By Samiya Ahmad, Partner and Employment Lawyer, Zayouna Law Firm · Called to the Ontario bar in 2008 | Last reviewed: October 2026
Some people are called into a ten-minute meeting late on a Friday and walk back to their car holding a folder they have not opened. Others learn through an email they have to read three times. Either way, the same questions arrive at once: Why did this happen? Was it handled properly? Is the package fair?
A termination can be painful without being unlawful. In Ontario, employers can generally end employment without a reason, as long as they give proper notice or pay instead and do not act for a discriminatory or retaliatory reason. The real questions are usually narrower: how much notice was owed, whether the employment contract limits it, and whether anything in the timing suggests a protected right was involved.
| Possible entitlement | Where it comes from | Typical range |
| Notice or termination pay | Employment Standards Act, 2000 (ESA) | 1 to 8 weeks, depending on service |
| Severance pay | ESA, for eligible employees | 1 week per year of service, up to 26 weeks |
| Reasonable notice | Common law, unless a valid contract clause limits it | Often several months; can exceed 24 months in rare cases |
| Human rights or reprisal remedies | Human Rights Code and ESA | Depends on the facts |
Step 1: Know the Minimums Under the ESA
The Employment Standards Act, 2000 sets the floor. An employee with at least three months of continuous service is entitled to written notice or termination pay: one week for less than a year of service, two weeks for one to three years, and then one more week for each additional year, up to eight weeks. According to the province’s ESA guide on termination, termination pay is due within seven days or on the next regular pay date, whichever is later.
Severance pay is separate. It applies to employees with five or more years of service when the employer has a payroll of at least $2.5 million, or when 50 or more employees are let go within six months because part of the business closed. It equals one week per year of service, to a maximum of 26 weeks.
These minimums apply even if the employee refuses to sign a release, and an employer cannot contract out of them.
Step 2: Read the Employment Contract
For most non-unionized employees, the bigger number is common law “reasonable notice,” which courts assess using factors such as age, length of service, the type of job, and how hard it will be to find similar work. Reasonable notice is usually far more generous than the ESA minimum.
That is why the termination clause in the employment agreement matters so much. A valid clause can limit an employee to the ESA minimums. An invalid one cannot, and the employee then falls back on common law notice.
What Ontario courts have said about termination clauses
In Waksdale v. Swegon North America Inc. (2020 ONCA 391), the Court of Appeal held that if any part of a contract’s termination provisions breaches the ESA, including the “for cause” section, all of them are unenforceable, even if the employee was let go without cause.
In 2024, a Superior Court decision in Dufault v. Township of Ignace found that language allowing termination “at any time” in the employer’s “sole discretion” violated the ESA, which led to a wave of challenges. On August 6, 2026, in Baker v. Van Dolder’s Home Team Inc. (2026 ONCA 568, heard with Li v. Wayfair Canada ULC), the Court of Appeal held that “at any time” and “for any reason,” read in context, do not by themselves violate the ESA, and that courts should not strain to find ambiguity where none reasonably exists. Waksdale remains good law.
The practical result: contract wording still matters a great deal, but challenges based on “at any time” language alone are now much harder. Whether a particular clause holds up depends on the exact wording and must be read as a whole.
Step 3: Compare the Reason Given With the Record
An employer does not have to give a reason for a without-cause termination. But if it alleges just cause, such as serious misconduct, it is saying no notice is owed at all. That is a high bar under the common law, and an even stricter “wilful misconduct” standard applies before ESA minimums can be withheld.
Look at what the record shows. If you were told your performance was the problem, but your last two reviews were positive and no concerns were raised in regular check-ins, note the gap. Inconsistency does not prove wrongdoing, but it is the kind of fact that shapes negotiations.
Step 4: Look at What Happened Just Before
Timing can matter. Ask whether, shortly before the termination, you:
- made a complaint about harassment, safety, or pay;
- asked for an accommodation for a disability, family status, or religion;
- took or asked for a pregnancy, parental, sick, or other protected leave; or
- asserted a right under the ESA.
The ESA prohibits reprisals against employees for asserting their rights under the Act, and the Ontario Human Rights Code prohibits terminating someone because of a protected ground or for claiming Code rights. Timing alone does not prove a link, but a written timeline of complaints, requests, meetings, and warnings is often the most useful document an employee can prepare.
Step 5: Consider Whether You Were Effectively Dismissed
Not every termination comes with a letter. A significant unilateral change to pay, duties, hours, or reporting lines, or a toxic workplace the employer will not address, can amount to “constructive dismissal.” The Supreme Court of Canada set out the test in Potter v. New Brunswick Legal Aid Services Commission (2015). Employees in this position usually need to act fairly quickly, because continuing to work under the new terms for too long can be treated as accepting them.
Step 6: Do Not Rush to Sign
Many termination packages come with a short deadline to sign a release. Signing usually gives up any claim beyond what is offered. Before signing, it helps to know which part of the offer is the ESA minimum (which must be paid anyway) and which part is additional. Employers often extend deadlines on request, and employees can apply for Employment Insurance while they decide.
Two other practical points: Ontario law expects terminated employees to make reasonable efforts to find new work, so keep a record of applications. And keep everything, including the contract, offer letter, policies, pay stubs, reviews, emails, and the termination letter, in its original form. Avoid posting about the termination online.
Deadlines to Keep in Mind
- Wrongful dismissal lawsuit: generally two years from the termination under Ontario’s Limitations Act, 2002.
- ESA complaint to the Ministry of Labour: generally within two years.
- Human rights application to the Human Rights Tribunal of Ontario: generally within one year of the last incident.
Some of these routes overlap and cannot all be pursued at once, so the choice of forum matters. A Burlington Ontario employment attorney, or any employment law firm Burlington, can usually explain which path fits once they have the contract, the termination letter, and a timeline in hand.
Frequently Asked Questions
Can my employer fire me without a reason in Ontario?
Generally yes, if they give proper notice or pay in lieu and the reason is not discriminatory or retaliatory. A “without cause” termination does not require an explanation.
How much severance am I owed in Ontario?
At minimum, the ESA amounts. If your contract does not validly limit you to those minimums, you may be entitled to common law reasonable notice, which is usually much higher.
Does “at any time” in my contract make the termination clause invalid?
Not by itself. The Court of Appeal held in August 2026 that “at any time” and “for any reason” language, read in context, does not violate the ESA. Other defects in the clause can still make it unenforceable.
Should I sign the release my employer gave me?
Not before you understand what you are giving up. ESA minimums must be paid regardless, so the release usually only covers the extra amount offered.
Authorities & Sources
- Employment Standards Act, 2000, S.O. 2000, c. 41
- Government of Ontario: Your guide to the ESA, Termination of employment
- Government of Ontario: Your guide to the ESA, Severance pay
- Waksdale v. Swegon North America Inc., 2020 ONCA 391
- Baker v. Van Dolder’s Home Team Inc., 2026 ONCA 568
- Human Rights Code, R.S.O. 1990, c. H.19
Disclaimer
This article provides general information about Ontario employment law. It is not legal advice, and reading it does not create a lawyer-client relationship. Employment law in Ontario changes frequently, and every termination depends on its own facts and documents. Employees should speak with a licensed Ontario lawyer about their situation.
