Tell Me, Briefly: How Employment Law Works in Ontario

In this Ontario employment law blog, we discuss some common topics that employment lawyers typically encounter:

Employee Discipline and Termination Procedures

In Ontario, the primary employment legislation is the Employment Standards Act, 2000 does not require any specific procedures for employee discipline and grievance handling for non-unionized workplaces. However, there are specific conditions by which employment may be lawfully terminate, including specific responsibilities which employers may have to follow.

Generally speaking, the general rule is employers may terminate an employee without cause by providing either reasonable notice as per common law, or at least the statutory minimum amounts of termination pay (or pay in lieu of notice) and, if applicable, severance pay (as long as there is a valid termination clause in an employment contract restricting the employee’s severance package).

On the other hand, employers can terminate an employee’s job “for cause” under common law, in which case they may be able to avoid having to provide an employee with termination pay or severance pay (or a severance package). The standard for just cause under common law is high, because the decision to terminate in these circumstances is considered a severe sanction. Put simply, the employer must show that the misconduct justifies dismissal, taking into account the context and any mitigating factors.

However, it is important for employers to always keep in mind that regardless of whether they have “just cause” for dismissal under common law, an employee must be provided with at least the statutory minimum amount of notice of termination (or termination pay and severance pay (if applicable), unless it can prove the employee was terminated for wilful misconduct, disobedience, or wilful neglect of duty that is not trivial and was not condoned by the employer. This is a much stricter standard for employers to meet than the “just cause” standard under common law, and in some cases, may require employers to prove that an employee’s misconduct intentional or malicious, or in other words, the (Render v. ThyssenKrupp Elevator (Canada) Limited, 2022 ONCA 310).

If an employee believes they have been wrongfully dismissed, they may can file a wrongful dismissal claim seeking, among other remedies, financial compensation in the form of a severance package, and additional damages for breach of the duty of good faith, moral/aggravated damages, and punitive damages.

By contrast, in unionized workplaces in Ontario, employee discipline and termination can only occur for “just cause.” Employees who believe they have been unjustly disciplined can file a grievance through their union. The procedures for discipline and grievance handling are usually outlined in the collective bargaining agreement. After a grievance is filed and processed through the union’s internal grievance procedure, it will be forwarded to arbitration, which may involve either a single arbitrator or a panel of arbitrators, depending on the terms of the collective agreement.

Is there “At-Will Employment” in Ontario?

In Ontario, there is no at-will employment. In other words, employment can only come to an end in one of a few ways:

termination without cause
termination for cause
resignation
frustration of employment

Length of employment	Minimum notice before termination
>1 year	1 week
>3 years	2 weeks
>4 years	3 weeks
>5 years	4 weeks
>6 years	5 weeks
>7 years	6 weeks
>8 years	7 weeks
8 or more years	8 weeks

Under the ESA, all employers who have been employed for at least three months are entitled to statutory minimum notice of termination (or termination pay in lieu of notice), as well as severance pay (if applicable). This means that, as a minimum, employers must provide an employee’s salary and must continue to make any benefit plan contributions that would have been required to be made if the employee had continued to work during the statutory notice period to health benefits plans, RRSP plans, stock option plans, and so on. Further, an employee is entitled to be paid all accrued vacation pay until the end of the minimum statutory notice period after termination.

However, these statutory minimums only apply if an employee has signed a valid employment contract with a termination clause. Otherwise, if an employee has not previously agreed to limit their severance package to the basic minimum entitlements, they are entitled to receive “reasonable notice” of termination (or pay in lieu) under common law, which is far greater. If reasonable notice of termination is not provided, the employee may sue in court for damages equivalent to the reasonable notice to which they were entitled. What will be considered “reasonable” depends on the nature of the employment, the employee’s length of service, the age of the employee, and the availability of similar employment considering the employee’s experience and qualifications.

Book a Consultation with an Employment Lawyer in Toronto

At Bune Law, we understand and are familiar the complexities of workplace law and are committed to helping both employers and employees navigate these challenges. Whether you are an employer or employee dealing with employment contracts, workplace disputes like a wrongful dismissal or constructive dismissal, or simply need guidance on your rights and obligations for a severance package review and negotiation, our experienced employment lawyer is here to assist you.

Book a confidential consultation with our Toronto employment law firm to protect your legal rights to understand your options and protect your rights.

Why Choose Bune Law When You Need an Ontario Employment Lawyer?

Experience in all areas of workplace law, including wrongful dismissal claims, constructive dismissal claims, severance package reviews, severance package negotiations, discrimination and human rights disputes, and employment contract reviews.
Proven track record of successfully resolving workplace disputes through negotiation, mediation, and employment litigation.
Compassionate and personalized approach to each case, ensuring tailored solutions that meet your specific needs.

If you need a Toronto employment lawyer who is committed to delivering strong results and proactive solutions, please contact Bune Law online or by phone today at 647-822-5492.