3 Key Things to Know About Termination Without Cause in Ontario

4 minute read
January 21, 2026
Employment & Labour Law, Termination

Jennifer Zeilikman

An employee being “fired” or “let go” or “dismissed” or “terminated” from their employment is a common occurrence and can happen to any employee in Ontario. Sometimes the employee is advised that his or her job has been “eliminated” or “restructured” or that they will be “laid off.” These terms all mean the same thing, and it is simply that the employee has lost their job. The period after an employee was terminated is often very stressful for an employee, and most employees lack of even basic employment law knowledge that relates to dismissals. This blog seeks to provide some basic tips for employees in Ontario who have been fired without cause.

1. What exactly is termination without cause?

Termination “without cause” is a legal employment law term that means an employee was dismissed from their employment by their employer. In cases of termination “without cause” there are no allegations of wrongdoing or misconduct on the part of the employee, and as such, they are owed proper notice of termination. For example, a common reason for termination without cause would be instances where the employer has decided to restructure their business or downsize their operations thereby eliminating the employee’s employment position. There are implied terms in employment contracts or employment agreements that protect the employee against wrongful dismissal by requiring proper notice, payment, or a combination thereof, by the employer. The employer must also not dismiss the employee in a discriminatory or retaliatory manner.

Termination without cause is not the same as being fired “with cause.” As “with cause” means the employer dismissed an employee without providing notice of dismissal or a severance package, as there is an alleged “cause” for the termination of the employee. Statutorily, termination with cause is limited to circumstances where there has been serious misconduct or wrongdoing. The acts of misconduct or wrongdoing will have gone to the root of the employment agreement, and it will become impossible for the employment relationship to continue. Under the common law, an employer may allege cause for various reasons including poor performance.

Thus, what both employers and employees need to understand is that if proper notice of the termination is not provided, then there is the possibility of wrongful dismissal. Wrongful dismissal occurs in circumstances of a termination without cause, and the employer has refused or failed to provide the employee with proper reasonable notice of termination or pay in lieu of that notice of termination or a combination of both.

2. What are an employee’s legal entitlements upon termination without cause in Ontario?

When an employee is terminated without cause, the employee is owed notice of the upcoming termination or pay in lieu of that notice, or a combination of both. Termination pay is simply monetary compensation to the employee in lieu of notice of the termination. Sometimes the employer will provide no notice to the employee or less notice than what the employee should have received from the employer.

The amount of termination pay is dependent upon two factors: 1) Ontario’s applicable statutory legislation and 2) the common law.

Firstly, Ontario’s Employment Standards Act sets out what the employee’s minimum notice period should be statutorily upon dismissal. For federally regulated employees, minimum standards for notice are set out in the Canada Labour Code. Again, these statutory entitlements are minimum entitlements. For more information about what is a federal employee, please refer to our blog entitled “Am I a federal employee?“.

When it comes to severance pay, the employee is only entitled to severance pay compensation if they meet certain criteria that is set out in statute. For provincially regulated employees, the employee must have worked for the employer for five (5) or more years. The time may or may not be continuous or may sometimes be active or not, but the time spent in employment with the employer must be at least five (5) years. The second criterion is that the employer must have a payroll of at least $2.5 million. An employee may also be entitled to severance pay if the employee was subjected to a mass termination in accordance with the various rules set out in the Employment Standards Act.

Secondly, an employee may be entitled to a significantly longer notice period under the common law. For instance, depending on the individual nature of the case, a wrongfully dismissed employee who was terminated without cause may be entitled to over 24 months of common law notice. The amount of common law notice is determined by using a variety of factors. These factors include:

the employee’s age;
length of service;
character of employment (such as the employee’s job description or position); and
the availability of similar employment, having regard to the experience, training and qualifications of the employee.

However, an employment contract or employment agreement may have clauses that limit a dismissed employee’s right to common law notice. It is important that a dismissed employee contact an employment lawyer so that the lawyer can review the employment contract for the employee to see what the employee is entitled to upon termination.

For more information about termination pay, severance pay and the common law, please visit:

3. How can an employment lawyer help?

It is very common that an employee finds themselves in a situation where they have been fired, wrongfully dismissed or terminated from their job. Any employee who has been wrongfully dismissed should approach an employment lawyer to review their own specific case to ensure that their employment rights are protected. Failing to reach out to an employment lawyer may result in the employee failing to obtain their full legal entitlements to compensation related severance pay or termination pay.

For more information about this topic please refer our blogs entitled:

Zeilikman Law can be contacted at (905) 417-2227 or online here to schedule your own confidential consultation with one of our employment lawyers.

The above article is for general information purposes only, does not constitute legal advice or create a solicitor-client relationship. Because each case is unique and factually driven, if you have concerns with regard to the foregoing issues, please make an appointment with one of our lawyers or a qualified legal practitioner elsewhere. We represent clients in the Greater Toronto Area including Toronto, North York, Markham, Vaughan, Thornhill, Newmarket, Aurora, Brampton, Mississauga, Barrie, Ajax, Whitby, Pickering and Oshawa.