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Termination of Employment in Canada

Ensure your termination of employment practices meet Canadian legal standards with expert guidance from HR Enable Inc.

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Termination of Employment in Canada

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  1. Termination of Employment in Canada

  2. A termination of employment can occur for various reasons, such as workforce reductions (layoffs), poor performance, misconduct, voluntary resignation, or the natural end of a fixed-term contract when the employer decides not to renew it.

  3. Types of Termination • l Without Cause: Employer ends employment without alleging misconduct • l With Cause: Serious misconduct by employee (e.g., theft, insubordination) • l Constructive Dismissal: Fundamental change to job/conditions forces resignation

  4. Constructive Dismissal in Ontario Constructive dismissal occurs when an employer unilaterally imposes significant changes to the fundamental terms of an employment contract, leading the employee to resign. Although the employee formally resigns, the law may treat it as a dismissal, allowing the employee to file a claim for constructive dismissal. HR Enable has experience in terminations and dismissals. Our team can drastically reduce any risks to you and your company when conducting an employee termination. We also provide on-site services for clients relating to this matter. Give us a call to learn more.

  5. What is Wrongful Dismissal? A wrongful dismissal in Ontario occurs when an employee is terminated without cause, fired, or laid off without being given sufficient reasonable notice or pay in lieu of notice—commonly known as termination pay or severance pay.

  6. An employer terminates an employee without cause and fails to provide the employee with sufficient reasonable notice. • An employer terminates an employee for just cause without evidence the employee’s conduct or behaviour was so serious in nature or extent, that it breached the employment agreement. For more information visit our blog - Differences Between ‘With Cause’ and ‘Without Cause’ Termination in Ontario, Canada

  7. Wrongful dismissal is often misunderstood—it doesn't automatically mean the dismissal was illegal. In Ontario, both employers and employees can end the employment relationship without cause, provided the employee receives reasonable notice or pay in lieu. When an employee believes this didn’t happen, they may pursue a wrongful dismissal action, typically seeking financial compensation through litigation.

  8. Conclusion Termination of employment is a serious matter that must be handled fairly, ethically, and in accordance with the law. Employers should ensure compliance with legal standards and best practices to avoid potential disputes. Employees who believe they have been treated unfairly should not hesitate to consult HR or seek guidance from a Wrongful Dismissal Lawyer to understand their rights and options.

  9. 905-483-5115 • samina.sial@hrenable.ca • hrenable.ca • 1300 Cornwall Road, Suite 201, Oakville, Ontario, L6J 7W5

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