What Is Considered Wrongful Termination in Ontario?

Being fired is stressful—and the language people use can make it even more confusing. In Ontario, “wrongful termination” is often used as an umbrella term, but legally it usually falls into a few main buckets.

In plain terms, a termination may be considered “wrongful” when:

1. you were fired without proper notice or pay in lieu of notice (a “wrongful dismissal” claim), and/or

2. you were fired for an illegal reason (like discrimination or retaliation), and/or

3. your employer didn’t technically fire you—but changed your job so drastically that the law treats it like a firing (constructive dismissal).

Below is a general guide for employees and employers in Ontario. (This is legal information, not legal advice for your specific situation.)

First: being fired “without cause” can still be legal

One of the biggest misconceptions is that an employer needs a “good reason” to end employment.

In many non-union Ontario workplaces, an employer can terminate employment without cause—as long as they provide the required notice (or pay in lieu of notice) and meet any other legal obligations.

So the key question is often not “Was it unfair?” but: Were you given what the law (and your contract) requires?

1) Wrongful dismissal: fired without proper notice or compensation

A wrongful dismissal claim (in the civil courts) typically means the employer ended employment without giving the employee:

• the notice they were entitled to, or

• pay/benefits for the notice period (often called a severance package, though legally “severance” can be more specific)

ESA minimums vs. what you may actually be owed

Ontario’s Employment Standards Act (ESA) sets minimum termination rights for many employees. But depending on your situation, you may be entitled to more than ESA minimums through:

• an enforceable employment contract (that may set termination entitlements), or

• common law “reasonable notice” (which can be higher than ESA minimums)

Common law notice is often assessed using factors like your length of service, age, role, and the availability of similar work.

Important practical note: Employers sometimes offer a package that meets ESA minimums but is still less than what the employee may be entitled to overall—especially in non-union settings.

2) “Termination for cause” is a high bar—and mistakes can be costly

If an employer claims just cause, they may try to end employment with no notice and no pay in lieu.

But “cause” is not the same as:

• performance that could be improved

• personality conflicts

• a single mistake (in many cases)

• “we lost trust” without solid, documented reasons

Courts generally treat “just cause” as a serious allegation, and the analysis can be very fact-specific. If an employer alleges cause without a strong legal foundation, the termination can become significantly more expensive.

3) Illegal termination: fired for a reason the law forbids

Even if an employer provides notice or pay, a termination can still be legally problematic if it’s connected to a prohibited reason.

A) Discrimination (Human Rights)

In Ontario, it can be illegal to terminate someone based on protected grounds such as disability, sex, pregnancy, family status, race, age, creed, and others.

These cases can involve:

• being terminated shortly after requesting medical accommodation

• being fired after announcing pregnancy or taking related leave

• a pattern of discriminatory comments followed by termination

B) Reprisal / retaliation

Ontario law can protect employees from retaliation for asserting legal rights, such as:

• asking about Employment Standards rights (like overtime, vacation pay, leaves)

• raising health and safety concerns

• participating in workplace investigations or enforcing rights under certain statutes

A classic red flag is: “As soon as I complained / asked for my rights / raised safety issues, my hours were cut or I was fired.”

C) Termination connected to job-protected leaves

Ontario has job-protected leaves (for example pregnancy/parental leave and certain medical-related leaves). Terminating someone because they took—or tried to take—a protected leave can raise serious legal issues.

4) Constructive dismissal: when you’re forced out (without being “fired”)

Sometimes the employer doesn’t explicitly terminate employment—but makes a major change that effectively ends the original deal.

This can include things like:

• a major pay cut

• a significant demotion

• a big reduction in hours or key responsibilities

• relocating your job far away without agreement

• suspending you in a way that isn’t legitimate in context

When the change is serious enough, the law may treat it as a dismissal—meaning termination entitlements may apply.

Caution: constructive dismissal situations are extremely fact-driven. Acting too quickly (or waiting too long) can affect your options.

5) Common “wrongful termination” scenarios we see in Ontario

Here are examples that often justify getting legal advice:

• You were offered a severance package and pressured to sign quickly.

• Your employer says “cause,” but the reasons feel exaggerated, sudden, or undocumented.

• You were fired shortly after requesting accommodation, taking leave, or raising safety concerns.

• You were told you’re a “contractor,” but you worked like an employee (set schedule, supervision, no real business independence).

• Your job changed drastically and you feel you had no real choice but to leave.

What should you do if you think you were wrongfully terminated?

A few practical steps that help in many cases:

1. Don’t sign anything right away (especially a release) without understanding what you’re giving up.

2. Save your documents: offer letter, contract, pay stubs, benefits info, performance reviews, texts/emails, termination letter.

3. Write down a timeline while it’s fresh (what happened, when, who said what).

4. Be mindful of deadlines. Different legal routes have different time limits, and delay can limit options.

5. Get advice early—especially if cause is alleged or there may be human rights/reprisal issues.

How Vanguard Law can help

At Vanguard Law, we help Ontario employees and employers understand what the law requires after a termination, assess severance and notice entitlements, and navigate complex situations like alleged cause, constructive dismissal, and terminations involving human rights or reprisal issues.

Disclaimer: This post is for general information only and is not legal advice. Your rights and obligations depend on your specific facts and documents.