How Not to Terminate Employment in Ontario

As employment lawyers in Ontario, we typically hear about various employment terminations from both companies and workers. Often, we are asked to assist with wrongful dismissal claims that involve allegations of bad faith or discrimination, which are some of the most difficult to resolve given the emotions involved on all sides. However, there are a few important tips employers can keep in mind to minimize lawyer for work issues.

1. Be Respectful and Sensitive in the Employment Termination Process

What is sometimes lost in the shuffle is how crucial a job is to a person’s livelihood, particularly from an emotional, financial and psychological perspective. As the Supreme Court of Canada once noted in Reference Re Public Service Employee Relations Act (Alta.), [1987] 1 S.C.R. 313:

“Work is one of the most fundamental aspects in a person’s life, providing the individual with a means of financial support and, as importantly, a contributory role in society. A person’s employment is an essential component of his or her sense of identity, self-worth and emotional well-being.”

It therefore makes sense for employers to take stock of the fact that terminating an employee’s job should be done in a fair, sensitive and respectful manner. This does not mean there is a magic formula for how employers go about the employment termination process. Rather, the idea is to keep in mind that a termination of employment will generally come as a deep hurt and shock to most employees, which is typically then followed by stress, anxiety and worry about the financial implications of losing their (usually) only source of income. As a result, most employers have to provide employees with financial compensation (sometimes called a “severance package“), which is intended to provide a temporary cushion to help the employee transition to their next job.

What happens if an employer does not act with simple decency, respect and fairness in the employment termination process, when they are the most vulnerable?

Well, the courts realize that losing a job is stressful, so if` the employee can show that the dismissal was not only wrongful but was implemented in bad faith, an employee may be entitled to additional compensation called “aggravated/moral damages for bad faith manner of dismissal.” For example, this could include deeply insensitive or callous treatment in the process leading up to, including and following termination, such as:

making false accusations about an employee, such as their performance
damaging the employee’s changes of finding a new job
misrepresenting the reasons for termination
firing the employee with the goal of depriving her of a benefit, such as a severance package, bonus pay or impending promotion
firing the employee in a humiliating or embarrassing manner, such as publicly in front of co-workers

Some practical ways employers can minimize the risk of an employee claiming the employer fired them in bad faith could include, for example, collaborating with the employee to prepare an email sent to colleagues announcing their departure, as this helps provides a semblance of control over how the termination unfolds.

2. Review Employment Contracts and Workplace Policies

An employee’s legal rights under Ontario employment law (and by extension, an employer’s legal rights) are based on fact, not imagined. In other words, how and what legal requirements and options an employer has to terminate employment are based on a valid employment contract – which can be either in writing or verbal. For employers, it is best to have a written employment contract, while for employees it is generally best not to have a written employment contract (since they are protected by common law rights that are generally superior to employment standards legislation under the Ontario Employment Standards Act, 2000).

Why should both employers and employees review any written employment contracts and policies? First, because a written employment contract will establish what ways an employer can terminate an employee’s job (e.g., with cause or without cause termination), and what rights an employee has (e.g., prior notice of termination, a severance package, and how much)? Second, because if an employer has certain workplace policies that were violated by an employee (e.g., workplace harassment policy), it could give them some evidence to support a termination for just cause without having to provide a financial severance package. On the other hand, if an employer has a workplace policy regarding discipline, it will generally be held to account to ensure it followed its own rules before carrying out the termination, as otherwise the employee can argue the employer’s termination was wrongful or carried out in bad faith.

3. Always Consult with an Experienced Employment Lawyer

In Ontario employment law, it is always prudent for employers (and employees) to speak with an experienced employment lawyer when they would like to know what legal rights you have as an employer or employee in Ontario. If you are an employee who believes you were wrongfully dismissed or want to negotiate your severance package, please speak with our experienced wrongful termination lawyer in Toronto regarding your legal rights and options as an employee, including negotiating your severance package to obtain the severance compensation you deserve, as well as wrongful dismissal claim.

Contact a Toronto human rights lawyer by phone 647-822-5492 or fill out the contact form to the side. Our employment lawyer in Toronto would be happy to assist in your employment law matter as quickly as possible.

Disclaimer: The content on this website and blog is not legal advice or legal opinion of any kind, and is only to provide 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.