Wrongful Dismissal in Ontario — You May Be Owed More
Ontario common law notice entitlements often far exceed ESA minimums. Most wrongful dismissal cases settle without going to court.
What Is Wrongful Dismissal in Ontario?
In Ontario, wrongful dismissal does not necessarily mean your employer had no right to let you go — it means they failed to provide adequate notice or pay in lieu of notice. The Employment Standards Act (ESA) sets minimum notice periods based on length of service, but these are a floor, not a ceiling. Under common law, most employees are entitled to significantly more — often described as "reasonable notice," which courts determine based on factors such as your age, length of service, the character of your position, and the availability of similar employment in the market. For a long-tenured senior employee, common law notice can amount to 18–24 months of pay. Your employer cannot contract out of this entitlement with a poorly drafted termination clause — many such clauses are found unenforceable by Ontario courts because they fail to meet ESA minimums or are ambiguous.
ESA vs. Common Law: The Critical Difference
The ESA provides a statutory minimum: one week per year of service, up to a maximum of eight weeks. It also requires "severance pay" (distinct from termination pay) for employees with 5+ years of service working for employers with a payroll of $2.5 million or more — capped at 26 weeks. These amounts sound substantial, but they are the bare minimum the law requires. Under common law, Ontario courts use the Bardal factors (established in Bardal v. Globe & Mail, 1960, and confirmed repeatedly since) to calculate reasonable notice. A 45-year-old manager with 10 years of service in a specialized role could reasonably expect 12–18 months of common law notice — versus just 8 weeks under the ESA. Your employer may offer you the ESA minimum and ask you to sign a release. You are not required to accept that offer, and doing so forfeits any claim to common law notice.
Steps to Take After Being Terminated
If you have been dismissed or laid off, the steps you take in the first days are important. First, do not sign any release or severance agreement under pressure — you typically have a reasonable period to review documents. Second, gather relevant materials: your employment contract (if you have one), any written notices of termination, records of your salary and benefits, and performance reviews. Third, note the date of your last day of work, as the 2-year limitation period under Ontario's Limitations Act, 2002 generally begins from that date. Fourth, obtain a general assessment of your situation before responding to your employer's offer. Our Licensed Paralegal (Law Society of Ontario) provides free initial assessments — you will leave knowing whether your package is fair, what common law may entitle you to, and what your realistic options are. For cases assessed at above $50,000, we assess your entitlements and connect you with the appropriate professional.
- Does the termination clause in my contract limit my common law rights?
- Am I receiving more than ESA minimum notice?
- Does the offer account for my age, tenure, and position?
- Have I been offered continuation of benefits during the notice period?
- Is there a non-disparagement clause I should review?
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