Can You Get EI After Being Wrongfully Terminated in Ontario?
Losing your job is stressful enough. Losing it in a way that feels unfair can make everything worse. One of the first questions many Ontario employees ask is: can you still get Employment Insurance (EI) after being wrongfully terminated?
In many cases, yes. If you lost your job through no fault of your own, have enough insurable hours, and are still ready and able to work, you may qualify for EI regular benefits. A potential wrongful dismissal claim does not automatically disqualify you from EI.
That said, EI and wrongful dismissal are not the same legal issue. EI focuses on why your employment ended and whether there was misconduct. A wrongful dismissal claim focuses on whether your employer ended the relationship without giving proper notice, pay in lieu, or other legal entitlements. Service Canada itself says the EI system is not meant to judge the employer’s conduct or provide redress for an unjust dismissal; its role is to decide whether the claimant lost work because of actions within their control.
The short answer: yes, often
If you were terminated without cause, laid off, or pushed out in circumstances that may amount to constructive dismissal, you may still be eligible for EI. The key question is usually whether Service Canada views the job loss as happening through no fault of your own.
By contrast, if Service Canada decides you were dismissed for misconduct, regular EI benefits may be denied. Importantly, “misconduct” under EI is not the same thing as simply being a poor fit, making mistakes, or underperforming. The federal guidance says there may be no misconduct where the dismissal was for incompetence, unsatisfactory performance, inaptitude, or inexperience, unless the conduct was wilful or reflected unwillingness.
EI and wrongful dismissal answer different questions
This is where many employees get confused.
You can have a strong Ontario wrongful dismissal claim and still qualify for EI because the two processes ask different questions:
EI asks: Did you lose your job through no fault of your own, and do you otherwise qualify?
A wrongful dismissal claim asks: Did your employer terminate you without giving the notice, pay in lieu, severance, or other compensation the law requires?
In Ontario, wrongful dismissal commonly refers to a non-union employee being let go without proper notice or pay in lieu, and common-law notice can exceed ESA minimums.
That means a person can be wrongfully terminated and still receive EI, especially where the termination was without cause and there is no finding of misconduct.
When EI is usually available after termination
EI is commonly available where an employee was:
terminated without cause
let go because of restructuring, shortage of work, or business reasons
dismissed after a workplace conflict that does not amount to misconduct
forced out after a major unilateral change that may support a constructive dismissal claim, assuming they otherwise meet EI requirements
To qualify, you still need to meet the standard EI requirements, including having enough insurable hours in the qualifying period, being without work and pay for at least 7 consecutive days, and being ready, willing, and capable of working. As of late 2025, the number of hours required generally ranges from 420 to 700, depending on the regional unemployment rate and any prior violations.
When EI may be denied
EI problems often arise where the employer alleges cause. But the employer’s label is not the final word.
Service Canada says it must gather facts from both the employee and the employer, weigh credibility objectively, and make a decision based on the evidence, not assumptions. It also states that the employer’s version carries neither more nor less weight than the claimant’s version.
This matters because many employees are told they were fired “for cause” when the real issue is closer to poor performance, personality conflict, or a workplace breakdown. Those situations do not always amount to EI misconduct.
What if your ROE says “dismissal”?
Do not panic if your Record of Employment (ROE) uses a dismissal code.
Under the federal ROE guide, Code M is used when the employer initiates the separation for a reason other than layoff or mandatory retirement. In other words, “dismissal” on an ROE is broader than a legal finding of misconduct. Service Canada still has to investigate the facts and decide whether the loss of employment was really caused by misconduct for EI purposes.
That is why employees should not assume they are ineligible for EI simply because the ROE wording looks unfavourable.
How severance, pay in lieu, and wrongful dismissal settlements affect EI
This is one of the biggest practical issues.
Under the usual EI rules, vacation pay, severance pay, and wages paid on separation are treated as earnings and can be allocated against EI benefits. The government’s earnings guidance also says that damages for wrongful dismissal paid through a court order or settlement are generally treated as earnings and allocated from the week of layoff or separation, with legal expenses taken into account.
But there is an important temporary measure currently in effect. As of March 16, 2026, the federal government says that where the claim or allocation starts between March 30, 2025 and April 11, 2026, earnings from separation, including severance pay and pay in lieu of notice, are not deducted from EI benefits.
That temporary rule can make a significant difference for Ontario employees who were recently terminated and are also negotiating a severance package. It also means older blog posts on this topic may now be incomplete or outdated if they discuss only the normal allocation rules.
Apply for EI right away - even if your ROE is missing
A common mistake is waiting.
The federal government says you should apply for EI as soon as you stop working, even if you have not yet received your ROE. If you wait more than 4 weeks after your last day of work, you may lose benefits.
So even if you are speaking with an Ontario employment lawyer, challenging the termination, or negotiating more compensation, you should usually still submit your EI application promptly. Your legal claim and your EI application can move forward at the same time.
What if EI is denied?
If your EI claim is denied after a termination, you still have options.
You can ask Service Canada for an EI reconsideration. The current federal guidance says you generally must request reconsideration within 30 days after the decision was communicated to you. If the reconsideration is unsuccessful, you can appeal to the Social Security Tribunal within 30 days of receiving the reconsideration decision.
This is especially important if the denial is based on an allegation of misconduct that you dispute.
Practical steps after a wrongful termination in Ontario
If you have been wrongfully terminated or believe your dismissal was unfair, here are the first steps to take:
Apply for EI immediately. Do not wait for your severance negotiation to finish.
Get your ROE and termination documents. Keep the termination letter, severance offer, benefit information, and any emails about the dismissal.
Do not sign a release too quickly. Before accepting a package, consider getting legal advice about whether the offer reflects your real entitlements. See Vanguard Law’s pages on wrongful dismissal, severance package review, and what is considered wrongful termination in Ontario.
If EI is denied, challenge it fast. Reconsideration and appeal deadlines matter.
FAQ: EI after wrongful termination
Can I get EI if I was fired without cause in Ontario?
Often, yes. If you lost your job through no fault of your own, have enough insurable hours, and remain available for work, you may qualify for EI regular benefits.
Can I get EI while negotiating severance?
Often, yes — but the treatment of separation payments matters. Under the usual rules, severance and wrongful dismissal damages may be allocated against benefits. However, as of March 16, 2026, a temporary federal measure says separation earnings are not deducted if the claim or allocation starts between March 30, 2025 and April 11, 2026.
Does an ROE Code M mean I am automatically disqualified?
No. Code M means the employer initiated the separation by dismissal or suspension, but Service Canada still has to assess the facts and decide whether there was EI misconduct.
Can I sue for wrongful dismissal and apply for EI at the same time?
In many cases, yes. An EI claim and a wrongful dismissal claim serve different purposes. EI addresses income support eligibility; a wrongful dismissal claim addresses whether the employer breached your legal entitlements on termination.
Final takeaway
So, can you get EI after being wrongfully terminated? In many cases, yes.
If you were let go without cause, forced out, or terminated in circumstances that do not amount to misconduct, EI may still be available. The biggest issues are usually misconduct, insurable hours, availability for work, and how separation payments are treated. And as of March 16, 2026, there is a temporary federal rule that may make EI more accessible even where severance or pay in lieu was paid.
If you were dismissed and are unsure whether your package is fair, or whether your employer’s version of events could affect EI, Vanguard Law can help you assess both the employment-law side and the practical next steps. Start with our pages on wrongful dismissal, severance package review, and constructive dismissal.
Disclaimer: This article is for general informational purposes only and is not legal advice. Employment law and EI entitlement depend on the specific facts of each case.