Termination & Layoffs

You were terminated. Now what?

When terminated in Ontario, you have rights under both the Employment Standards Act (ESA) and common law — and common law entitlements often exceed ESA minimums. This guide explains what you're owed, what to do first, and when to push back.

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Types of termination in Ontario

With cause

Employer claims serious misconduct. No notice or severance required — but the bar is very high. Most employers cannot prove cause.

Without cause

The most common. You're entitled to ESA notice (or pay in lieu), and possibly severance pay and common law reasonable notice.

Constructive dismissal

Your employer makes working conditions so bad you have no choice but to quit. Treated legally as termination — you keep your rights.

Temporary layoff

Ontario ESA allows layoffs up to 13 weeks (or 35 weeks with benefits). Beyond that, it becomes permanent termination.

ESA minimum notice periods

These are the minimumamounts under the ESA. Courts often award more under "common law" — typically 1 month per year of service.

Years of serviceMinimum notice (or pay in lieu)
Less than 1 year1 week
1 to 3 years2 weeks
3 to 4 years3 weeks
4 to 5 years4 weeks
5 to 6 years5 weeks
6 to 7 years6 weeks
7 to 8 years7 weeks
8+ years8 weeks
Severance pay (different from notice)

In Ontario, severance pay is separate from termination notice and applies if:

  • You worked at least 5 years for the employer, AND
  • The employer has a payroll of at least $2.5 million, OR laid off 50+ employees within a 6-month period

Amount: 1 week of regular wages per year of service, up to a maximum of 26 weeks.

Example

8 years of service, $1,200/week salary → 8 weeks × $1,200 = $9,600 severance pay (plus separate termination notice of 8 weeks).

Signs you may have a wrongful dismissal claim

If any of these apply, don't sign any release before speaking with an HR professional or employment lawyer.

You were fired without notice or pay in lieu of notice

You were constructively dismissed (made conditions unbearable)

The reason given was pretextual or discriminatory

You were fired shortly after a workplace complaint

You were fired for asserting a legal right (e.g., ESA complaint, human rights complaint, OHSA refusal)

Your action checklist

Request a Record of Employment (ROE) — you need it to apply for EI

Get your termination letter in writing

Review your severance offer — don't sign anything immediately

Check if a non-compete or non-solicitation clause applies to you

File for Employment Insurance (EI) within 4 weeks of your last day

Understand your group benefits — coverage through your notice period and any conversion options

Consult an HR professional before signing a release of claims

Frequently asked questions

Common questions Ontario workers ask after a termination.

Have questions about your specific situation?

Our AI assistant or an HR professional can help you understand your rights, review your package, and decide your next move.

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