Short answer: An employer can end employment without cause by giving proper notice or pay instead. Termination for cause, with nothing paid, is reserved for serious misconduct and is hard for employers to prove. A wrongful dismissal happens when an employee is let go without the notice or pay they are owed, including when cause is alleged but not proven.
Without cause is the normal case
In Ontario an employer can usually end employment for any reason that is not discriminatory or a reprisal, as long as it provides the required notice or pay instead. Most terminations are without cause. The question is then how much notice is owed: the Employment Standards Act minimum, or common law reasonable notice. See severance pay in Ontario.
What just cause requires
Just cause is the most serious response an employer has, and courts treat it that way. The Supreme Court of Canada in McKinley v. BC Tel requires a contextual, proportional approach: the misconduct has to be so serious that the employment relationship cannot continue. Examples that can qualify, depending on the facts, include serious dishonesty, theft, violence, serious harassment and repeated wilful disobedience after clear warnings.
Poor performance alone is rarely cause unless the employer set clear expectations, gave warnings and time to improve, and the problems continued. A single lapse in an otherwise good record often is not enough.
Common law cause is not the same as ESA wilful misconduct
Even where an employer proves just cause at common law, it may still owe the minimum ESA termination and severance pay. The ESA exemption is narrower: it applies only to wilful misconduct, disobedience or wilful neglect of duty that is not trivial and has not been condoned. Careless or unintentional conduct can justify dismissal at common law and still leave the ESA minimums payable.
Constructive dismissal
You can be dismissed without being fired. A constructive dismissal happens when the employer makes a significant unilateral change to a fundamental term, such as a large pay cut, a demotion or a major change in duties or location, or creates a poisoned work environment. The employee may treat the employment as ended and claim notice, but timing matters: staying too long can be treated as accepting the change.
What a wrongful dismissal claim can recover
- pay and benefits for the reasonable notice period, less income earned from new work
- bonus, commission and incentive pay that would have been earned during the notice period, depending on the plan wording
- damages for bad faith in the manner of dismissal in appropriate cases
- human rights damages where the dismissal was discriminatory
What to do if you were fired for cause
- Ask for the reasons in writing if they were not given.
- Keep your performance reviews, warnings, emails and any record of how the conduct was handled.
- Do not sign a release without advice.
- Start looking for comparable work and keep a record of your search.
- Note the two year limitation period for a court claim.
Frequently asked questions
What counts as wrongful dismissal in Ontario?
Ending employment without the notice or pay instead of notice the employee is owed under the ESA, the contract or the common law, including where cause is alleged but cannot be proven.
Can I be fired without cause in Ontario?
Yes, as long as the employer gives proper notice or pay instead, and the reason is not discriminatory or a reprisal.
What is just cause for termination in Ontario?
Serious misconduct that makes continuing the relationship impossible, assessed in context and with proportionality. It is a high bar for employers.
Am I entitled to severance if fired for cause?
If cause is proven at common law, common law notice is not owed, but the ESA minimums may still be payable unless the conduct was wilful misconduct.
How long do I have to sue for wrongful dismissal in Ontario?
Generally two years from the dismissal.
What is constructive dismissal?
A significant unilateral change to a fundamental term of employment, or a poisoned workplace, that lets the employee treat the job as ended and claim notice.
Talk to our team
This guide is general information, not legal advice. For advice on your situation, see our employment lawyer in Toronto page. To book a paid consultation (30 minutes, $150 plus HST, paid when you book), book online or call (647) 271-1646. The phone is answered 24 hours a day, 7 days a week, and office meetings are by appointment. Civitas Law is a team of legal professionals under the leadership of lawyer Nasibeh Mehrpouyan, serving clients in English, French, Farsi, Russian and Serbian.