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Wrongful Dismissal

Is a Verbal Agreement Legally Binding in Ontario?

Is a Verbal Agreement Legally Binding in Ontario?

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Many people assume a contract must be written to be legally valid—but that’s not always the case. In Ontario, verbal agreements can be legally binding, though they often come with challenges when it comes to enforcement.

What Makes a Contract Legally Binding?

A valid contract—whether written or spoken—requires three key elements:

  1. Offer and acceptance – One party offers something, and the other accepts.

  2. Consideration – There must be something of value exchanged (money, services, goods, etc.).

  3. Mutual intent – Both parties must intend to enter a binding agreement.

If these conditions are met, even a handshake deal could technically be enforceable in court.

When Verbal Agreements Are Enforceable

Verbal contracts are commonly seen in areas like:

  • Home repairs

  • Personal loans

  • Informal employment arrangements

  • Sales of goods under a certain value

For example, if you verbally agree to pay a neighbour $500 to build a fence, and they complete the work, that agreement may hold up in court—but only if you can prove it existed.

When a Written Contract Is Required

Ontario law requires certain types of contracts to be in writing, including:

  • Real estate transactions

  • Wills and powers of attorney

  • Certain long-term leases (over one year)

  • Guarantees (e.g., cosigning a loan)

In these cases, a verbal agreement isn’t enough—it won’t be enforceable under the law.

The Problem with Verbal Contracts: Proving Them

The biggest challenge is evidence. Without documentation, it becomes a “he said, she said” situation. Courts may rely on:

  • Witness testimony

  • Emails, texts, or voicemails

  • Behaviour consistent with a contract (e.g., partial payment)

Still, proving the terms—like how much was agreed upon and when—is much harder without a written record.

Protect Yourself: Tips for Verbal Agreements

If you’re entering a verbal agreement:

  • Follow up with a confirming email or text.

  • Involve witnesses if possible.

  • Keep records of any related payments or messages.

Better yet: get it in writing whenever you can. Even a simple document can prevent costly disputes later.

Final Thoughts

While Ontario law does allow verbal agreements, enforcing them can be complicated without proof. If you’re involved in a contract dispute—or unsure whether your agreement is legally binding—it’s best to speak with a lawyer.

Contact Hilborn and Konduros for legal advice tailored to your situation. We’ll help you understand your options and protect your interests.

Employment Lawyer Cambridge Ontario

Employment Contracts – Key Clauses and Their Legal Significance

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Employment contracts are the foundation of the employer-employee relationship, outlining the terms and expectations of employment. In Ontario, a well-drafted contract not only protects employers but also helps employees understand their rights and responsibilities.

Some of the most important clauses to look for include:

1. Termination Clause – This sets out the notice or severance an employee is entitled to upon termination. Without a clear and enforceable clause, Ontario’s Employment Standards Act (ESA) minimums apply, and employees may also be entitled to common law notice, which is typically more generous.

2. Duties and Responsibilities – Clear job descriptions help prevent disputes about expectations and performance.

3. Non-Competition and Non-Solicitation Clauses – These restrict an employee’s ability to work for competitors or solicit clients or colleagues after leaving the company. In Ontario, non-compete clauses are generally unenforceable except in very limited circumstances.

4. Confidentiality Clauses – These protect the employer’s sensitive business information and often remain in effect after the employment relationship ends.

5. Compensation and Benefits – Clarity around wages, bonuses, commissions, and benefits helps avoid confusion or claims of unpaid entitlements.

A common mistake is to assume that all employment contracts are enforceable as written. Courts in Ontario will scrutinize contract language carefully, especially termination clauses, to ensure they comply with the ESA. If a clause breaches the Act, the entire termination clause may be invalid.

Employees should be encouraged to seek legal advice before signing, especially when starting new roles or when presented with new contract terms during employment. Employers should likewise consult an employment lawyer to ensure their contracts are legally sound and up to date with the latest legal standards.

Ultimately, a clear, fair, and enforceable employment contract protects both parties and reduces the risk of costly disputes down the line. For contract review and legal support, contact Hilborn and Konduros in Cambridge, Ontario.

The Rights of Employees During Company Restructuring or Downsizing

The Rights of Employees During Company Restructuring or Downsizing

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When a company undergoes restructuring or downsizing, it often results in layoffs, reduced hours, or major shifts in roles. For employees in Ontario, it’s important to understand your rights during these transitions to ensure fair treatment and compensation.

Under Ontario’s Employment Standards Act (ESA), employers must provide proper notice or pay in lieu of notice if an employee is terminated without cause. The amount of notice depends on the length of employment. In addition to ESA minimums, employees may also be entitled to common law notice, which is often significantly higher.

If a group of employees is laid off (typically 50 or more within a 4-week period), the employer must also follow rules related to mass termination, including giving notice to the Ministry of Labour and affected employees.

Employees may be offered severance packages. It’s important to review these carefully and consider whether they meet legal minimums and your personal entitlements. You are not required to sign a severance offer immediately, and you have the right to seek legal advice before accepting.

If restructuring results in a substantial change to your job duties, location, or compensation, it may be considered a constructive dismissal — a situation where you are effectively forced to resign due to significant negative changes to your employment terms.

If your employment has been affected by restructuring or layoffs, contact Hilborn and Konduros in Cambridge, Ontario for expert guidance.

Navigating Constructive Dismissal – When Should You Take Legal Action?

Navigating Constructive Dismissal – When Should You Take Legal Action?

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Constructive dismissal occurs when an employer makes significant changes to an employee’s job that fundamentally alter the nature of their employment — without the employee’s consent. In Ontario, this is legally treated as a termination, even if the employee has not been formally fired.

Examples include drastic changes in job duties, demotion, significant pay cuts, forced relocation, or a toxic workplace environment. If you experience such changes, you may have grounds to resign and pursue a claim for wrongful dismissal.

Proving constructive dismissal requires showing that the employer breached the employment contract or the terms of your working relationship. This can be challenging, so it’s important to document changes in writing, keep records of any correspondence, and consult legal counsel before resigning.

If the court agrees that constructive dismissal has occurred, you may be entitled to damages, including notice pay, severance, and sometimes additional compensation depending on the circumstances.

Don’t make assumptions — what feels unfair might not qualify legally as constructive dismissal, and acting too soon can harm your case. Always seek legal advice first.

If you believe your employer has significantly changed your job without cause, contact Hilborn and Konduros in Cambridge, Ontario.

Key Factors to Consider in Wrongful Dismissal Cases: A Guide for Canadian Employees

Key Factors to Consider in Wrongful Dismissal Cases: A Guide for Canadian Employees

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Losing your job can be a challenging and distressing experience, particularly if you believe your termination was unjust. In Canada, employees have legal rights and protections against wrongful dismissal. Understanding the key factors that contribute to wrongful dismissal cases is essential for Canadian employees who want to assert their rights and seek recourse. In this blog post, we will explore the key factors to consider in wrongful dismissal cases, providing a guide to help you navigate the legal landscape and protect your employment rights in Canada.

1. Employment Contracts and Termination Clauses:

The terms and conditions outlined in your employment contract play a crucial role in determining the validity of your dismissal. Assessing the presence and enforceability of termination clauses is essential. In Canada, these clauses must comply with minimum employment standards legislation and provide reasonable notice or severance pay in the event of termination. Consulting an employment lawyer can help you determine if the termination clause in your contract is legally binding.

2. Reasonable Notice Period:

When determining wrongful dismissal, the concept of reasonable notice is vital. Reasonable notice refers to the amount of advance notice or severance pay an employer must provide an employee when terminating their employment without cause. Factors such as the length of employment, position, age, and the availability of similar employment opportunities are considered when calculating the reasonable notice period. If you believe you were not given adequate notice or severance, consulting an employment lawyer is crucial to assess the fairness of your termination.

3. Constructive Dismissal:

Constructive dismissal occurs when an employer unilaterally changes a fundamental term of your employment, making it untenable for you to continue working. Examples include significant pay cuts, demotions, or changes in job responsibilities without your consent. To establish constructive dismissal, you must demonstrate that the changes were substantial and negatively impacted your employment. Consulting an employment lawyer can help determine if your circumstances meet the criteria for constructive dismissal.

4. Discrimination and Harassment:

If your dismissal was based on discriminatory factors such as your race, gender, age, religion, disability, or any other protected ground, it may be considered wrongful dismissal. Similarly, if you experienced harassment in the workplace and were subsequently terminated for reporting it, you may have grounds for a wrongful dismissal claim. It is crucial to document instances of discrimination or harassment and consult an employment lawyer to assess the viability of your case.

5. Mitigation of Damages:

In wrongful dismissal cases, employees have a duty to mitigate their damages by actively seeking new employment. If you are wrongfully dismissed, you must make reasonable efforts to find comparable employment to minimize the financial losses resulting from your termination. Documenting your job search activities and keeping records of applications and interviews is essential to demonstrate your efforts to mitigate damages.

6. Seeking Legal Advice:

Navigating wrongful dismissal cases can be complex and emotionally challenging. Seeking legal advice from an experienced employment lawyer specializing in wrongful dismissal is highly recommended. We can assess the specific circumstances of your case, help you understand your rights, negotiate with your employer, and guide you through the legal process, ensuring that you receive fair compensation for your wrongful termination.

Wrongful dismissal cases require careful consideration of various factors to protect your rights as a Canadian employee. Understanding the terms of your employment contract, assessing the reasonableness of the notice period, recognizing constructive dismissal, addressing discrimination or harassment, actively mitigating damages, and seeking legal advice are key steps to navigate the legal landscape effectively. If you believe you have been wrongfully dismissed, our team can provide the guidance and advocacy you need to assert your rights and seek appropriate recourse. Give our experienced employment lawyers a call today.

Termination of employment in Ontario: Employee rights, notice periods, and severance pay

Termination of employment in Ontario: Employee rights, notice periods, and severance pay

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Termination of employment is an inevitable part of the employment relationship. In Ontario, the law provides certain protections for employees who are terminated from their employment. As an employee, it is important to understand your rights, notice periods, and severance pay in the event of a termination.

In Ontario, the Employment Standards Act (ESA) sets out the minimum standards for termination of employment. Generally, an employer can terminate an employee’s employment for any reason, as long as the termination is not discriminatory or contrary to public policy. However, an employer must provide an employee with notice of termination or pay in lieu of notice.

Notice periods are based on the length of an employee’s service with the employer. For employees who have been employed for less than three months, no notice is required. For employees who have been employed for three months or more but less than one year, the minimum notice period is one week. For employees who have been employed for one year or more but less than three years, the minimum notice period is two weeks. For employees who have been employed for three years or more, the minimum notice period is three weeks plus one week for each additional year of service, up to a maximum of eight weeks.

In some cases, an employer may choose to provide pay in lieu of notice instead of providing notice. Pay in lieu of notice is an amount of money equal to the employee’s regular pay for the notice period. This option may be chosen when the employer wants the employee to leave immediately, or when the employee is not willing or able to work during the notice period.

In addition to notice or pay in lieu of notice, an employee who is terminated may be entitled to severance pay. Severance pay is a lump sum payment that is separate from notice or pay in lieu of notice. To be eligible for severance pay, an employee must have been employed for at least five years and have worked for an employer with a payroll of at least $2.5 million. The amount of severance pay is based on the employee’s length of service and salary.

It is important to note that the above information is only the minimum requirements under the ESA. Employees may be entitled to additional notice, pay in lieu of notice, or severance pay under their employment contract or collective agreement. Employees should review their contract or agreement to determine their entitlements.

In conclusion, termination of employment can be a difficult and stressful experience. However, employees in Ontario are protected by the ESA and are entitled to notice, pay in lieu of notice, and severance pay in the event of a termination. It is important to understand your rights and entitlements as an employee, and to seek legal advice if you have any questions or concerns about a termination. 

Our team can help you if you think you have been wrongfully terminated, call us today.

Understanding Your Rights as an Employee in Ontario: A Guide to Employment Lawsuits and Employee Rights

Understanding Your Rights as an Employee in Ontario: A Guide to Employment Lawsuits and Employee Rights

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As an employee in Ontario, Canada, you have certain rights that are protected by law. These rights include the right to be free from discrimination and harassment, the right to a safe and healthy work environment, and the right to fair pay and benefits. If your employer has violated your rights or mistreated you in the workplace, you may be able to file an employment lawsuit to seek compensation.

Here are some key things to know about employment lawsuits and employee rights in Ontario:

  1. The Ontario Human Rights Code: The Ontario Human Rights Code is a provincial law that prohibits discrimination and harassment based on grounds such as race, age, gender, sexual orientation, and disability. If you have experienced discrimination or harassment in the workplace, you may be able to file a complaint with the Human Rights Tribunal of Ontario.

  2. Health and safety rights: Under Ontario law, employers are required to provide a safe and healthy work environment for their employees. If you have been injured on the job or exposed to hazardous conditions, you may be entitled to workers’ compensation benefits and may also be able to file a lawsuit against your employer for failing to protect your safety.

  3. Fair pay and benefits: Employees in Ontario are entitled to receive fair pay and benefits, including minimum wage, vacation pay, and overtime pay. If your employer has not paid you the wages or benefits you are owed, you may be able to file a complaint with the Ministry of Labour or file a lawsuit to seek compensation.

  4. Wrongful dismissal: If you have been terminated from your job without just cause, you may be able to file a lawsuit for wrongful dismissal. In Ontario, an employer is required to provide reasonable notice or pay in lieu of notice before terminating an employee, unless the employee has been terminated for just cause.

  5. Whistleblower protection: If you have reported misconduct or wrongdoing in the workplace and have been retaliated against as a result, you may be protected under Ontario’s whistleblower protection laws. You may be able to file a complaint with the Ontario Ministry of Labour or file a lawsuit against your employer for retaliation.

If you have experienced mistreatment or discrimination in the workplace, it is important to seek legal advice to understand your rights and options. We specialize in employment law and can help you navigate the legal process and protect your rights as an employee. Don’t let your employer get away with violating your rights – stand up for yourself and seek the compensation you deserve.

What is the employment standards act?

What is the Employment Standards Act?

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In Ontario, the Employment Standards Act sets down the minimum standards for basic conditions of employment. Topics covered under the act include the minimum wage, public holidays, termination rights, pregnancy leave, parental leave, family caregiver leave, vacation time, limits on working hours, and more. 

Does the Employment Standards Act (ESA) Cover All Workers?

While the act does cover the majority of workers in Ontario, it does not apply to workers in federally regulated positions. Examples include workers in banking, airlines, federal civil service, and post offices. 

Covered workers have their employment rights protected under the act and can file a legal claim if they believe those rights have been violated. 

Examples of ESA Violations

Here are a few common ways in which employers violate the ESA: 

  1. Failing to pay the correct wage. This could occur for failing to provide the correct hourly wage, holiday pay, overtime pay, or even vacation pay. 
  2. Limit on hours of work exceeded. Under the ESA, an employer can only require that an employee work a maximum of 8 hours a day or the number of hours in an established workday. Otherwise, a written agreement must take place between the employer and the employee detailing the expected extra hours. This agreement does not mean that the employer is no longer required to pay overtime hours. 
  3. Penalizing an employee for taking an entitled leave of absence. 
  4. Failing to provide wage statements and other employment records. 

When the ESA is violated, the employee has the right to file a claim. 

Filing ESA Claims

There are time limits when it comes to ESA claims. Generally speaking, a claim must be filed within two years of the alleged violation. 

Once filed, an ESA agent will begin an investigation. First, they may encourage the employer to resolve the issue. If this doesn’t occur, then the agent can order the employer to:

  • Pay wages owed;
  • Give the employee their job back;
  • Provide compensation. 

Depending on the circumstances, the employer may be fined or even receive jail time. 

Hire an Ontario Employment Lawyer Today

If you suspect that you have suffered from an ESA violation, our experienced employment attorneys can help. Contact us for a no-cost consultation or call us at (519) 658-6341.

Understanding Your Rights in the Event of Wrongful Dismissal in Ontario: A Guide to Wrongful Dismissal Lawsuits

Understanding Your Rights in the Event of Wrongful Dismissal in Ontario: A Guide to Wrongful Dismissal Lawsuits

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If you have been terminated from your job in Ontario, Canada, you may be wondering if you have grounds to file a wrongful dismissal lawsuit. In Ontario, an employer is generally required to provide reasonable notice or pay in lieu of notice before terminating an employee, unless the employee has been terminated for just cause. If you believe that you were terminated without just cause or without reasonable notice, you may be able to file a wrongful dismissal lawsuit to seek compensation.

Here are some key things to know about wrongful dismissal lawsuits in Ontario:

  1. The requirement for reasonable notice or pay in lieu of notice: In Ontario, an employer is required to provide reasonable notice or pay in lieu of notice before terminating an employee, unless the employee has been terminated for just cause. The amount of notice or pay in lieu of notice that an employer is required to provide depends on a number of factors, including the employee’s length of service, age, and position.

  2. Just cause for termination: An employer may be able to terminate an employee for just cause, which means that the employee has engaged in serious misconduct or has otherwise breached their employment contract. Examples of just cause for termination include theft, fraud, or repeated instances of insubordination. If you have been terminated for just cause, you are not entitled to receive notice or pay in lieu of notice.

  3. Filing a wrongful dismissal lawsuit: If you believe that you have been wrongfully dismissed from your job, you may be able to file a lawsuit to seek compensation. To succeed in a wrongful dismissal lawsuit, you will need to prove that you were terminated without just cause or without reasonable notice. It is important to act quickly, as you generally have only two years from the date of your termination to file a wrongful dismissal lawsuit in Ontario.

  4. The role of an employment lawyer: If you are considering filing a wrongful dismissal lawsuit, it is a good idea to speak with an employment lawyer. A lawyer can help you understand your rights and options, gather evidence, and build a strong case on your behalf. They can also assist you in negotiating a settlement or representing you in court.

If you have been wrongfully dismissed from your job in Ontario, it is important to seek legal advice to understand your rights and options. Don’t let your employer get away with violating your rights – stand up for yourself and seek the compensation you deserve by contacting our team at Hilborn and Konduros right away.

How Do You Prove a Wrongful Dismissal in Ontario?

How Do You Prove a Wrongful Dismissal in Ontario?

Especially during these strange times of COVID-19, some individuals have wondered if they can bring a claim of wrongful dismissal against their employer. The laws temporarily changed during COVID to provide for employers who had to downsize their workforce due to lockdowns, incentivizing them to lay off employees instead of dismissing them. Consequently, some employees are now left confused about their current rights.

The Legal Rights of the Employer to Dismiss Without Reason

While wrongful dismissal is unlawful, there is a matter of proving it under our laws. And proving wrongful dismissal will depend on the terms of your employment. An employer has the right to terminate any person for any reason other than discrimination. While this may seem unfair to the employee, it is the legal right of an employer to make changes to their workforce without having to give a reason for the dismissal. 

Reasonable Notice

But there is one rule that all employers must follow: giving reasonable notice of that dismissal to their employees. In most cases, an employer will choose to pay severance to the employee in lieu of that warning. But in some cases, the employer will choose the option of reasonable notice. Consequently, while employees can bring a wrongful dismissal claim against an employer, most wrongful dismissal cases surround appropriate reasonable notice. So what constitutes “reasonable” notice?

How is “Reasonable” Determined?

Determining what is reasonable, if not provided for under contract, will depend on many variables. The courts will consider the employee’s age, the nature of the employment, the length of employment, and the industry availability for that person to be similarly employed, given their qualifications, experience, and education or training. Consequently, each wrongful dismissal case will be different and unique to the individual and employer. 

To be successful in a wrongful dismissal case, the former employee must be able to prove that they should have received more notice than was offered, considering all of the unique variables. In a successful suit, they may be awarded any money the employer should have provided them in lieu of reasonable notice, plus costs. 

Getting Legal Assistance

If you have been dismissed from your job and are not sure if that dismissal was wrongful in nature, we can help. Contact the wrongful dismissal attorneys at Hilborn and Konduros for a no-cost consultation to discuss a potential claim.