Termination without cause in Ontario is a delicate but necessary duty for HR departments.
Imagine you are an HR manager at a mid-sized business in Ontario.
You call an employee into a meeting.
This employee has worked at the company for over three years, and there have been no issues with their conduct or performance.
Still, the company has decided to end their employment.
The reason for this decision is restructuring.
In this article, we will explain what “termination without cause” means in Ontario, the legal responsibilities, best HR practices, and how to handle the situation with care and professionalism.
Partnering with an HR service like TROIS Collective can make this process easier and help protect your business.
Termination without cause happens when an employer ends someone's job for reasons that are not due to wrongdoing or poor performance.
This can occur because of business changes, budget cuts, or shifts in strategy.
HR managers, both junior and senior, should be aware that in Ontario, companies can let employees go without a specific reason.
However, they need to give proper notice or pay them instead, as stated in the Employment Standards Act (ESA).
Sometimes, employees may also be entitled to more generous common law benefits, which go beyond the ESA minimums.
When letting an employee go without cause in Ontario, HR needs to follow some legal steps to keep things fair:
1. Notice or Pay in Lieu
Employers need to provide:
2. Benefits continuation
Employers have to keep the employee's benefits going throughout the notice period, whether they're working or getting paid for it.
3. Record of Employment (ROE)
Employers also need to issue a Record of Employment quickly so the employee can apply for Employment Insurance.
Our fractional HR and HR audit services help you stay clear of legal issues and ensure your practices meet provincial laws and industry standards.
If you're thinking about letting an employee go, there are a few important things to handle before you have that talk.
Even if the termination isn't due to a specific issue, HR management needs to document a few things:
This keeps things clear and can help your organization if the termination is questioned later.
As we mentioned in our blog "How to Conduct a Termination Conversation Professionally and Compassionately," how you say it matters.
Pick a private spot, have all your paperwork ready, and make sure at least two people (like HR and a manager) are there to support the conversation.
A good offboarding is as important as any onboarding or orientation.
So, even when offboarding someone, your company's reputation is still on the line.
Being respectful, clear, and supportive can help keep your employer brand intact and morale high among the remaining team members.
If you are terminating someone, here are important things to remember:
Termination, even without a specific reason, can cause stress for both the employee and the team.
In our blog “How to Improve Mental Health at Work”, we discuss how HR teams can support mental health during the offboarding process.
Termination without cause in Ontario is legally allowed, but that doesn’t mean it should be done carelessly.
As HR professionals, we must handle transitions clearly, legally, and with care.
If you’re unsure how to move forward, like creating termination policies, updating contracts, or having tough offboarding talks, TROIS Collective can help.
We support HR teams at every stage of the employee lifecycle, including terminations.
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