Quick answer
What you need to know first
An Ontario employment lawyer reviews your termination letter, employment contract, and severance package to determine if the offer meets your minimum entitlements under the Employment Standards Act and your full common-law reasonable notice. The lawyer also assesses any for-cause allegations, identifies missed bonus or commission pay, and advises on binding deadlines before you sign a release.
What to do immediately after receiving a termination letter in Ontario
The period after receiving a termination letter is critical. Employers often present a severance package with a short deadline for acceptance, hoping you will sign before seeking independent legal advice. Once you sign a full and final release, you typically cannot come back for more. Before you sign, you need to know whether the offer reflects only the statutory minimums under the Employment Standards Act or your potentially much larger common-law reasonable notice entitlements. UL Lawyers reviews your termination letter, the accompanying release, and your employment contract to identify what is missing—such as bonus payments, commissions, benefit continuations, and unpaid vacation pay—and advises on a realistic negotiation range.
- Do not sign the release or severance offer until a lawyer has reviewed it
- Gather your employment contract, termination letter, and any severance proposal immediately
- Note the deadline for acceptance stated in the severance package
- Document any verbal statements made during the termination meeting
- Contact a lawyer to review whether the offer meets ESA minimums and common-law notice
How a lawyer assesses whether your severance package is fair
A fair severance package is not simply what your employer offers. Ontario law has two layers of entitlement: the statutory minimums under the Employment Standards Act, 2000, and the potentially greater common-law reasonable notice period. The ESA provides a formula based on length of service, capped at 26 weeks of termination pay and up to 26 weeks of severance pay for qualifying employees. The common law, however, considers your age, length of service, character of employment, and availability of similar work—often resulting in a notice period measured in months, not weeks. UL Lawyers calculates both figures, reviews your employment contract for any termination clause that attempts to limit you to ESA minimums, and identifies whether that clause is legally enforceable under current Ontario case law.
- Calculation of ESA minimum termination and severance pay entitlements
- Assessment of common-law reasonable notice based on Bardal factors (age, tenure, position, job market)
- Review of employment contract termination clauses for enforceability
- Identification of bonus, commission, and benefit entitlements during the notice period
- Evaluation of whether the release language waives more rights than necessary
When an employer alleges just cause for termination
Employers sometimes label a termination as 'for cause' to avoid paying any severance at all. Under Ontario law, just cause is a high legal threshold. The employer must prove serious misconduct—such as theft, fraud, insubordination, or chronic neglect of duty—that fundamentally breaks the employment relationship. A single mistake, a performance issue, or a personality conflict rarely meets this standard. If you have been terminated for cause, UL Lawyers reviews the allegations, the employer's investigation process, and the evidence they rely on. In many cases, what an employer calls 'cause' does not meet the legal test, and you remain entitled to a severance package. Responding to a for-cause allegation without legal advice can harm your negotiating position and your professional reputation.
- Review the employer's written allegations and any investigation report
- Assess whether the conduct meets the legal test for just cause under Ontario common law
- Advise on a response that protects your entitlement to severance and your reputation
- Negotiate a resignation or separation agreement where cause cannot be sustained
- Prepare for potential wrongful dismissal litigation if the employer refuses to pay severance
Constructive dismissal: when you are forced to resign
Not all terminations come with a letter. A constructive dismissal occurs when an employer makes a fundamental unilateral change to your employment—such as a significant pay cut, a demotion, a relocation, or a hostile work environment—that leaves you with no reasonable choice but to resign. In these situations, the law treats your resignation as a termination, and you may be entitled to the same severance as if you had been let go. However, constructive dismissal claims are fact-specific and can be contested. UL Lawyers reviews the changes to your role, pay, or working conditions, advises whether the situation meets the legal test, and helps you decide whether to resign and claim constructive dismissal or to negotiate an exit package while still employed.
- Identify whether the employer's changes are fundamental and unilateral
- Assess whether you have a reasonable alternative to resignation
- Advise on the risks of resigning without first raising the issue with the employer
- Negotiate a voluntary departure package before you resign where possible
- Prepare a constructive dismissal claim if negotiation is not viable
Employment contract review before you sign or after a dispute arises
Employment contracts contain clauses that can dramatically limit or expand your rights on termination. Termination clauses that attempt to restrict you to ESA minimums must be carefully drafted to be enforceable; Ontario courts have struck down many such clauses for technical deficiencies. Restrictive covenants—non-compete and non-solicitation clauses—can affect your ability to work in your industry after leaving. UL Lawyers reviews employment contracts at two key moments: before you sign a new contract, so you understand what you are agreeing to, and after a termination, to determine whether the contract's termination clause is enforceable and what post-employment restrictions apply. A contract review at the offer stage can save you from leaving significant severance on the table years later.
- Review termination clauses for compliance with ESA and recent Ontario case law
- Assess the enforceability of non-compete and non-solicitation restrictions
- Identify any probationary, layoff, or temporary layoff provisions
- Advise on negotiation points before you accept a new employment offer
- Determine whether a termination clause limits you to ESA minimums or allows common-law notice
Workplace harassment, discrimination, and accommodation issues
Ontario employees are protected by the Ontario Human Rights Code and the Occupational Health and Safety Act against workplace harassment and discrimination based on protected grounds, including disability, family status, and race. If you are experiencing harassment, have been denied a medical accommodation, or face discrimination, you may have remedies beyond a civil lawsuit—including a human rights application to the Human Rights Tribunal of Ontario. These situations often intersect with employment law claims, particularly if the employer's failure to accommodate leads to a constructive dismissal or a termination. UL Lawyers advises on the overlapping legal routes, the applicable limitation periods, and the evidence needed to support a complaint or claim.
- Assess whether workplace conduct meets the legal definition of harassment or discrimination
- Advise on medical accommodation requests and the employer's duty to accommodate
- Identify applicable limitation periods for Human Rights Tribunal applications
- Evaluate whether the situation supports a constructive dismissal or reprisal claim
- Prepare a strategy that coordinates employment law and human rights remedies
Restrictive covenants: non-compete and non-solicitation clauses in Ontario
After a termination or resignation, your former employer may try to enforce a non-compete or non-solicitation clause to restrict where you can work or whom you can contact. Ontario law generally disfavours non-compete clauses and will only enforce them in exceptional circumstances where the restriction is reasonable in scope, geography, and duration, and protects a legitimate proprietary interest. Non-solicitation clauses are more likely to be enforced but still must be reasonable. If you have received a cease-and-desist letter or a threat of litigation from a former employer, UL Lawyers reviews the restrictive covenant, assesses its enforceability, and advises on your options—whether that means negotiating a release from the clause, complying with its terms, or defending against an injunction.
- Review the wording, scope, and duration of the restrictive covenant
- Assess enforceability under current Ontario common law
- Advise on the risks of breaching the clause before you accept a new position
- Respond to demand letters or threatened injunction proceedings
- Negotiate a release or modification of the covenant where possible
Limitation periods and deadlines that can bar your claim
Ontario employment law claims are subject to strict deadlines. A wrongful dismissal claim generally must be commenced within two years of the termination date under the Limitations Act, 2002. However, other deadlines are much shorter: a complaint under the Employment Standards Act must be filed within two years of the alleged violation, and a human rights application to the Human Rights Tribunal of Ontario must be filed within one year of the last incident of discrimination or harassment. Unionized employees must follow grievance timelines under their collective agreement. Missing a limitation period can permanently bar your claim, regardless of its merits. UL Lawyers identifies the applicable deadlines for your specific situation and ensures that any necessary filings are made in time.
- Confirm the two-year limitation period for wrongful dismissal claims under the Limitations Act, 2002
- Identify the two-year ESA complaint deadline and one-year Human Rights Tribunal deadline
- Check collective agreement grievance timelines for unionized employees
- Advise on any contractual limitation periods that may shorten the statutory deadline
- Ensure all necessary filings are prepared and submitted before the deadline expires
FAQ
Frequently asked questions
Employers often include a deadline in the severance offer, but you are not legally required to accept it by that date. However, you should not sign without legal advice. A lawyer can often request an extension of the deadline from the employer while your package is under review. The key is not to sign a release before understanding your full entitlements.
Under the Employment Standards Act, termination pay is based on length of service (up to 8 weeks) and applies to employees with at least 3 months of service. Severance pay is an additional amount (up to 26 weeks) that applies only to employees with at least 5 years of service whose employer has a payroll of $2.5 million or more, or who are part of a mass termination. Both are statutory minimums; common-law reasonable notice can be significantly higher.
An employer cannot terminate your employment because you are on a medical leave protected by the Ontario Human Rights Code or the Employment Standards Act. However, an employer may terminate for legitimate business reasons unrelated to the leave. If you are terminated while on leave or shortly after returning, a lawyer can assess whether the termination was discriminatory or in reprisal for taking the leave.
Do not resign without legal advice. An employer may ask you to resign to avoid paying severance or to avoid a termination record. If you resign voluntarily, you may lose your right to severance and to Employment Insurance benefits. A lawyer can advise whether negotiating an exit package that includes a resignation is appropriate, or whether you should insist on a termination.
Ontario courts generally do not enforce non-compete clauses unless the employer can prove the restriction is reasonable and necessary to protect a legitimate proprietary interest. In 2021, Ontario also passed legislation prohibiting non-compete clauses for most employees, with exceptions for executives and certain sales of a business. A lawyer can review your specific clause and advise on its enforceability.
A fundamental change to your employment contract without your consent can amount to a constructive dismissal. You should not sign a new contract that reduces your pay, changes your role, or alters your termination entitlements without legal advice. A lawyer can review the proposed changes and advise whether you have grounds to treat the change as a termination and claim severance.
Legal fees vary depending on the complexity of your file and the lawyer's billing structure. Some employment lawyers work on an hourly basis, while others may offer a fixed fee for a severance package review or negotiation. During your initial consultation, the lawyer should explain the fee arrangement and provide an estimate of costs based on your specific situation.
Reinstatement is rarely ordered by Ontario courts in non-union wrongful dismissal cases. The typical remedy is monetary compensation for the reasonable notice period. However, reinstatement may be available under the Ontario Human Rights Code if the termination was discriminatory, or under the ESA for certain reprisal complaints. A lawyer can advise on the remedies available in your specific circumstances.
Keep your employment contract, termination letter, severance offer, pay stubs, bonus or commission records, benefit plan documents, performance reviews, and any correspondence with your employer about your termination. Also keep a written record of any verbal conversations, including dates and who was present. These documents are essential for a lawyer to assess your entitlements.