“I was Fired Without Cause – What Are My Rights?”

Losing your job can be a shock. It can feel even worse if you’re fired without any clear reason. In Ontario, while employers can legally terminate employees without cause, there are rules in place to protect you. Understanding those protections, knowing what you’re entitled to, and exploring your options can help ease the burden of an unexpected dismissal.

Let’s break down what it means to be terminated without cause, what your rights are, and how seeking legal advice from employment termination lawyers can help you understand your options and move forward.

In Ontario, being fired “without cause” means you’re let go for reasons that don’t involve serious misconduct. This could be due to things like business restructuring, an economic downturn, or simply not being a good fit for the company’s future plans. Importantly, it’s not a reflection on your abilities or performance.

While it might seem arbitrary, your employer has the legal right to end the employment relationship without cause, provided they follow the proper procedures for doing so.

When an employer terminates you without cause, they’re required to give you either notice or termination pay in lieu of notice. The amount you’re entitled to depends on both the Employment Standards Act (ESA) and common law, with the ESA providing the minimum entitlements, and common law offering more extensive compensation based on the individual factors surrounding the employee termination.

Your employer must provide what’s called working notice (the period you’re expected to continue working before your termination date) or pay in lieu of notice (compensation for the notice period). Under the ESA, you’re guaranteed one week of notice per year of service, up to a maximum of eight weeks.

However, many employees are entitled to reasonable notice under common law, which is typically much more generous. This can range from several months up to two years’ worth of notice or pay, depending on factors like your age, position, length of service, and how long it might take you to find comparable employment. In other words, if you’ve been with the company for a long time or held a senior role, your severance pay could be significant.

In addition to notice, many employees are eligible for statutory severance pay under the ESA. This kicks in if you’ve been employed for five or more years and your employer has a payroll of $2.5 million or more, or if 50 or more employees are terminated within six months. Statutory severance is calculated at one week per year of service, up to 26 weeks.

Common law severance often provides much more. It considers not just your length of service, but also factors like your role, salary, and how difficult it will be for you to find another job. If your employment contract doesn’t limit your severance to ESA minimums—or if it includes a faulty termination clause—you could be entitled to more compensation than your employer initially offers. An experienced employment lawyer can help you assess this.

Terminations without cause aren’t always handled properly. If your employer fails to act in good faith—by, for example, falsely accusing you of poor performance, humiliating you in front of colleagues, or firing you to avoid giving you certain benefits—you may be entitled to more than just severance. You could pursue aggravated damages for emotional distress or even punitive damages if the employer’s behavior was particularly outrageous.

It’s important to note that your employer can’t legally fire you for discriminatory reasons. Ontario’s Human Rights Code protects employees from termination based on factors like race, gender, disability, age, or other protected grounds. If you suspect your firing was related to discrimination, you may have grounds to file a wrongful dismissal claim. Wrongful dismissal claims can lead to additional compensation on top of your severance entitlements.

If you’ve been terminated without cause, your employer might offer you a severance package and ask you to sign it quickly, often setting a tight deadline. Don’t feel pressured to accept the offer right away. You have time. In fact, under Ontario law, you have up to two years to bring a wrongful dismissal claim if you feel you weren’t given your full entitlements.

Don’t Sign Without Legal Advice

It is recommended to consult an employment lawyer before agreeing to any severance offer. Why? Because your employer’s initial offer might not fully reflect what you’re entitled to. Many employment contracts include termination clauses that try to limit severance to the bare minimum allowed by the ESA, but these clauses aren’t always enforceable.

An employment termination lawyer can review your offer and advise you on whether you should negotiate for more. They’ll also help ensure that your severance package reflects everything you’re owed, including pay for any unused vacation, benefits, bonuses, and even pensions.

Can I Sue My Employer?

Yes, if your employer fails to provide proper notice, termination pay, or a complete severance package, you can file a wrongful dismissal claim. This is particularly important if you believe you were terminated in bad faith or that the severance offer was unfair. 

The exact amount of severance pay you’re entitled to varies based on your employment contract and the specifics of your situation. Under the ESA, statutory severance pay is capped at 26 weeks, but under common law, employees can receive up to 24 months of pay, depending on their role, years of service, and age.

Factors like the availability of comparable jobs, the economic climate, and even the job market for your specific skills also come into play. Employers are often quick to offer a low-ball severance figure, hoping you’ll sign before consulting a lawyer. But many employees are entitled to much more, particularly if they held senior roles or have been with the company for a long time.

Being fired without cause is difficult, but you don’t have to face it alone. Knowing your rights is the first step to getting what you deserve. 

Before signing any severance offer, consult an experienced employment lawyer to ensure you’re receiving a proper severance package. At DWA Law, we understand how stressful this time can be and are here to guide you through every step, making sure you get the compensation you’re entitled to.

If you’ve been fired without cause, contact us today for a consultation. We’ll help you understand your options, assess your full entitlements, and stand up for your rights.