Losing your job is hard enough without wondering whether the severance offer in front of you is fair. If you live or work in Brampton, the rules that decide what you’re owed come from Ontario law, and they’re more generous than most people realize. Here’s a plain-language look at how severance really works.
First, what “wrongful dismissal” means
In Ontario, employers can usually end employment without a reason, as long as they give proper notice or pay instead of notice. A dismissal becomes “wrongful” when the employer doesn’t give you enough notice or pay. So in most cases, the question isn’t whether you could be let go, but whether you were paid what the law requires.
Your two possible entitlements
There are two layers of entitlement, and it’s important to understand both.
The first is the minimum under Ontario’s Employment Standards Act (ESA). It provides termination notice or pay of roughly one week per year of service, up to eight weeks. If you’ve worked there for five years or more and your employer’s payroll is at least $2.5 million, you may also be owed ESA severance pay of one week per year of service, up to 26 weeks. These are the floor, not the ceiling.
The second, and often much larger, is called common law reasonable notice. Unless you signed an enforceable contract that limits you to the ESA minimums, you’re usually entitled to a “reasonable” notice period set by the courts. Judges look at your age, how long you worked there, the kind of job you held, and how hard it will be to find similar work. Reasonable notice can range from a few months to as much as 24 months, and occasionally more in exceptional cases.
The difference can be huge. A 50-year-old manager with ten years of service might get ten weeks under the ESA, but potentially well over a year at common law.
Why your contract matters
Many employment contracts include a termination clause that tries to limit you to ESA minimums. Courts read these clauses carefully, and if any part of the termination language breaches the ESA, the whole clause can be struck out. That’s why it’s worth having your contract reviewed before accepting any offer.
What to do if you’ve just been let go
Take a breath and don’t sign anything right away. Employers often give a deadline, but a short, reasonable extension is common if you ask. Gather your contract, recent pay stubs, benefits information and the termination letter.
You’re also expected to look for new work. This is called mitigation, and it can affect how much you recover. Keep a record of your job search.
Finally, keep an eye on the clock. You generally have two years to start a lawsuit for wrongful dismissal in Ontario, but the sooner you get advice, the stronger your position in negotiations.
Getting advice in Brampton
Most wrongful dismissal cases settle without going to court, often after a lawyer’s letter shows the employer what a judge would likely award. Our article on whether you can win a lawsuit against your employer explains how these cases usually play out, and what to do when you’re facing an employment dispute covers the first steps.
When you’re ready, our Brampton employment lawyers can review your package and tell you what you’re really owed. Learn more about our employment law services.
Get your severance package reviewed.
This article is general information, not legal advice.
