Termination Without Cause in Ontario: What You Need to Know

Losing a job, whether you’re the employee being let go or the employer doing the letting go, is a tough situation all around. But imagine this: You’re handed a pink slip, and it’s not even because you did something wrong. Confusing, right? Well, that’s what happens when you are involved in a termination without cause. Read on to understand what this means and what you may be entitled to in such a situation.

What Is a Termination Without Cause?

In Ontario, an employer has the legal right to end an employee’s employment if it determines that it no longer wishes to keep the employee in its workforce.

A termination without cause, in the context of Ontario employment law, refers to the termination of an employee’s employment contract by the employer for reasons that are not related to the employee’s performance or misconduct. In other words, it’s when an employer decides to end an employee’s employment for reasons such as restructuring, downsizing, or other business-related reasons, rather than due to any fault or wrongdoing on the part of the employee.

Can Anyone be Terminated Without Cause?

In Ontario, and in many jurisdictions, employers generally have the right to terminate employees without cause. However, this right is subject to certain legal restrictions and considerations. Here are some key points to keep in mind:

Employment Contracts

The terms of an employee’s termination without cause can be influenced by their employment contract. If the employment contract specifies the notice period or severance pay in the event of termination without cause, both the employer and the employee are typically bound by these terms.

Statutory Rights

The Employment Standards Act (ESA) in Ontario sets out minimum standards for employee rights, including those related to termination. Even if an employment contract doesn’t explicitly address termination without cause, the ESA provides certain minimum entitlements regarding notice or pay in lieu of notice, severance pay, and other considerations based on an employee’s length of service.

Discrimination and Human Rights

Employers cannot terminate an employee without cause in a discriminatory manner or for reasons that violate human rights legislation. This means that terminations without cause should not be based on factors such as an employee’s race, gender, religion, disability, or other protected characteristics.

Good Faith and Fair Dealing

Employers are generally expected to act in good faith and deal fairly with employees when terminating them without cause. This may include providing reasonable notice or pay in lieu of notice and adhering to any other contractual or statutory obligations.

Common Law Considerations

In addition to statutory requirements, common law principles may also play a role in determining an employee’s entitlements upon termination without cause. Courts have sometimes awarded employees more substantial notice periods or severance pay than what is required by the ESA, depending on factors such as the employee’s age, length of service, and the nature of their job.

Further, unionized or federal workplaces have different rules. For instance, federal employees generally cannot be terminated without cause under the Canada Labour Code (subject to narrow exceptions).

What Are My entitlements When I’m Terminated Without Cause?

When an employee is terminated without cause, they are typically entitled to certain rights and compensation, which may include:

Notice or pay in lieu of notice

The Employment Standards Act (ESA) in Ontario requires that employers provide notice of termination or pay in lieu of notice to employees who are terminated without cause. The notice period or pay amount is typically based on the employee’s length of service and other factors.

Severance pay

In addition to notice or pay in lieu of notice, some employees may also be entitled to severance pay under the ESA if they meet certain criteria, such as having worked for a large employer and having at least five years of service.

Continuation of benefits

Employers are generally required to continue providing benefits like health and dental insurance during the notice period.

Access to employment insurance (EI)

Employees terminated without cause are usually eligible to apply for Employment Insurance  benefits through Service Canada.

It’s essential for both employers and employees to understand their rights and obligations when it comes to terminations without cause, as they can have significant legal and financial implications.

What If I Was Unfairly Dismissed?

If you believe that you have been unfairly dismissed from your job in Ontario, there are steps you can take to address the situation:

Do Not Sign Anything

Signing a release, also known as a release of claims or a settlement agreement, is a common step when an employer and employee come to an agreement regarding the terms of separation, especially in cases of termination. In Ontario, for a release to be valid, it must be entered into voluntarily, without duress or coercion. You have a reasonable amount of time to consider the terms of the release and seek legal advice if desired.

Review Your Employment Contract

First, review your employment contract to understand the terms and conditions of your employment, including any clauses related to termination. It’s essential to know if there are any contractual obligations your employer may have breached.

Document Everything

Throughout this process, it’s crucial to document all communications, including emails, letters, and conversations related to your dismissal. This documentation can be valuable if you need to pursue a legal claim.

Consult an Employment Lawyer

If you believe you were unfairly dismissed and your concerns are not addressed through internal processes or mediation, you may want to consult with an employment lawyer. They can provide legal advice, assess the strength of your case, and help you pursue legal action if necessary.

Remember that the specific circumstances of your dismissal will determine the best course of action. Employment law can be complex, and seeking legal advice early in the process can help you navigate your rights and options effectively.

Contact Us

If you are an employer and are facing a wrongful dismissal claim, or an employee who believes that you’ve been wrongfully dismissed, our team of experienced workplace lawyers at Achkar Law can help.

Contact us today at 1 (800) 771-7882 or email [email protected] , and let us help you find the solutions you need to move forward.

Related Topics

• Choosing An Employment Lawyer In Ontario
• When Should I Hire An Employment Lawyer?
• Ontario Employment Standards Act, 2000: Your Handbook