Wrongful Termination: A Guide for Employees

Both federal and provincial legislation in Canada regulates the termination of employment. It is governed by the Employment Standards Act, 2000 (ESA) in Ontario and the Canada Labour Code (CLC) at the federal level. Those who overlook these rules may fall prey to wrongful termination. Losing a job can be stressful, but understanding Canadian employment laws may help individuals recognize whether their termination was fair.

Wrongful Termination and Its Types

Wrongful termination is often called wrongful dismissal and happens when an employer unlawfully terminates the employee’s contract, going against the labour law. There are laws regarding termination of employment in Ontario that aim to protect the rights and interests of employees and provide fair treatment for each side.

The Employment Standards Act, 2000 (ESA), which specifies minimum criteria for termination compensation, notice, and severance, is usually used in Ontario when filing allegations of wrongful dismissal. For instance, a worker terminated without cause is entitled to a minimum of one week’s notice, up to a maximum of eight weeks, for each year of service. Employers may provide notice or pay instead of notice, but they risk legal repercussions if they don’t adhere to the ESA’s basic requirements. 

No one wants to be terminated illegally in the workplace, and fair treatment becomes essential. It makes sure that employees are equal regardless of their religion, race, and age. Also, it promotes compliance, preventing harassment and discrimination.

What’s considered wrongful dismissal? Understanding termination laws is essential and we will go over termination types. 

Types of Terminations

• Termination with cause

This is considered a fair termination since the employee may not fairly perform his tasks or because of misconduct. So, in this case, the employer does something wrong or doesn’t fulfill tasks. 

• Termination without cause (wrongful termination)

This one is not fair because the termination happens without any specific reason, no specific misconduct. So, if you have been terminated without prior notice or severance, it’s most commonly a wrongful dismissal. Or maybe you were terminated because of discrimination which the Ontario Human Rights Code prohibits. 

For example, if a software firm employs a developer who consistently misses deadlines and produces subpar code, the corporation could be justified in firing the developer. On the other hand, the developer must receive appropriate notice or severance if the firm must lay off the developer without good reason owing to financial constraints and needs to decrease its personnel. In Canada, it is illegal to fire someone without giving them a good cause or the right amount of money.

What to Do During Wrongful Termination?

Let’s explore what to do if you’re wrongfully terminated.

1. The first step is to review your employment contract, which outlines every term you need to know, including notice periods, severance pay, etc. 
2. Then, you should keep records of what happened and create a document. Maybe you can record whatever the employer did with emails and letters and then use it as proof. This guarantees that everything is documented, including the words said, and prevents the employer from claiming they said or did anything they didn’t. Having any documentation related to your job, such as copies of your contract or performance reviews, might also be helpful.
3. Contact a lawyer in Canada to discuss why you are fired and understand the laws related to wrongful termination. Many employees may think that they cannot be terminated. without reason, however, if the employer already gave notice or severance, they can fire you. 

But you may have some questions; let’s answer the common ones:

• What if there is no formal written contract? The common law may apply.
• Generally speaking, how many days before the termination should you get a notice? 

Here is some information about the basic requirements provided by the Government of Canada. 

Individual Termination Requirements

• Employers must provide a minimum of 2 weeks’ written notice or pay instead of notice.
• The notice period is extended to one week for each year of service, up to a maximum of eight weeks, for workers with three or more years of service.
• Employers can combine notice and pay in lieu.
• No notice is required if the employee:
  • Has worked less than 3 consecutive months.
  • Quits voluntarily.
  • Is dismissed for just cause.
  • Is on a temporary layoff that doesn’t count as termination.
  • Signed a contract with a specific end date.

Employer Obligations Upon Termination

• Employers should provide details of the benefits the employee will get, including information about:
  • Wages.
  • Vacation pay.
  • Severance pay.
  • Other employment-related benefits.
• If an employee has 12 consecutive months of service, the employer must also provide severance pay.

Severance Pay

Employees with 12 months of continuous employment are entitled to severance pay. The employee is entitled to whatever figure is greater for determining severance pay:

• For each year they have worked for the employer, they will get two days’ pay.
• A minimum of five days’ wages, regardless of how long they have worked.

Unjust Dismissal and Constructive Dismissal

If an employee is not protected by a collective agreement and has at least 12 months of service, they may be subject to unjust dismissal.

• Employers might have to do the following:
  • Reinstate the employee.
  • Provide compensation.

When an employee quits as a result of major changes to their employment conditions, this is known as a constructive dismissal.

Additional Considerations

• Employers must follow both individual and group termination laws.
• Employees may file a complaint or pursue civil action for wrongful dismissal while the Labour Program investigates their case.

Why Working with a Lawyer is a Wise Choice

It might be a smart move to work with a lawyer, particularly when dealing with complicated employment-related concerns like discrimination or wrongful termination. Corporate lawyers may offer customized advice and have a thorough grasp of employment regulations, protecting your rights. They may assist you in gathering the necessary evidence for your case, negotiating a just settlement, and avoiding the expensive errors that might occur when attempting to manage legal affairs alone.

Having a legal representative also provides peace of mind. Whether it’s obtaining severance, collecting outstanding pay, or resolving unjust treatment, they fight for your best interests. You can concentrate on going ahead knowing you have professional support to help you get the best possible conclusion when your case is being handled by a legal specialist. Next time you look for a legal professional, opt for legal service marketplaces.

Now that you know all about wrongful termination, double-check all the steps and get legal help by subscribing to LawVo. 

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