Wrongful Dismissal — Ontario
Sourced from Canadian federal statutes and official sources. Provincial information reflects each province's own legislation and court rulings. Written in plain language for general understanding — this is educational content, not legal advice. Our editorial standards
What is this right?
Federally regulated employees with 12 months or more of service get one of the strongest job-protection regimes in the common-law world. The Supreme Court's 2016 ruling in Wilson v. Atomic Energy of Canada made it official: a non-union employee on federal turf cannot simply be paid out — the employer either shows just cause or risks reinstatement.
Notice of termination scales with tenure:
- 3 months to 3 years: 2 weeks' notice
- 3 to 8 years: graduated up to 8 weeks
- 8+ years: 8 weeks' notice
Severance pay kicks in after 12 months: the greater of 2 days' wages per year of service or 5 days' wages.
The bigger weapon is the unjust dismissal complaint under section 240 — an adjudicator can order reinstatement and back pay, not just damages.
When does it apply?
- You work for a federally regulated employer.
- 3+ months of service for notice rights.
- 12+ months of continuous service for severance and unjust-dismissal protection.
- Not available to managers or workers under a collective agreement — union members go through their grievance process instead.
What to Do If You Were Wrongfully Dismissed by a Canadian Employer
The 90-day clock starts the day you're dismissed. Don't let it run out while you're still processing what happened.
- File the complaint within 90 days — this deadline is strict and not extendable.
- Keep your termination letter and your Record of Employment (ROE).
- Ask in writing for reasons for the dismissal — under section 241, your employer has 15 days to provide them.
What should you NOT do?
- Don't sign a release at the door. Once you sign, you've usually given up the s. 240 remedy. Get advice first.
- Don't miss 90 days. It cannot be extended for any reason short of incapacity.
- Don't take the employer's "just cause" story at face value. After Wilson, the bar for cause on federal jobs is high — and the burden sits on the employer.
How Ontario differs from federal law
Ontario provides two layers of termination protection: statutory minimums under the Employment Standards Act, 2000 (ESA) and additional common law reasonable notice.
- Under the ESA, if you have been employed for 3 months or more, your employer must give you written notice or termination pay: 1 week per year of employment, up to a maximum of 8 weeks.
- If your employer has a payroll of $2.5 million or more and you have worked there for 5 or more years, you are also entitled to severance pay: 1 week per year of employment, up to 26 weeks. Severance pay is on top of termination pay.
- The common law (court-developed rules) often awards much more than the ESA minimums. Ontario courts regularly award reasonable notice of up to 24 months, depending on age, length of service, position, and availability of similar work (the Bardal factors).
- Your employer cannot fire you for exercising ESA rights, filing a WSIB claim, taking pregnancy or parental leave, or refusing unsafe work. This is called reprisal and is prohibited under section 74 of the ESA.
- Employers may be liable for constructive dismissal if they make major changes to your job (pay cut, demotion, forced relocation) without your consent.
- Non-compete clauses are banned (ESA s. 67.2): Under the Working for Workers Act, 2021, non-compete clauses in Ontario employment contracts are void (in force 25 October 2021), with narrow exceptions for the sale of a business and certain C-suite executives. If your employer is trying to enforce one, it almost certainly cannot.
- Job posting transparency (ESA s. 8.4): From 1 January 2026, employers with 25+ employees must include the expected salary range (or a stated maximum range) and disclose any AI use in hiring in publicly advertised job postings — Working for Workers Five Act, 2024 (Bill 149, royal assent 21 March 2024).
Additional Steps in Ontario
For ESA complaints (termination pay, severance pay, reprisal), file a claim with the Ministry of Labour within 2 years. For common law wrongful dismissal (seeking damages beyond ESA minimums), you must sue in court — the Ontario Superior Court of Justice handles these claims. Important: filing an ESA claim may affect your right to sue for common law damages, so consider consulting a lawyer before choosing your path. The Law Society of Ontario referral service (1-855-947-5255) provides free 30-minute consultations.
Relevant Law: Employment Standards Act, 2000, S.O. 2000, c. 41, ss. 54–65 (Termination and Severance), s. 74 (Reprisal); Bardal v. Globe & Mail Ltd., 1960 CanLII 294 (ON SC)
Common Questions
What is the wrongful dismissal right in Canada?
Federally regulated employees with 12 months or more of service get one of the strongest job-protection regimes in the common-law world. The Supreme Court's 2016 ruling in Wilson v. Atomic Energy of Canada made it official: a non-union employee on federal turf cannot simply be paid out — the employer either shows just cause or risks reinstatement.Notice of termination scales with tenure:3 months to 3 years: 2 weeks' notice3 to 8 years: graduated up to 8 weeks8+ years: 8 weeks' noticeSeverance pay kicks in after 12 months: the greater of 2 days' wages per year of service or 5 days' wages.The bi...
When does wrongful dismissal apply?
You work for a federally regulated employer.3+ months of service for notice rights.12+ months of continuous service for severance and unjust-dismissal protection.Not available to managers or workers under a collective agreement — union members go through their grievance process instead.
What should I do if I think my Canadian employer fired me without just cause?
The 90-day clock starts the day you're dismissed. Don't let it run out while you're still processing what happened.File the complaint within 90 days — this deadline is strict and not extendable.Keep your termination letter and your Record of Employment (ROE).Ask in writing for reasons for the dismissal — under section 241, your employer has 15 days to provide them.
What mistakes should I avoid with wrongful dismissal?
Don't sign a release at the door. Once you sign, you've usually given up the s. 240 remedy. Get advice first.Don't miss 90 days. It cannot be extended for any reason short of incapacity.Don't take the employer's "just cause" story at face value. After Wilson, the bar for cause on federal jobs is high — and the burden sits on the employer.
Wrongful Dismissal in other states
Same topic, different jurisdiction. Pick the one that applies to you.