Frequently Asked Questions
Find answers to common questions about employment law in Ontario.
For Employees
Severance entitlements in Ontario depend on many factors including your age, length of service, position, salary, and availability of similar employment. The Employment Standards Act provides minimum entitlements, but common law severance is often significantly higher—sometimes up to 24 months of pay. Use our Severance Calculator for an estimate, or contact us for a proper assessment.
No. You should always have a lawyer review your severance package before signing. Employers often present their first offer as final, but there is almost always room for negotiation. Once you sign, you give up your right to pursue additional compensation. Take your time and get proper advice.
Wrongful dismissal occurs when an employer terminates an employee without providing adequate notice or compensation in lieu of notice. In Ontario, employees are entitled to reasonable notice of termination under common law, which is often much more than the minimums set out in the Employment Standards Act.
Yes, in most cases employers can terminate employees without cause—but they must provide proper notice or pay in lieu of notice. The amount depends on factors like your age, length of service, position, and the availability of similar employment. What employers cannot do is terminate without providing appropriate compensation.
Constructive dismissal occurs when an employer makes a fundamental change to your employment without your consent—such as a significant demotion, pay cut, or change in duties—forcing you to resign. In these cases, the law treats the resignation as a termination, and you may be entitled to severance.
In Ontario, the limitation period for wrongful dismissal claims is generally two years from the date of termination. However, you should not wait—evidence becomes harder to gather, and some claims have shorter deadlines. Contact a lawyer as soon as possible after termination.
Workplace harassment includes any vexatious comment or conduct that is known or ought to be known to be unwelcome. This can include bullying, intimidation, offensive jokes, unwanted physical contact, or creating a hostile work environment. A single serious incident can constitute harassment, or it can be a pattern of behaviour.
Under the Ontario Human Rights Code, employers have a duty to accommodate employees with disabilities to the point of undue hardship. This may include modified duties, flexible schedules, or workplace modifications. Employers cannot discriminate against employees because of disability, and termination due to disability-related absences may be a human rights violation.
For Employers
Proper termination requires providing adequate working notice or pay in lieu of notice, ensuring compliance with the Employment Standards Act, and avoiding any discriminatory grounds. The termination letter should be clear, professional, and not allege cause unless you are confident it is defensible. Having a lawyer review terminations before they happen can prevent costly litigation.
A well-drafted employment contract should include clear terms about duties, compensation, benefits, termination provisions, and any restrictive covenants. Termination clauses that limit severance to ESA minimums must be carefully drafted to be enforceable. We recommend having a lawyer prepare or review employment contracts.
Non-compete clauses are generally unenforceable in Ontario for employees, as of October 2021 amendments to the Employment Standards Act. There are narrow exceptions for executives and in connection with business sales. Non-solicitation clauses may still be enforceable if reasonably drafted.
Employers must take every precaution reasonable to protect workers, maintain a safe workplace, and ensure compliance with OHSA regulations. This includes having health and safety policies, conducting training, and investigating incidents. OHSA violations can result in significant fines and even personal liability for directors and supervisors.
Take every complaint seriously. Under OHSA, you are required to investigate and address workplace harassment. Investigations should be prompt, thorough, and impartial. Consider engaging an external investigator for serious allegations. Document everything and take appropriate corrective action. Failure to properly address complaints can result in liability.
Just cause termination means the employer alleges serious misconduct that justifies immediate dismissal without notice or severance. The bar for just cause is very high in Ontario. It typically requires serious dishonesty, willful misconduct, or conduct fundamentally inconsistent with the employment relationship. Poor performance alone is rarely sufficient.
Workplace investigations should be conducted promptly after a complaint is received. The investigator should be impartial (consider an external investigator for serious matters), interview all relevant parties, collect and preserve evidence, and prepare a written report with findings. Both the complainant and respondent should be treated fairly throughout the process.
Under the Employment Standards Act, employers must keep records for at least three years including: employee information, hours worked, wages paid, vacation time, and any agreements or authorizations. For OHSA compliance, you must also maintain training records, incident reports, and inspection records.
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