What Happens When an Employee Resigns in Ontario? A Legal Guide to Notice & Contracts

Employee Resignation in Ontario

Written by: Sezar Bune, J.D. | Toronto Employment Lawyer

Date Published: Updated January 18, 2026

Topic: Ontario Employment Law & Resignation Rights

Quick Legal Answer

In Ontario, a resignation notice is dictated by a written employment contract. If there is no written employment contract or if the contract is silent, an employee must generally provide “reasonable notice” under common law. While two weeks is the standard industry practice, senior or specialized roles may require significantly more notice to avoid a “wrongful resignation” claim.

Is Two Weeks’ Notice Actually the Law in Ontario?

A common workplace misconception is that “two weeks” is a statutory requirement. In reality, the Ontario Employment Standards Act, 2000 (ESA) does not set a minimum notice period for employees.

Instead, an employee’s legal obligation comes from two sources:

1. Contractual Law: The specific “Resignation Clause” you signed.

2. Common Law: An implied “duty of good faith” to give your employer enough time to find a replacement.

In other words, if an employee leaves their job abruptly, they may not be violating a government statute, but they may potentially be violating their obligations under the employment contract with the employer.

How Your Employment Contract Impacts Your Resignation

In 2026, employees have become increasingly concerned about “resignation traps.” As a Toronto employment lawyer, I often review employment contracts requiring employees to agree to excessive notice of resignation periods, including 6 weeks or 8 weeks.  This may be acceptable in certain jobs that require significant recruitment efforts, such as senior management or executive employees, but less likely so with entry-level roles (yet we still see this often).

In some other cases, I find that most disputes involving claims of wrongful dismissal arise because an employee did not realize their signed employment required more notice of resignation than “industry” practices. 

Given that such lengthy resignation periods may serve to hinder an employee’s prospects to switch jobs, we also recommend carefully scrutinizing these particular provisions of an employment contract. Among other things, when reviewing an employment contract, employees generally look for specific sections that can dictate their exit, including:

1. The Resignation Clause

If an employment contract specifies 2, 4 or 6 weeks, the employee is generally bound to that timeframe. Leaving early could be considered a breach of contract.

2. Non-Solicitation and Non-Compete Clauses

As of recent legal shifts in the past few years, most non-compete clauses remain void in Ontario (except for C-suite executives). However, non-solicitation clauses are still highly enforceable. If an employee resigns to join a competitor, they may be barred from “poaching” clients or staff. In other words, as existing non-solicitation clauses active, an employee resigning to “take clients with them” can lead to immediate injunctions and lawsuits.

The Financial Risk of “Wrongful Resignation”

Can an employer sue an employee for quitting? Yes. If the employee’s departure is “wrongful” (meaning they did not give enough notice required under the employment contract resignation clause), an employer can claim damages for:

• Replacement Costs: Headhunter fees or temporary agency costs to fill the employee’s role on an urgent basis.

• Lost Profits: Revenue lost because a specialized project was delayed or canceled.

• Direct Losses: Overtime paid to other staff to cover the employee’s sudden departure.

Constructive Dismissal: Quitting “With Cause”

Sometimes, an employee suddenly quits not because they found a better job, but because the employer made continuing in the job impossible. In such cases, an employee may be able to pursue a constructive dismissal claim.

Important: If you are an employee on the verge of resigning due to a toxic environment, workplace harassment, a 20% pay cut, or any major change to their job, simply submitting a “standard” resignation may not be the best course of action. Why? Because if you do, you may be forfeiting your potential right to a severance package. Always consult an employment lawyer to draft a “resignation with cause” to preserve your legal claims.

People Also Ask: Resignation FAQ

1. Can I take back my resignation after giving it?

Possibly, unless the employee resignation was clear, unequivocal, and reasonably accepted by the employer. In such cases, it may be difficult for an employee to “un-quit” (unless the employer agrees to keep them).

2. What happens to my bonus if I resign?

This depends entirely on the applicable wording of the employment contract or bonus plan. For instance, there may be language that states the employee will not be paid their bonus if they are not “actively employed” at the time the bonus is paid out. In my experience as an employment lawyer, I am encounter (and contest) such bonus forfeiture clauses in employment contracts, in order to obtain their full severance pay entitlements.

3. Can I quit immediately if I have no employment contract?

Not safely. Even without an employment contract, an employee may still owe their employer “reasonable notice.” Moreover, if the employee is in a senior or specialized role and quits with zero notice, the could be liable for damages in a wrongful resignation claim.

How Much Resignation Notice Should I Give?

The key element is whether there employment contra the industry “rule of thumb” is two weeks, Ontario law requires “reasonable notice.” What is reasonable depends on the employee’s position, your salary, and how difficult you are to replace. 

Use the table below to assess the standard expectations for your role:

Legal Source	Requirement	Who it applies to
Written Contract	Whatever is written (e.g., 2 weeks)	Employees with a signed employment contract.
Common Law	“Reasonable Notice”	Employees with no employment contract or a “silent” contract.
Ontario ESA	Not Applicable	The ESA does not mandate employee notice.

Best Practices for a Professional Resignation

As an employment lawyer representing clients intending to resign, I typically recommend employees consider the following factors in order to protect their reputation and avoid legal “wrongful resignation” claims (even if generally unlikely):

1. Request personnel file: Specifically any signed employment contract.

2. Calculate “Reasonable Notice” Period: Without a signed contractual agreement, it may be helpful to be practical by thinking from the employer’s perspective – how long will it really take to replace you?

3. Draft a Neutral Letter: State your final day of work and offer to assist in ensuring a smooth transition plan.

4. Secure your final pay: Ensure all outstanding wages, vacation pay, bonus and commissions are accounted for.

Need a Toronto Employment Lawyer?

Navigating a resignation from a high-level position or a toxic workplace requires a strategic approach. Bune Law provides expert guidance on severance negotiations, contract reviews, and constructive dismissal claims.