provides a significantly longer notice period than ESA minimums.
Courts rely on the four Bardal factors, established in Bardal v. Globe & Mail Ltd. (1960 ONCA), including and not limited to:
- Length of service
- Age
- Character of employment (role and responsibilities)
- Availability of similar employment
Additional key decisions include:
- Honda Canada Inc. v. Keays (2008 SCC): Reinforces proportionality and fairness in the notice assessment
- Waksdale v. Swegon North America Inc. (2020 ONCA): If a termination clause violates the ESA in any way, the employee may receive full common law reasonable notice
Minimum vs. Reasonable Notice
| Type of Notice | Duration | Source of Rights | Notes |
|---|---|---|---|
| ESA Minimum Notice | Up to 8 weeks | Statute | Applies to most employees in Ontario |
| Common Law Reasonable Notice | Several months to 24+ months | Court decisions | Depends on Bardal factors |
Typical Ranges
- Short-service employees: 1–3 months
- Mid-level roles: 6–12 months
- Long-service or senior roles: 12–24 months or more
Employment Contracts and Notice Periods
An employment contract may limit entitlements to ESA minimums, but only if the termination clause:
- Fully complies with the ESA
- Is clear, unambiguous, and enforceable
- Does not conflict with ESA rights anywhere in the agreement
If the clause is defective, the employee may receive full reasonable notice.
⚠️ Key Risks to Be Aware of
- Termination clauses that do not comply with the ESA are often struck down.
- Insufficient notice can result in a wrongful dismissal claim.
- Just cause for dismissal is difficult to prove and reserved for the most serious misconduct.
Other Laws That May Affect Notice Periods
Notice obligations sometimes intersect with other Ontario or federal laws, including:
- Human Rights Code (the Code)
- Occupational Health and Safety Act (OHSA)
- Workplace Safety and Insurance Act (WSIA)
- Labour Relations Act (LRA) (unionized workplaces)
- Canada Labour Code (CLC) (federally regulated employees)
Practical Guidance on Notice Periods
Understanding notice periods is essential when managing termination.
Key considerations include:
- ESA minimums are only the starting point
- Common law reasonable notice may apply
- Benefits must continue during the notice period
- Documentation, clarity, and legal compliance reduce disputes
- Individual circumstances affect notice entitlements
As Christopher Achkar, employment lawyer and founder of Achkar Law, explains:
“Notice periods can significantly impact both employees and employers, affecting rights, obligations, and planning for transitions. Consulting an experienced employment lawyer can help ensure you navigate these situations fairly and in full compliance with the law.”
How Achkar Law Can Help
Notice periods can be complex, especially when questions arise about ESA minimums, reasonable notice, or whether a termination clause is enforceable.
Achkar Law provides clear, practical guidance on all aspects of termination and notice entitlements.
Achkar Law assists with:
- Reviewing employment contracts and termination clauses
- Assessing ESA and common law notice entitlements
- Advising on termination decisions and pay in lieu
- Addressing human rights, reprisal, and related employment law issues
- Representing clients in wrongful dismissal matters
Contact an Ontario Employment Lawyer
If you have questions about a notice period or need guidance on a termination, Achkar Law can help you understand your rights and obligations and provide support tailored to your situation.
The article in this client update provides general information and should not be relied on as legal advice or opinion. This publication is copyrighted by Achkar Law Professional Corporation and may not be photocopied or reproduced in any form, in whole or in part, without the express permission of Achkar Law Professional Corporation. ©