Learn More About Wrongful Dismissal Law in Ontario

A wrongful dismissal occurs when an employee is dismissed, or terminated, by their employer, WITHOUT just compensation. In General, there are two types of wrongful dismissal claims:

 

• Termination Without Cause: Terminates employment without cause yet refuses to compensate the employee adequately.
• Termination for Cause: Inappropriately dismisses an employee for cause and fails to pay any compensation.

 

Constructive dismissal is a similar yet completely different concept. Constructive Dismissal happens when an employer, by words or conduct, unilaterally makes a fundamental change to a material term or condition of an employment contract. Click here to learn more about Constructive Dismissal..

 

Unjust Dismissal is completely different than Wrongful Dismissal. Unjust Dismissal is ONLY available to federally regulated employees under Division XIV - Unjust Dismissal  of Part III of the Canada Labour Code. Click here to learn more about Unjust Dismissal.

 

In Ontario, you are NOT REQUIRED to show that the termination caused you financial harm or that you were dismissed without notice. Once you've filed your claim, the employer must show that either 1) you were given enough working notice or a payment in lieu of notice; or 2) you were terminated for cause due to wilful misconduct during the employment.

 

What is Severance Pay?

Most companies provide a severance agreement that spells out the financial conditions of the employee's departure. In Ontario, a severance package is mandatory. The common everyday usage of the word severance is very different than what it meant in employment law context. How much "severance pay" you are entitled to legally depends on whether you intend to sue under common law or if you intend to file an ESA claim after you have been terminated.

 

Common Law Severance, also referred to as reasonable notice, share nothing in common to ESA Severance and they mean very different things.

 

The Employment Standards Act  breaks down the amount an employee might receive after termination into ESA termination pay (the amount you get depends on how long you have been working for the company) and ESA severance pay (an amount to award long term service employees if certain conditions are met).

 

The Common Law, on the other hand, does not draw a distinction between termination pay and severance pay, and instead award a monetary amount depends on a number of factors.

 

The amount an employer is required to give to a terminated employee in the form of a severance package is decided by a variety of factors, such as the length of service, age, reason of termination, position held within the company, wages and compensation previously earned, whether the individual was actively recruited, and the general economy.

It is important to note that under common law in a wrongful dismissal case or a constructive dismissal case, all damages are packaged together and referred to as "reasonable notice". Click here to learn more about severance pay law in Ontario.

 

Carefully crafted Employment Contract, Employment Agreement, Independent Contractor Agreement  by experienced employment lawyers to ensure legal enforceability. Seek employment law legal advice before accepting any job offer or any "severance package" or "termination package" is crucial in protecting employment law entitlements. This is especially so if you are in a managerial or senior management position.  Click here to learn more about severance package for short service executive.

 

A poorly drafted employment contract with unenforceable termination clauses expose an employer to serious risk of a claim of wrongful dismissal or an employee being deemed to be a dependant contractor instead of being an independent contractor. Please note that employment law protections are available to gig workers and workers on digital platforms such as Uber drivers. However, employment law protection might not be available to salespersons if the salesperson exemptions applies. Click here to learn more about the salesperson exemptions. 

 

Relevant Articles of Interest:

 

• Disability Discrimination Ultimate Guide
• Constructive Dismissal Ultimate Guide
• Wrongful Dismissal Ultimate Guide
• Severance Pay Ultimate Guide
• Blog Posts on Wrongful Dismissal Issues

 

Our team of dedicated employment  and disability lawyer and support team is committed to providing exceptional legal services tailored to meet your needs. With expertise in various areas of law, we ensure you receive the support and representation you deserve. Click here to meet our team.

 

 

Act Now Before It's Too Late!!

When you require assistance with a wrongful case, HTW Law – Employment Lawyer is ONLY a phone call away. There's no need to search around for a wrongful dismissal lawyer who is ready, willing and able to assist you. When you call, we will be there to help you. Call us now at 647-849-6582 or Contact Us Now if you have any questions or concerns in related to employment contract, termination, wrongful dismissal, constructive dismissal, unjust dismissal,  disability law, sexual harassment, sexual assault, discrimination or severance package or you want to book an appointment for a legal consultation. 

 

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