Employment Law

Wrongful dismissal and severance packages

The vast majority of employment disputes in Ontario revolve around one question: were you given adequate notice or severance pay when you were let go?

Under the Employment Standards Act (ESA), you are entitled to a bare minimum amount of notice or pay in lieu of notice. However, unless you signed a highly specific and legally enforceable employment contract, you are also entitled to “common law” reasonable notice. Common law notice is almost always significantly higher than the ESA minimum. It is calculated based on your age, your length of service, the character of your employment, and the availability of similar jobs in the market. A senior manager who has been with a company for 15 years may be entitled to up to 24 months of severance pay.

Employers routinely offer only the ESA minimums and pressure employees to sign a release. Never sign a severance offer without having it reviewed by an employment lawyer.

Constructive dismissal

You don’t have to be formally fired to lose your job. If your employer makes a fundamental, unilateral change to the terms of your employment, the law may treat it as a termination. This is known as constructive dismissal.

Common triggers for constructive dismissal include a significant reduction in your salary or benefits, a demotion or a major change in your duties and responsibilities, a forced relocation to a different city, a toxic work environment involving harassment or discrimination, or an unjustified temporary layoff.

If you have been constructively dismissed, you have the right to resign and claim full severance pay, just as if you had been formally terminated. However, the legal threshold for proving constructive dismissal is high. You must seek legal advice before you resign, as quitting prematurely can destroy your claim.

Terminations “for cause”

A termination “for cause” (or just cause) is the capital punishment of employment law. If an employer successfully proves just cause, they can fire you immediately without paying a single cent of severance or notice.

Because the consequences are so severe, Ontario courts have set an exceptionally high bar for proving just cause. Minor misconduct, performance issues, or isolated mistakes are almost never enough. An employer must prove serious, willful misconduct—such as theft, fraud, severe insubordination, or a complete breakdown of the employment relationship.

Many employers will allege “cause” simply to intimidate an employee into walking away without severance. If you have been fired for cause, we can aggressively challenge the employer’s allegations and fight to have the termination re-characterized so you receive your full entitlements.

Human rights and discrimination

If your termination—or your treatment at work—was connected to a protected ground under the Ontario Human Rights Code, you may be entitled to additional damages beyond your standard severance package.

Protected grounds include race, ancestry, place of origin, colour, ethnic origin, citizenship, creed, sex, sexual orientation, gender identity, gender expression, age, record of offences, marital status, family status, or disability.

If you were fired after requesting a medical leave, or if you were targeted due to your age or gender, we can pursue human rights damages alongside your wrongful dismissal claim.

Speak with an employment lawyer in Hamilton or St. Catharines

Cook Reynolds LLP represents employees across Hamilton, Burlington, St. Catharines, Niagara, Brantford, and the surrounding Golden Horseshoe region. Our initial consultation is free and confidential.

For more detail on what to bring to your first meeting with us, read The Initial Lawyer Consultation: What to Bring With You.