Termination Packages and
Wrongful Dismissal Litigation
CONTACT USLetting an employee go is one of the most legally sensitive decisions a business owner makes. Do it wrong and a routine termination becomes an expensive wrongful dismissal claim.
In Ontario, employers have the right to terminate employees — with or without cause. But that right comes with legal obligations.
A lawful termination generally has the following components:
- Follows the requirements of the Employment Standards Act;
- Provides proper notice or pay in lieu of notice;
- Is carried out respectfully and without bad faith conduct;
- Is documented correctly from start to finish.
Two Types Of Termination
Termination Without Cause
You don’t need a reason to let an employee go in Ontario. But you do need to provide reasonable notice or pay in lieu of that notice. The amount depends on the employee’s length of service, age, seniority, and what their contract says. Underestimating this exposure is one of the most common and costly mistakes employers make.
Termination With Cause
Just cause is a high legal bar in Ontario. It is not poor performance, a bad attitude, or a single mistake.
True just cause requires serious misconduct that goes to the root of the employment relationship. Claiming cause without meeting that threshold almost guarantees a wrongful dismissal claim.
How We Help
Step 1 — We assess your situation. We review the employee’s contract, their history, the reason for termination, and your overall exposure. We tell you honestly what terminating this employee will cost and how to minimize that cost.
Step 2 — We advise on cause or no cause. If you believe the employee’s conduct justifies termination for cause, we tell you whether the facts actually support that position.
Step 3 — We prepare the termination package. We draft the termination letter, calculate the correct notice or severance entitlement, and prepare a release that properly protects your business from future claims.
Step 4 — We guide you through the meeting. What you say — and what you don’t say — in a termination meeting matters. We prepare you for that conversation so it is handled professionally and without creating new legal liability.
Step 5 — We handle what comes next. If the employee pushes back, retains a lawyer, or makes a claim, we are ready to respond.
Frequently Asked Questions
- How much notice does an employee have to receive?It depends on their length of service, age, position, and what their employment contract says. Ontario's Employment Standards Act sets minimum floors — but common law entitlement is often significantly higher. We calculate the full exposure before you make a move.
- What should we include in a termination letter?The termination letter is a key document — not just an HR formality. What it says, how it says it, and what it offers can all affect your legal exposure. We draft it correctly so it doesn't come back to haunt you.
- What is a release and do we need one?A release is a legal document the employee signs in exchange for enhanced severance — agreeing not to sue you. It is one of the most important tools for protecting your business after a termination.
Contact Pinto Shekib LLP, Your Toronto Employment Lawyers
Call 416.901.9984 or email info@pintoshekib.ca for a confidential consultation.