What Is Wrongful Dismissal in Ontario?
Wrongful dismissal occurs when an employer terminates an employee without providing proper notice or compensation.
In Ontario, employers are allowed to terminate employees without cause, but they must provide either:
- Advance notice, or
- Pay in lieu of notice (aka: severance)
While employment standards legislation sets minimum requirements, many employees are entitled to significantly more under common law.
A wrongful dismissal claim typically arises when the severance offered does not reflect the employee’s full legal entitlement based on factors such as their role, length of service, age, and ability to find new employment.
Not Sure If Your Termination Was Handled Properly?
Before You Accept a Severance Offer…
You should understand that employers often offer less than what employees are legally entitled to.
Speak with a lawyer to understand your rights before you accept.
Call 1-800-771-7882
What to Do If Your Severance Offer Isn’t Fair
If your severance offer feels low, you’re not alone. Many employees in Ontario are offered less than they may be entitled to, especially if they rely only on minimum standards under employment legislation.
Before accepting any offer, consider taking the following steps:
- Do not sign immediately – You may be giving up your right to pursue additional compensation
- Review the full package – Look beyond salary to benefits, bonuses, and other entitlements
- Understand your legal position – Factors like your role, age, and length of service can significantly impact what you are owed
- Seek legal advice – A proper review can help determine whether the offer reflects your full entitlement
Once a severance agreement is signed, it is typically final. Taking the time to assess your options can make a meaningful difference in the outcome.
How Much Is a Wrongful Dismissal Claim Worth in Ontario?
The value of a wrongful dismissal claim in Ontario depends on several key factors, and it is often higher than what employers initially offer.
When determining severance, courts consider factors such as:
- Length of service
- Age
- Position and level of responsibility
- Availability of similar employment
While employment standards legislation sets minimum entitlements, many employees are owed significantly more under common law. In some cases, compensation can range from several months to up to 24 months of pay and benefits, depending on the circumstances.
Because every situation is different, there is no fixed formula. This is why it’s important to assess your specific case before accepting a severance offer.
Not sure what your claim might be worth?
Understanding your potential entitlement can help you decide whether to accept or negotiate your termination offer.
Call 1-800-771-7882
How Does a Wrongful Dismissal Claim Work in Ontario?
Most wrongful dismissal claims in Ontario follow a structured process, but many are resolved without going to court.
The process typically begins with a review of your termination and severance offer. If the compensation is insufficient, a lawyer may send a demand letter to your employer seeking additional compensation.
If the matter is not resolved through negotiation, the next steps may include:
- Filing a formal legal claim
- Exchanging documents and evidence
- Attending mediation or settlement discussions
- Proceeding to trial, if necessary
In many cases, employers are open to resolving disputes early to avoid the time and cost of litigation.
How Long Do You Have to File a Wrongful Dismissal Claim in Ontario?
In Ontario, you generally have two years from the date of your termination to bring a wrongful dismissal claim.
While that may seem like a long time, it’s important to act sooner rather than later. Delays can make it harder to gather evidence, assess your rights, and negotiate effectively.
Taking early steps can help protect your position and improve the likelihood of a fair outcome.
Wrongful Dismissal vs. Wrongful Termination in Ontario
The terms “wrongful dismissal” and “wrongful termination” are often used interchangeably in Ontario.
Both generally refer to situations where an employee is dismissed without receiving proper notice or compensation. While “wrongful dismissal” is the more commonly used legal term, “wrongful termination” is frequently used in everyday language.
Regardless of the wording, the key issue is whether the employee received their full legal entitlements.
Examples of Wrongful Dismissal in Ontario
Wrongful dismissal can arise in many different situations. The key issue is whether the employee received proper notice or compensation at the time of termination.
Common examples include:
- Insufficient termination pay
An employee is terminated without cause but is offered only the minimum entitlements under employment standards legislation, despite being owed more under common law. - No notice or pay in lieu of notice
An employee is dismissed without advance notice and without receiving compensation for that notice period. - Termination based on an unenforceable contract
An employer relies on a termination clause that does not comply with Ontario law, resulting in reduced severance. - Misclassifying a termination as “for cause”
An employer claims cause without sufficient justification, which may eliminate severance improperly.
Each situation depends on the specific facts, and what may seem like a standard termination can still result in a wrongful dismissal claim.
If your situation is similar to any of the above, it may be worth reviewing your severance before accepting it.
Final Thoughts on Wrongful Dismissal in Ontario
Being dismissed from your job can be stressful, especially when you’re unsure whether your severance offer is fair.
In Ontario, many employees are entitled to more than what they are initially offered. Understanding how wrongful dismissal works, and what factors affect your compensation, can help you make informed decisions before accepting any agreement.
Because every situation is different, taking the time to assess your rights can make a meaningful difference in the outcome.
You Could Be Leaving Money On the Table.
Before You Accept Your Severance, Know Where You Stand
If you’ve been wrongfully dismissed or believe your severance offer is too low, getting it reviewed can help you understand your options.
Call 1-800-771-7882
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Frequently Asked Questions About Wrongful Dismissal in Ontario
How long after being dismissed can you claim unfair dismissal?
It’s important to act sooner rather than later. Delays can affect your ability to gather evidence, assess your severance rights, and negotiate a fair outcome.
How do you file a wrongful dismissal claim in Ontario?
If the matter is not resolved, a claim can be filed in court. The process may involve negotiations, mediation, or litigation, depending on the circumstances.
Before taking formal steps, it’s important to understand your rights and options, as many wrongful dismissal cases are resolved without going to court.
What are typical wrongful termination settlements in Ontario?
While minimum entitlements under employment standards legislation may only provide a few weeks of pay, common law severance can be significantly higher; often ranging from several months to up to 24 months of compensation in some cases.
Most wrongful dismissal claims are resolved through settlement rather than going to trial. Because each case is unique, it’s important to assess your specific situation before accepting any offer.
What happens when you sue for wrongful termination?
If a resolution is not reached, the case may proceed through steps such as:
* Filing a formal claim
* Exchanging evidence and documents
* Attending mediation or settlement discussions
* Potentially going to trial
Most wrongful dismissal cases are resolved through settlement before reaching trial. The goal is typically to secure fair compensation based on your employment history and circumstances surrounding your termination.
How long does a wrongful termination case take in Ontario?
Many cases settle quickly, sometimes within weeks or a few months, after negotiations begin. However, if a claim proceeds to court, the process can take significantly longer due to scheduling, mediation, and potential trial timelines.
The timeline often depends on how willing both sides are to reach a resolution early.
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