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WRONGFUL DISMISSAL OR TERMINATION WITHOUT NOTICE

When people are terminated from their employment in Ontario, they often assume they’re entitled to nothing more than the one week of pay for every year of service as set out by the Ontario Employment Standards Act. In fact, they may be entitled to significantly more. Courts regularly award “damages in lieu of notice” for wrongful dismissal, determining how much notice an employee should have received and awarding pay for that period.

For example, a person who worked for a company for 12 years might be entitled to a 9-month notice period. The court would calculate how much they would have earned during those 9 months, subtracting any income from new employment during that time. As a general guide, courts may award about one month of pay for every year of service—far more than the one week per year of service guaranteed by the Employment Standards Act.

There’s no strict formula for how much notice a court will award. Factors considered include the employee’s age, position, years of service, and other relevant information. This flexibility allows courts to tailor awards to the specific circumstances of each case.

LAYOFFS

A layoff that lasts too long can be legally considered a termination. In many cases, layoffs aren’t included in the employment contract and can amount to wrongful dismissal, entitling the employee to damages based on their years of service and other relevant factors.

THE DUTY TO MITIGATE

After a dismissal, employees have a legal duty to mitigate their damages by actively looking for new work. To do this, they should:

• Keep a written record of every employer they contact

• Document every résumé they send

• Track job ads and other efforts, like visits to employment agencies, online searches, and networking

This proactive approach helps demonstrate that they’re minimizing their losses.

BONUSES, OVERTIME, AND BENEFITS

When calculating what an employee is entitled to, courts consider the employee’s full income before dismissal, including:

• Regular bonuses and overtime pay

• Health and dental benefits, with reimbursement for out-of-pocket medical expenses during the notice period if they were previously covered

SEVERANCE PACKAGES

Employers often offer severance packages to limit their liability. These packages may include a lump sum or regular payments to compensate the employee for lost income. In times of economic growth, severance offers are usually generous, while they can be more limited during economic downturns.

Employers often require terminated employees to sign a release in exchange for the severance payment. Sometimes these releases include restrictive covenants or non-competition clauses that can limit the employee’s future work opportunities. Such restrictions are typically unreasonable and courts are hesitant to enforce them unless they’re limited in scope and duration.

TERMINATION FOR CAUSE

Employers do not need a reason to terminate an employee—so long as they provide notice or pay in lieu of notice. However, if an employer terminates an employee for cause—meaning serious misconduct such as theft—they’re not required to provide any severance or notice.

Courts closely examine whether the conduct is serious enough to justify termination for cause. They consider the circumstances and how the misconduct impacts the employment relationship.

WHY CHOOSE HILBORN AND KONDUROS LAWYERS?

• Decades of experience advocating for employees across Ontario

• Proven success in wrongful dismissal, severance package negotiations, and termination for cause disputes

• Serving clients in Cambridge, Kitchener-Waterloo, Guelph, and all of Ontario

• No fees until we settle — we’re paid only when you are

• Personalized legal representation and straightforward advice for your unique case

Contact Hilborn and Konduros Lawyers today for a free consultation and learn how we can protect your rights and secure the compensation you deserve.