Imagine this: you arrive to work one morning and are called into your manager’s office and told that your employment is terminated without cause. No reason given, just a sudden goodbye, thank you for your service and a financial severance package. To many people, this is the often shocking, stressful and traumatic realm of termination without cause in Ontario’s employment law.
So, what exactly does “termination without cause” mean? Put simply, a termination without cause occurs when your employer lets you go (or fires you from your employment), not because you did anything wrong, but simply because they have the right to do so – without any reason whatsoever (except for human rights discrimination). Ontario employment lawyers also sum it up this way: your employment contract is a two-way street, and you agree to keep working for your company, and they agree to pay you. However, just as you as an employee can choose to quit or resign from your employment at any time (with notice as required by your employment contract, of course!), your employer similarly has the freedom to end the employment relationship at any time, but only if they follow certain rules.
Now, before you panic, understand this important rule: termination without cause does not mean your employer can treat you as a disposable object. Rather, Ontario employment law holds employers accountable for ensuring your employee rights are protected in all situations, especially upon termination of employment (so much so that Ontario courts routinely award wrongfully dismissed employees with additional compensation for an employer’s bad faith conduct).
Simple Overview of Termination without Cause in Ontario Wrongful Dismissal Law
As a simple overview, on a termination without cause, here’s what your employer may owe you depending on your own situation and circumstances:
1. Notice of Termination or Pay in Lieu:
Unless you are legally bound by an employment contract with a limited termination pay clause or probation period, or are terminated for just cause, your employer must give you reasonable notice of termination. Generally, this means that your employer provides you with either working notice (you continue working for a set period of time) or pay in lieu of notice (a lump sum payment calculated based on your seniority and total annual compensation). The amount of notice is determined by various factors, including your age, years of service, position, current economic circumstances (but generally increases with your age and length of service).
2. No Discrimination:
While an employer does not need to provide any reason for a termination without cause, the employer can never base the termination on any discriminatory ground prohibited under human rights legislation, such as your age, race, ethnicity, gender, religion, disability. If you suspect your termination was because of one of these reasons, you might have grounds for a wrongful dismissal claim.
With those basic points in mind, there are important tips to keep an eye out for to obtain a consultation with an experienced Ontario employment lawyer or wrongful dismissal lawyer (especially to get a severance package review and negotiation):
- Sudden termination: Getting let go without any prior warning or performance reviews soon after requesting a medical leave or pregnancy leave may possibly be a sign of discrimination.
- Vague reasons: If your employer gives you flimsy or unclear reasons for your termination, it may be worth discussing with your employment lawyer what additional rights you may have against your employer in a wrongful dismissal claim, such as discrimination or reprisal
- Pressure to sign something: Be wary of signing any documents, especially severance package agreement and legal release, without taking time to review them with an employment lawyer in Toronto as part of a consultation and review appointment.
So, what can you do if you find yourself facing termination without cause?
- Seek legal advice: A good employment lawyer in Toronto can help you understand your rights, assess your situation, and guide you through the process of negotiating your severance package or even pursuing a wrongful dismissal claim.
- Don’t sign anything quickly: Take your time to review any documents before signing, and do not feel pressured to make a decision on the spot as you could be agreeing to give up significant legal rights, such as full severance package resulting from a wrongful dismissal or constructive dismissal.
- Gather evidence: Document everything, from the date of your termination to any conversations you had with your employer about it. This can be crucial if you decide to pursue legal action, such as a wrongful dismissal or constructive dismissal claim.
- Stay calm and professional: Dealing with a job loss can be emotional, but remember to keep your head held high and maintain a professional demeanor throughout the process.
- Review your employment contract: Check for any specific termination clauses that might apply (often best with an Ontario employment lawyer)
- Understand your termination pay or severance pay entitlements: Speak with an employment lawyer to calculate the minimum notice and severance you may owed based on your specific wrongful dismissal or constructive dismissal.
- Negotiate severance package: With the guidance and legal expertise one of the best employment lawyer in Ontario, you can try to negotiate a higher severance package with your employer.
- Seek legal advice: An employment lawyer can help you understand your rights, assess your situation, and guide you through your options, including pursuing legal action if necessary.
Experiencing a termination without cause might seem like a very confusing, stressful and unfair situation, but remember, as employees, you have rights in Ontario employment law. Understanding the law, seeking professional advice from a top employment lawyer in Toronto, and taking proactive steps can help you navigate this difficult situation and ensure you receive fair treatment.
If you are an employee who believes you were wrongfully dismissed from your employment without a fair severance package, or are experiencing workplace hostility or other difficulties, please call today to discuss your options and next steps on how to deal with a wrongful dismissal. As an employment law firm in Toronto, Bune Law has reviewed and negotiated improvements to many severance packages. 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.