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Reasonable Notice in Ontario: What You Are Actually Owed When You Are Terminated Without Cause
If you were terminated without cause in Ontario, your employer owes you notice or pay in lieu of notice. The amount depends on two different legal frameworks: the minimum set by Ontario's Employment Standards Act, 2000, and the significantly higher amount that courts award under common law. Most employees who accept the first offer they receive do not know the difference between these two amounts and many leave substantial compensation on the table as a result.
Unless your employment contract contains a valid, enforceable termination clause that clearly limits your entitlement to ESA minimums, you may be entitled to common law reasonable notice which is determined by your specific circumstances, not a fixed schedule. Many termination clauses fail to meet the standard required to limit notice to ESA minimums, which means many employees are owed more than they were initially told.
Were you terminated without cause in Ontario and offered notice based only on your ESA minimum?
If your employment contract has an unenforceable termination clause or no clause at all you may be entitled to significantly more. Get your contract reviewed before accepting any offer or signing a release.
Call: 1-800-771-7882 Speak With an Employment LawyerESA minimum notice in Ontario
Ontario's Employment Standards Act, 2000 sets the following minimum notice periods for most employees terminated without cause. These minimums cannot be contracted away and must be provided regardless of what your employment contract says.
| Length of service | Minimum ESA notice |
|---|---|
| Less than 1 year | 1 week |
| 1 year or more but less than 3 years | 2 weeks |
| 3 years or more but less than 4 years | 3 weeks |
| 4 years or more but less than 5 years | 4 weeks |
| 5 years or more but less than 6 years | 5 weeks |
| 6 years or more but less than 7 years | 6 weeks |
| 7 years or more but less than 8 years | 7 weeks |
| 8 or more years | 8 weeks (maximum) |
In addition to notice, employees with five or more years of service may also be entitled to statutory severance pay where the employer's payroll exceeds $2.5 million or a mass termination is occurring. Benefits must continue throughout the ESA notice period regardless of whether working notice or pay in lieu is provided.
Common law reasonable notice: the Bardal factors
Where no valid termination clause limits your entitlement, Ontario courts calculate reasonable notice using a framework established in Bardal v. Globe and Mail Ltd. (1960). The four Bardal factors considered together, not individually determine the reasonable notice period for your specific situation.
Typical reasonable notice ranges in Ontario
When a termination clause limits your notice entitlement
An employer can limit your notice entitlement to the ESA minimum but only where the employment contract contains a valid, enforceable termination clause that clearly complies with the ESA, is not ambiguous, and does not conflict with ESA rights anywhere in the agreement. Ontario courts have struck down many termination clauses for failing to meet this standard. A clause that violates the ESA in any way even in a provision you were never terminated under voids the entire termination framework and defaults your entitlement to common law reasonable notice.
This is one of the most important points for employees to understand. A termination clause that looks valid on its face may be void under the current state of Ontario case law. Do not assume the amount your employer is offering is the limit of what you are owed without having the contract reviewed. Our post on Dufault v. Ignace explains how one defective clause can void an entire termination framework.
Were you terminated without cause in Ontario and unsure whether the notice you were offered reflects your full entitlement?
The ESA minimum is the floor, not the ceiling. Where your termination clause is unenforceable or absent, common law reasonable notice applies and is frequently significantly higher. Get advice before signing any release.
Find Out What You Are Owed Or call us: 1-800-771-7882Frequently asked questions about reasonable notice in Ontario
What is the difference between ESA notice and common law reasonable notice in Ontario?
ESA notice is the statutory minimum set by Ontario's Employment Standards Act, 2000 it ranges from 1 week to a maximum of 8 weeks depending on length of service. Common law reasonable notice is calculated by courts based on the Bardal factors and is frequently significantly higher often several months to over a year for senior or long-service employees. Your entitlement depends on which system applies to your situation, which is determined by whether your employment contract has a valid termination clause.
Can I receive pay in lieu of notice instead of working through my notice period in Ontario?
Yes. Employers can provide notice in three ways: working notice where you continue to be employed through the notice period, pay in lieu where employment ends immediately and you receive a lump sum or salary continuance for the notice period, or a combination of both. The total value of your entitlement is the same regardless of which method is used. Benefits must continue through the ESA notice period regardless of which method applies.
How is common law reasonable notice calculated in Ontario?
Courts apply the four Bardal factors your length of service, age, the character of your employment, and the availability of similar work to determine a notice period that is reasonable in your specific circumstances. There is no fixed formula. The factors are assessed together, and courts also consider additional circumstances such as whether the employer induced you to leave secure employment to take the role. A lawyer can assess the realistic reasonable notice range for your specific situation.
What if my employment contract has a termination clause am I limited to what it says?
Only if the clause is valid and enforceable. A termination clause must clearly comply with Ontario's Employment Standards Act, 2000, must not be ambiguous, and must not conflict with ESA rights anywhere in the agreement. Many termination clauses in Ontario employment contracts fail to meet this standard and are void. Where the clause is unenforceable, your entitlement defaults to common law reasonable notice. Get your contract reviewed before assuming the clause is the limit of what you are owed.
Am I entitled to severance pay in addition to notice in Ontario?
Possibly. Statutory severance pay under Ontario's ESA applies where you have five or more years of service and your employer's total Ontario payroll is at least $2.5 million, or where a mass termination is occurring. Severance pay is a separate entitlement from termination notice and both may be owed. The maximum ESA severance is 26 weeks. Common law notice encompasses the full compensation period and is separate from the ESA severance calculation.
Do I have to accept the first notice offer my employer makes?
No. A first severance offer is rarely the final offer and may not reflect your full legal entitlement. You should not sign any release or accept any final payment without first having your contract reviewed and your entitlement assessed by a lawyer. Once you sign a release, you generally cannot pursue additional compensation that decision is permanent. Many employees who get legal advice recover significantly more than the initial offer.
Were you terminated without cause in Ontario and unsure what you are owed?
Common law reasonable notice is frequently significantly higher than what employers initially offer. Our team advises employees across Ontario on termination without cause, notice entitlements, and wrongful dismissal claims. Contact us for a confidential consultation before you sign anything.
Call us at 1-800-771-7882 or fill out the form below and we will be in touch.
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. ©