October 24, 2025 | Daniel Rutman

Things You Need To Know About Wrongful Dismissal in Ontario and How to Deal

wrongful dismissal in Ontario

In Ontario, wrongful dismissal occurs when a worker is terminated without just cause. It can also involve a breach of the employment contract terms under the Employment Standards Act. It may also be reported under other applicable labour legislation in Ontario.

In simple language, this means that an employee was terminated unfairly or illegally. Let’s understand more about the wrongful dismissal situations and how you can deal with them.

Types of Wrongful Dismissal

Ontario is not limited to only one specific situation of wrongful dismissal. Here are examples: the most common now are:

  • Termination Without Cause: In most situations, an employee has the right to receive notice of their termination without cause or compensation instead of termination. An employer that does not provide such notice is wrongfully dismissing the worker.
  • Constructive Dismissal: It occurs when an employer significantly alters the terms of their employment. For instance, changing the job description, deducting salary, and changing working hours. This leaves the employee with no option but to resign. Although this might look like resigning, legally, this will still qualify as dismissal.
  • Termination in Breach of Employment Contract: It happens when an employer terminates employment prior to the term of the contract. In such a situation, the contract term is not fulfilled or not followed, also considered wrongful dismissal.
  • Termination for Discriminatory Reasons: When an employee is terminated due to discriminatory motives, such as race, gender, religion, or even disability. This violates the State’s Human Rights Code and is wrongful dismissal in Ontario
  • Termination for Retaliatory Reasons or Whistleblowing: It happens if an employee is terminated as a result of illegal behaviour, unsafe practices, etc., in the workplace. This situation also qualifies as a wrongful dismissal. This is an important protection to allow employees to report misconduct without concerns over retaliation.

 

How to Identify Wrongful Dismissal in Ontario

If you believe you have been facing wrongful dismissal in Ontario, there are a few things you can consider:

Employment Contract: Review your contract and confirm the employer is respecting the terms regarding dismissal. If the dismissal is not in accordance with the terms of the contract, this could be wrongful.

Termination Notice: Generally, employees are entitled to some notice before being fired, or compensation for that notice period. If you did not receive the proper notice, you may have been wrongfully terminated.

Just Cause: Employers must always have ‘just cause’ to terminate an employee, for example,willful misconduct, willful neglect of duty and conduct that is not trivial and not condoned by the employer. If there is no just cause provided or it does not meet legal standards, you may have been wrongfully terminated.

Severance Pay: Employees with a certain period of service may be severance pay. If they do not provide it or provide it incorrectly, your dismissal could be determined as wrongful.

What to Do After Being Wrongfully Dismissed?

If you think you have been wrongfully dismissed, taking the right steps to resolve matters can surely improve your chances. Here’s what to do:

  • Keep a record of everything: You have to save all of your emails, text messages, letters, and notes about your termination. Document the date, the reason you were given, and any promises made regarding your severance, benefits, or payment. Recording your information accurately is very important if you want to go to litigation.
  • Review Your Employment Contract: Then, decide whether your employment contract or agreement has provisions for termination or notice. Also, think about whether your rights have been violated under your agreement or the Employment Standards Act. 
  • Speak to a Lawyer: Next, speak with an Employment lawyer who practices in employment law and wrongful termination. A lawyer can assess your case, explain your rights and options, or negotiate your compensation for you.
  • Bring a Claim: If needed, then bring a claim to either the Ministry of Labour in Ontario or file a claim in court as required. Your lawyer will advise you of all the dates and procedures.
  • Consider Mediation or Arbitration: Choosing any of these can be quicker and cheaper than litigation. Meditation and Arbitration typically allow for a more equal resolution to the case for both parties involved.

How To Avoid Being Wrongfully Terminated

To avoid being wrongfully dismissed, you must understand your rights as an employee. Here are some steps you can take ahead of time:

  • Understand Your Rights: An employee in Ontario should familiarize themselves with the Employment Standards Act (ESA) and other employment laws. It is crucial to understand the minimum termination standards that the law exists to protect them.
  • Show Written Proof: You should document your performance and any communication with your employer, especially if you think your job might be at risk.
  • Seek Legal Advice Sooner: If you believe your employer might harm your employment relationship. For example, if job duties were recently changed or you received an unfair review, consult a wrongful dismissal lawyer sooner rather than later.

Questions For More Clarity on Your Thoughts

  1. What is the difference between wrongful dismissal and constructive dismissal?

Wrongful dismissal is not being terminated with proper notice or without cause. A constructive dismissal claim relates to being forced to resign due to a forceful change in employment.

  1. How long do you have to submit a claim for wrongful dismissal in Ontario?

You have two years from the last day of work to initiate a claim for wrongful dismissal.

  1. Will I receive severance pay if I was wrongfully terminated?

If you qualify, you could receive severance pay and notice or pay in lieu.

  1. What if my termination was due to discrimination?

Speak with a lawyer and file a complaint with the Ontario Human Rights Commission.

  1. Can a lawyer assist me with negotiating severance?

Yes, a lawyer can help you negotiate a fair severance and, where applicable, full compensation.

How Can Rutman Law Help? Contact Us for Assistance with Your Wrongful Dismissal.

At Rutman Law, we understand how difficult it can be to deal with wrongful dismissal in Ontario. If you suspect that you have been wrongfully dismissed from your employment, you need to be aware of the importance of getting appropriate legal advice from a lawyer. Our experienced and knowledgeable team of experts look forward to assisting you with the complicated legal issues and to ensuring that you are compensated fully for your wrongful dismissal and loss.

Don’t hesitate, contact us today to get a consultation with our employment  lawyer to discuss your rights and to start moving towards justice.

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