What Is A Wrongful Dismissal in Ontario?

Wrongful dismissal occurs when your employer terminates you without cause and fails to provide adequate notice or compensation. In Ontario, employers can fire you without cause as long as they give you proper notice or pay instead. If they don’t provide enough notice or pay, that’s a wrongful dismissal.

Here’s what most people don’t realize: you’ve likely been wrongfully dismissed if your employer gave you only the minimum required by the Employment Standards Act (ESA). While ESA minimums are legal, most employees are entitled to much more under common law—often several months of additional compensation based on factors like your age, length of service, and position.

Understanding the difference between types of termination is crucial.

Termination without cause: Your employer ends your employment but hasn’t accused you of serious misconduct. This is often legal as long as they provide proper notice or pay in lieu. Most terminations fall into this category.

Termination for just cause: Your employer claims you committed serious misconduct— such as theft, violence, fraud, or willful neglect—and fires you without any notice or severance. Just cause is extremely difficult for employers to prove and held to a high legal standard.

Wrongful dismissal: Your employer terminates you without cause but provides insufficient notice or compensation, or they claim just cause when it doesn’t actually exist.

If your employer alleges just cause but can’t prove it, that’s wrongful dismissal and you’re entitled to full compensation as if you were terminated without cause.

When wrongfully dismissed, you’re entitled to compensation representing the notice period you should have received.

ESA minimums: The Employment Standards Act requires minimum notice based on length of service, ranging from 1-8 weeks.

In addition, there is severance pay if you worked 5+ years and your employer has a $2.5 million+ payroll.

Common law reasonable notice: Most employees without enforceable termination clauses in their contracts are entitled to reasonable notice under common law, which considers:

• Age: Older workers typically get more notice
• Length of service: Longer tenure means more notice
• Position: Senior roles receive longer notice periods
• Availability of comparable work: Specialized positions warrant more notice

Common law notice can range from 2-3 months for short-term junior employees to 18-26 months for long-tenured senior employees. A typical middle-management employee with 10 years of service might be entitled to 10-15 months.

Additional damages: In cases of bad faith termination—false accusations, humiliation, or other unfair treatment—you may be entitled to aggravated or punitive damages beyond notice compensation.

Your severance package is suspiciously low: If your employer offers only ESA minimums or a few weeks of pay after years of service, it’s likely inadequate.

They claim just cause but it’s questionable: Employers often stretch the definition of “just cause” to avoid paying severance. If you’re accused of minor performance issues or single incidents that weren’t serious, just cause likely doesn’t exist.

Your employment contract has problems: Many termination clauses in employment contracts are unenforceable because they violate the ESA or are poorly drafted. An invalid termination clause means you’re entitled to full common law notice.

They pressure you to sign quickly: Employers who demand you sign releases immediately without time to review are often trying to prevent you from discovering you deserve more.

The manner of dismissal was harsh: If you were escorted out, falsely accused of misconduct, or humiliated in front of colleagues, the termination might have been in bad faith.

If you believe you’ve been wrongfully dismissed, here’s how to pursue your claim.

Step 1: Don’t sign anything

Your employer will likely present a severance package and release. Don’t sign it—even if they claim it’s the “standard” or “final” offer. Once you sign a release, you waive your right to sue for more. Take the documents home and review them carefully with a lawyer.

Step 2: Gather your documents

Collect everything related to your employment:

• Employment contract and any amendments
• Offer letter
• Job description and performance reviews
• Termination letter and severance offer
• Pay stubs, T4s, and benefit information
• Emails or documents about your termination

Step 3: Consult an employment lawyer

They’ll review your situation and tell you what you’re truly entitled to. Timing matters—the sooner you get advice, the better.

Step 4: Negotiate or Litigate 

Your lawyer will send your employer a detailed letter explaining why the severance offer is inadequate and demanding proper compensation under common law. This letter includes a legal analysis of your entitlements and sets a deadline for response.

If negotiations fail, your lawyer files a Statement of Claim in court. This officially starts the wrongful dismissal lawsuit. The case proceeds through:

• Pleadings (exchange of formal legal documents)
• Discovery (document disclosure and examinations under oath)
• Mediation & Pre-trial conferences
• Trial (if settlement doesn’t occur)

Most cases still settle even after a lawsuit is filed, often at mediation or pre-trial conferences.

Settlement without lawsuit: 2-6 months from your lawyer sending the initial demand letter.

Settlement after filing lawsuit: 6-12 months on average, as cases move through court procedures and settlement discussions.

Trial: 2-3 years or more from termination to trial date, though most cases settle before reaching this stage.

The length depends on how reasonable your employer is, the complexity of your case, and court scheduling. Cases involving clear wrongful dismissal with strong evidence settle faster.

If your employer terminated you “for cause” and gave you nothing, you can still challenge it. Just cause requires proof of serious misconduct that fundamentally breaches the employment relationship. Minor performance issues, single incidents, or conduct that wasn’t clearly communicated as unacceptable typically don’t meet this high standard.

Challenge wrongful cause allegations by:

• Documenting your work history and performance reviews
• Showing the misconduct wasn’t serious enough
• Proving you weren’t given warnings or chances to improve
• Demonstrating inconsistent application of policies

If you successfully disprove just cause, you’re entitled to full notice compensation as if you were terminated without cause. 

Contact the Toronto employment lawyers at Pinto Shekib LLP to discuss your case – 416.901.9984 or info@pintoshekib.ca.