Tell Me About Wrongful Dismissal Claims in Ontario Employment Law?

What do I Need to Know about Ontario Wrongful Dismissal Claims?

For any employee who has experienced a wrongful termination of employment from their job in Ontario, it is generally thought of as a highly stressful and challenging time to get through, particularly in a difficult economic environment. If you are currently an employee who thinks you might have been wrongfully dismissed, you are not alone. Wrongful dismissal claims are a common concern for employees. In this employment law blog, we discuss the key aspects of wrongful dismissal in Ontario, empowering you with the knowledge to navigate this situation.

• Termination without Cause: This means an employee is terminated with (or without) any reason, such as poor performance, misconduct, redundancy, downsizing or business restructuring, yet the employer fails to provide the adequate amount of notice of termination or financial severance package. (However, discrimination or retaliation cannot be a reason an employer relies on for termination).
• Termination for Cause: This means an employer terminates an employee alleging the employee has committed a valid or legitimate reason, such as wilful misconduct, disobedience or wilful neglect of duty that is not trivial and that has not been condoned by the employer. In such case, an employer does not have to provide the employee with prior notice of termination or a financial severance package. However, if the employer cannot prove or justify its decision to terminate for cause, it will be found a wrongful dismissal, entitling the employee to termination pay and severance pay.

Key Factors in Wrongful Dismissal Claims

• Is there Cause for Termination? Can the employee prove the employee committed such serious behaviour (e.g., wilful misconduct) that justifies an immediate termination for cause without notice of termination or severance package?
• Is there an Employment Contract? Has the employee signed an employment agreement with a termination clause outlining the amount of termination pay or severance pay? More importantly, is the termination clause valid and in compliance with the law?
• Notice of Termination: If there is no just cause for termination, and the employee has not signed a valid termination clause in an employment contract, then the employee may be entitled to full severance under common law (“pay in lieu of reasonable notice”). In such cases, reasonable notice is determined based on several factors, including:
  • Your Length of Service: Generally, the longer an employee has been working with the company, the longer the reasonable notice period (severance package).
  • Your Position: Higher-level positions typically warrant longer reasonable notice periods, such as executives, managers, professionals or technical roles.
  • Your Age: The older an employee, the more the courts are are inclined to give longer reasonable notice periods in wrongful dismissal claim claims (or the amount of severance package an Ontario employment lawyer will seek when reviewing a severance package or negotiating a severance package).
  • Your Employment Prospects: Difficulty finding comparable work strengthens your claim for longer notice, particularly considering an employee’s education, job qualifications and the current economic or labour market conditions.

If you are facing a wrongful termination for cause (or are an employer who needs an employer defence lawyer for a wrongful dismissal claim), call an Ontario wrongful dismissal employment lawyer to review your employment contract, negotiate severance package, and carefully review and discuss your specific circumstances leading up to your termination of employment. Most importantly, an employment lawyer can help with calculating severance pay and, if necessary, help negotiate a severance package with your employer on your behalf. In a consultation, an employment lawyer can help you determine if your severance package is fair and reflects the value of the lost notice period you are entitled to receive for your wrongful dismissal.

If you are an employer or employee needing to speak with an experienced Ontario wrongful dismissal lawyer to discuss your options and next steps on how to deal with workplace issues, call Bune Law, employment law firm in Toronto. You will review and get guidance on your severance package before you agree to sign any termination documents, and help ensure that your severance package is fair and reasonable.