Wrongful dismissal occurs when an employee is terminated without receiving proper notice or fair compensation, as required under Ontario law.
This can happen when:
Importantly, wrongful dismissal is usually not about whether the employer had a reason to end the job.
It’s about whether the employee was compensated properly.
In Ontario, employers may terminate employment but they must do so lawfully by providing reasonable notice or pay in lieu of notice. When they fail to meet this obligation, the dismissal may be wrongful.
Key point: Many employees are offered the minimum, not what they are actually entitled to under the law. Before accepting or signing any termination agreement, it’s important to understand your rights and options.
Before accepting or signing any termination agreement, it’s important to understand your rights and options.
This page explains how wrongful dismissal works in Ontario and how employees are commonly affected. Each section links to more detailed guidance where helpful.
Use our free severance calculator to get an instant estimate based on your years of service, age, and role, before you speak to anyone.
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GINA SIMONATypes of Dismissal That Can Be Wrongful
Not every termination is wrongful. However, certain types of dismissals commonly raise legal issues when employees are not treated or compensated properly.
At a high level, wrongful dismissal in Ontario usually falls into one of the following categories:.
Termination Without Cause
This is the most common situation. An employer may end employment for business or performance-related reasons, but must provide reasonable notice or severance pay.
If the compensation offered is inadequate, the dismissal may be wrongful.
Read more: Termination Without Cause in Ontario
Termination for Cause
Being terminated “for cause” allows an employer to deny severance but the legal threshold is very high.
If the alleged misconduct does not justify immediate dismissal, the employee may still be entitled to compensation.
Read more: What Counts as ‘Cause’ for Termination in Ontario — and What Doesn’t
Constructive Dismissal
A dismissal can also occur without an explicit termination. Significant changes to pay, duties, hours, or work conditions made without consent may legally amount to a dismissal.
If severance is not provided, this too can lead to a wrongful dismissal claim.
Each of these situations is assessed differently under Ontario law, and the outcome often depends on the specific facts of the case.
Read more: Constructive Dismissal in Ontario: When Employers’ Actions Force a Resignation
Not sure about your rights after termination? Our team of employment law experts can help you understand your entitlements.
Contact usHow Severance and Notice Work in Ontario
When an employment relationship ends, Ontario law requires employers to provide reasonable notice of termination or compensation in place of notice.
This obligation can be met in different ways, including:
What often causes confusion is the difference between minimum statutory entitlements and what an employee may be owed under common law. In many cases, the minimum amount offered by an employer does not reflect the employee’s full legal entitlement.
Severance and notice are influenced by several factors, such as:
Even if any termination clause in the employment contract puts a limit on the reasonable notice, an employment lawyer may be able to prove that termination clause as void or unenforceable.
Because these factors vary from case to case, severance is not calculated using a fixed formula. This is why reviewing a termination package before accepting it is important.
Not sure about your rights after termination? Our team of employment law experts can help you understand your entitlements.
Contact usCommon Myths About Wrongful Dismissal
Many employees misunderstand their rights after termination. These misconceptions often lead people to accept less than they are legally entitled to.
“I Was Fired Without Cause, So the Employer Can Do Anything”
Not true. Employers may terminate without cause, but they must still provide reasonable notice or proper severance. Failing to do so can result in wrongful dismissal.
“I Have to Sign My Severance Offer Right Away”
You are not required to sign immediately. Employers often impose short deadlines, but employees are typically entitled to time to review an offer and seek legal advice.
“If I Was on Probation, I Have No Rights”
Probation does not automatically remove your rights. In some situations, employees on probation may still be entitled to notice or compensation, depending on the circumstances and the employment contract.
“Severance Is Just a Few Weeks Per Year of Service”
There is no fixed formula. Severance is based on multiple factors, not a simple calculation. Many employees are owed significantly more than they are initially offered.
Understanding what the law actually says rather than relying on assumptions can make a meaningful difference in the outcome of a termination.
Not sure about your rights after termination? Our team of employment law experts can help you understand your entitlements.
Contact usWhat to Do If You’ve Been Terminated
What you do immediately after termination can have a significant impact on your legal options and potential compensation.
If you’ve been let go, consider the following steps:
Early advice is often about preserving options, not escalating conflict.
Not sure about your rights after termination? Our team of employment law experts can help you understand your entitlements.
Contact usWhy Legal Advice Matters in Wrongful Dismissal Cases
Wrongful dismissal cases often come down to details how the termination was handled, what was offered, and what the law actually requires in your specific situation.
Employment law in Ontario is not one-size-fits-all. Factors such as age, role, length of service, and future employability can significantly affect what an employee is entitled to receive. These nuances are not always reflected in standard termination packages.
Legal advice helps ensure that:
Many wrongful dismissal matters are resolved through discussion and negotiation, without the need for court proceedings. Early guidance is often focused on achieving a fair outcome, not escalating disputes.
Understanding your position before taking action allows you to move forward with confidence.
Not sure about your rights after termination? Our team of employment law experts can help you understand your entitlements.
Contact us
At Taman Singh Law, your needs come first. We deliver professional, timely, and practical legal services, recognizing that the legal process can feel intimidating.
From our initial consultation, we prioritize excellent customer and legal service, ensuring you are well-informed and supported every step of the way.
We are dedicated to achieving the best possible results for you through a focused and efficient strategy, customized to your individual requirements. Count on us to be your trusted support when you need it most.
Taman Singh is a lawyer at RZCD Law Firm LLP, a firm with a long-standing commitment to the Greater Toronto Area since 1993.
If you’ve been wrongfully dismissed, you’re not alone and you likely have more rights than you think.
Termination without cause means your employer ended your employment without alleging misconduct. Wrongful dismissal is what happens when they fail to provide proper notice or severance when doing so. The issue is not whether they had a reason to let you go it is whether you were compensated properly under Ontario law.
There is no fixed formula. Common law severance is based on your length of service, age, role, and how difficult it will be to find comparable work. These factors combined often result in entitlements significantly higher than the ESA minimum which is why reviewing any offer before signing matters.
Yes. The legal threshold for just cause in Ontario is very high. Minor performance issues or isolated incidents rarely meet it. If the cause alleged does not hold up legally, you may be entitled to full severance and notice and in some cases, additional damages.
Most wrongful dismissal matters are resolved through negotiation, without litigation. Many employees receive improved settlements simply by having a lawyer engage on their behalf. However, deadlines apply getting advice early keeps your options open.
Taman Singh Law represents employees exclusively across Toronto, Brampton, Mississauga, and the broader GTA. The firm reviews termination packages, negotiates severance, and handles wrongful dismissal claims with consultations available in English, Hindi, Punjabi, Urdu, Tamil, and Gujarati.