Being fired feels wrong. But is it legally wrongful dismissal? This guide explains what the term actually means in Ontario, what you may be entitled to, and what to consider before you sign anything.
The key distinction
The term "wrongful dismissal" is widely used but often misunderstood. In Ontario employment law, it does not simply mean that you were fired unjustly or that you did not deserve to lose your job. It has a more specific legal meaning.
Wrongful dismissal generally refers to a termination where the employer failed to provide adequate notice of termination, or pay in lieu of that notice, as required by law or your employment contract. In other words, the dismissal may have been perfectly within the employer's right, but the way it was carried out did not follow the rules.
Ontario employees have two layers of protection in most cases: the Employment Standards Act, 2000 (ESA) minimum entitlements, and common law rights which can go significantly further.
The ESA sets out the minimum notice, or termination pay in lieu, that most Ontario employees are entitled to when they are dismissed without cause:
These are minimums. Your actual entitlement at common law is often substantially higher, particularly for longer-tenured, more senior, or older employees.
Beyond the ESA, courts in Ontario have recognized that most employees are entitled to "reasonable notice" at common law when they are dismissed without cause. What is "reasonable" depends on several factors, often called the Bardal factors:
Common law notice periods can be considerably higher than the ESA minimums, sometimes months of pay per year of service for senior employees. This is why reviewing a severance offer before signing is so important.
Employers sometimes terminate employees and claim "just cause" (meaning they are asserting the employee's conduct was serious enough to justify immediate dismissal without any notice or severance.
Just cause is a genuinely high legal standard. Courts have consistently held that misconduct must be serious, and the employer must have responded proportionately. Common performance issues, mistakes, or disagreements rarely meet the legal threshold for just cause, even if the employer sincerely believes they do.
Do not sign a release without understanding your entitlements
Constructive dismissal is a related concept that applies when an employer does not formally fire you, but makes fundamental changes to your employment, or creates a work environment so intolerable, that a reasonable person would feel they had no choice but to resign.
Examples of constructive dismissal may include:
If you resigned under circumstances like these, you may still have a wrongful dismissal claim. Getting legal advice before you resign, if that is still possible, is advisable.
You should consider reaching out to a licensed paralegal or employment representative if:
The employment team at GotACase can review your situation, explain your entitlements under both the ESA and common law, and advise on whether and how to proceed.
Tell us what happened. A licensed paralegal will review your situation and explain what your options might be.
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This guide is for general information only. It is not legal advice. Every situation is different, if you need guidance specific to your circumstances, please reach out directly.
GotACase.ca, Legal Guides for Ontario Residents
