In Ontario employment law, a wrongful dismissal a legal claim by an employee that their employer terminated their employment without a valid legal reason or justification. As discussed previously on this employment law blog, an employee’s job may cease for various reasons, such as:
- voluntary resignation (by employee)
- frustration of employment (by operation of law)
- termination for cause (by employer)
- termination without cause (by employer)
What does it mean for an employee to argue they were “wrongfully dismissed” from their employment?
Contrary to common belief, a “wrongful dismissal” does not mean the employer was not allowed to terminate the employee’s job, or because the employee perceives the circumstances as “unfair” (e.g., they were the top performer in the company). Rather, a termination of employment (dismissal) is “wrong” if the employer did not have “just cause” to terminate the employment relationship or failed to give the employee prior reasonable notice of termination.
How Can an Employer Legally Terminate an Employee’s Job?
Generally, an employer is not legally required to permanently employee the employee for life. Just as an employee can leave their job (resign) at any point in time by providing prior notice, an employer can also terminate an employee’s job in two typical ways:
- Termination With Cause
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- consider by Ontario courts as the “capital punishment crime” of employment law, this is usually for the most severe of employee misconduct, such as serious issues of:
- insubordination (disobeying orders)
- inexcusable absenteeism and lateness
- misconduct (dishonesty, criminal acts, sexual harassment)
- incompetent work performance
- workplace harassment
- consider by Ontario courts as the “capital punishment crime” of employment law, this is usually for the most severe of employee misconduct, such as serious issues of:
2. Termination Without Cause
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- here, the employer is permitted to end an employee’s job for any reason (or for no reason at all) – but it cannot be for discriminatory reason or as a reprisal (unlawful retaliation)
- the most common form of employee’s losing their job
The difference between a termination of employment with cause and a termination of employment without cause is critical. Most importantly, an employer proving it had just cause to terminate the employee’s job allows it to immediately “fire” the employee, with no prior notice and no financial severance package. On the flip side, if an employer fires the employee alleging just cause but is unsuccessful in a wrongful dismissal claim, it will not only be liable to pay the employee’s severance package, but possibly bad faith damages or punitive damages as additional compensation.
What Happens in a Wrongful Dismissal Case
In Ontario, an experienced employment lawyer can assist an employee terminated from their employment initially by assisting with severance package reviews and severance package negotiations and, if necessary, a wrongful dismissal legal claim.
General Steps in a Wrongful Dismissal Case
- Meet with an employment lawyer to discuss the termination of employment, review the severance package (or termination package), or discuss options available to the employee (or employer)
- After retaining an employment lawyer, begin severance package negotiations (where matters typically are resolved between the employer and employee)
- If severance package negotiations are unsuccessful, commence legal claim for wrongful dismissal against the employee
As with any formal legal dispute, proving a wrongful dismissal claims requires proof (including documentation) as evidence to help strengthen the employee’s chances of being successful in court (although most matters eventually resolve before a trial). That is why it is important for both employees and employers to understand what type of documents could be helpful in proving their side of a wrongful dismissal dispute, including:
- employment contract signed by the employee
- termination letter (or severance package)
- financial compensation (paystubs, bonus plans, Record of Employment, T4 Statement, benefits plans, pension plan documentation, expense reimbursement, job, etc.)
- notes of incidents (particularly important in terminations that also involve human rights (discrimination) complaints, or workplace harassment issues)
- job search efforts (activities taken to obtain re-employment)
Contact Employment Lawyer
If you are an Ontario employer looking for an employment lawyer for business, it is important to consult about your options before making the decision to terminate employment. This will help you obtain the proper termination documentation for your employee and help minimize a wrongful dismissal dispute.
If you are an employee who has been terminated from your employment, it is important to seek legal advice even if you have a written employment agreement that appears to restrict your severance pay entitlements. You may be entitled to severance pay compensation under Ontario employment law.
No matter which side you happen to be on – an employee recently dismissed from your employment, or are worried you may dismissed from your employment, or an employer facing a wrongful dismissal claim by a former employee – you can easily reach out to Bune Law at 647-822-5492 for guidance and representation from an experience employment lawyer.
Disclaimer: The content on this website and blog is not legal advice or legal opinion of any kind, and is only general information. It is in no way particular to your individual case and should not be relied upon in any way. The outcome of a legal matter depends on its unique circumstances, and prior successes are not indicative of future results. No portion or use of this website or blog will establish a lawyer-client relationship with the author, this law firm or any related party. Should you require legal advice for your particular situation, please fill out the form below, or call 647-822-5492, to request an initial consultation.
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