Terminating an employee is one of the most challenging responsibilities any employer faces.
It's a decision that impacts lives, requires careful legal compliance, and demands professionalism even in difficult circumstances.
Understanding Ontario's complex employment termination laws is essential for protecting your organization and treating employees fairly.
Termination of employment occurs when an employer ends the employment relationship with an employee.
Just like hiring someone, termination involves several steps.
In Ontario, this process is governed by two primary legal frameworks: the Employment Standards Act, 2000 (ESA) and common law principles.
Unlike some jurisdictions, Ontario is an "at-will" employment province with important protections for employees.
Employers are legally entitled to terminate an employee's employment without cause, but they must provide proper notice.
Termination without cause refers to ending an employee's employment contract without specific or justifiable reasons.
This is the most common type of termination in Ontario and typically occurs due to organizational restructuring, position elimination, budget constraints, or poor performance that doesn't rise to the level of "just cause."
For real-world scenarios, check out our guide on termination without cause examples.
Termination with cause is the exception to the notice requirement.
Your employer is not obligated to provide any notice if you have engaged in willful misconduct or willful neglect of duty.
Just cause termination is extremely difficult to establish in Ontario courts and may include theft, fraud, workplace violence, serious insubordination, or criminal activity affecting employment.
Understanding notice of termination requirements is fundamental to complying with Ontario employment law.
The ESA sets minimum notice periods based on an employee's length of continuous service:
You have three options for providing notice: working notice (employee continues working), pay in lieu of notice (termination pay), or a combination approach.
Here's where many employers make a critical mistake: assuming that providing ESA statutory minimums fulfills all legal obligations.
Unless you have a carefully drafted, enforceable termination clause in your employment contract, employees are entitled to "reasonable notice" under common law.
Common law notice can range from several months to over 24 months for senior executives with long tenure.
Courts examine individual circumstances considering the Bardal factors: age, length of service, position and seniority, and availability of comparable work.
Many employers confuse termination pay with severance pay, but these are distinct entitlements.
Employees with 5+ years of service at companies with a payroll over $2.5 million may be entitled to severance pay under the ESA, separate from and in addition to notice of termination.
Severance pay is calculated as one week of regular wages for each year of service, up to a maximum of 26 weeks.
For example, an employee with 15 years of service earning $1,000 per week would be entitled to 15 weeks of severance pay ($15,000), plus their applicable notice or termination pay.
Mass terminations occur when an employer terminates 50 or more employees at its establishment in the same four-week period, requiring 8 to 16 weeks of notice depending on the number of employees.
As of July 1, 2025, employers must provide each affected employee with three documents on the first day of the notice period, including an Employment Ontario Career Supports information sheet.
Terminating a union employee in Ontario involves additional considerations beyond ESA requirements.
Collective agreements typically contain specific termination procedures, grievance rights, and just cause definitions that must be followed meticulously.
You cannot terminate an employee while they are on protected leaves such as pregnancy leave, parental leave, family medical leave, or other ESA-protected leaves.
You also cannot terminate employment based on prohibited grounds under the Ontario Human Rights Code, including race, creed, sex, age, disability, or family status.
Once you've determined that termination is necessary and ensured legal compliance, the next critical step is conducting the termination conversation professionally and compassionately.
Prepare all documentation, plan what you'll say, choose an appropriate time and private location, and have a witness present.
During the conversation, be direct and clear, provide the written termination letter, explain the package, and listen to the employee's reactions.
Consider seeking professional HR and legal support when terminating employees with significant tenure.
Dealing with senior executives, terminating someone in a protected class or on protected leave, considering just cause termination, planning mass terminations, or facing potential human rights complaints.
At TROIS Collective, we specialize in helping Ontario employers navigate these challenging situations with confidence, compliance, and compassion.
Our team understands that terminations aren't just legal transactions; they're human experiences that require thoughtfulness, professionalism, and expertise.
Termination of employment in Ontario requires a careful balance of legal compliance, business pragmatism, and human compassion.
Know the difference between ESA minimums and common law entitlements.
How you conduct the termination matters; professional, compassionate conversations prevent disputes.
Need expert guidance on employment termination? The team at TROIS Collective is here to help you navigate Ontario's complex employment laws with confidence.
Contact us today to discuss your situation.
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