Types of Dismissal in Employment Law Ontario: A Legal Guide

Understanding the types of dismissal in employment law is crucial for both employers and employees navigating workplace terminations. In Ontario, dismissals can occur for various reasons—such as misconduct or organizational restructuring—each carrying distinct legal implications and employee rights. Familiarity with these categories helps prevent costly mistakes and ensures fair treatment. Consulting lawyers who specialize in workplace disputes can further support compliance with Ontario employment law and protect the interests of all parties involved.

Key Aspects of Ontario Workplace Regulations

Ontario employment legislation provides critical protections for workers and clear guidelines for employers that establish standards for fair treatment.

Key laws include:

• Employment Standards Act (ESA) – Establishes minimum workplace standards for wages, hours, overtime, vacation, and termination policies, which employers must follow when dismissing employees.
• Occupational Health and Safety Act (OHSA) – Defines workplace safety obligations, ensuring employees have a hazard-free environment.
• Ontario Human Rights Code – Protects against discrimination in staffing decisions, including hiring, promotion, and dismissal.
• Workplace Safety and Insurance Act (WSIA) – Governs workers’ compensation for job-related injuries, ensuring financial and rehabilitation support.
  

Unfair Dismissal Employment Law Ontario

Ontario workplace law does not use “unfair dismissal” as a specific legal term, unlike jurisdictions such as the UK or Australia. However, the concept is addressed through related legal doctrines, such as wrongful dismissal, constructive dismissal, or violations of the Ontario Human Rights Code. Employees who believe they were dismissed unfairly may seek remedies under the Employment Standards Act, common law, or human rights legislation, often with the help of unfair dismissal lawyers.

Workplace Separation Scenarios in Ontario

In Ontario and Canadian workplace law, constructive dismissal may also be referred to as a forced resignation, involuntary resignation, or a fundamental breach of the work agreement. These terms describe situations where an employee quits due to significant, unilateral changes to their job made by the employer. While the employee technically resigns, the law treats it as a termination initiated by the employer due to the unfair or unlawful nature of those changes.

1. Wrongful Dismissal

Employment law wrongful dismissal occurs when an employer terminates an employee without providing the legally required notice or severance pay. Ontario’s ESA outlines the minimum standards for termination, including notice periods and compensation. Employees who are wrongfully dismissed can file claims through legal counsel, such as a wrongful dismissal lawyer Toronto, to pursue appropriate remedies.

Common Causes of Wrongful Termination

• Failure to provide proper notice or pay-in-lieu of notice
• Termination without just cause despite employer claims
• Retaliatory dismissal (e.g., firing an employee for reporting workplace issues)
• Dismissal violating human rights protections

Legal Remedies for Employees

Wrongfully dismissed employees can pursue compensation through legal action. They may be entitled to:

• Severance pay based on years of service
• Lost wages due to unjust termination
• Damages for reputational harm or emotional distress

2. Constructive Dismissal 

Constructive dismissal employment law occurs when an employer significantly changes the fundamental terms of an employee’s job without their consent, effectively forcing the employee to resign. Affected workers may work with constructive dismissal lawyers to determine whether the resignation qualifies for compensation.

Examples of Constructive Dismissal

• Reduction in salary or benefits without agreement
• Demotion or significant changes in job responsibilities
• Toxic work environment leading to forced resignation
• Employer relocation requiring unreasonable commuting distance

How Employees Can Respond

Employees who feel pressured into resignation should:

1. Document workplace changes affecting their position.
2. Seek legal advice before resigning.
3. File a claim for severance pay or compensation if the resignation qualifies as constructive dismissal in Ontario.

3. Termination With Cause

Termination with cause refers to dismissing an employee due to serious misconduct, meaning the employer is not legally required to provide notice or severance pay.However, under just cause for termination of employment, the threshold for justification is high, and employers must present substantial evidence of wrongdoing.

Common Grounds for Termination With Cause

• Workplace theft or fraud
• Repeated policy violations despite warnings
• Harassment or violence toward colleagues
• Gross negligence affecting company operations

Legal Challenges

Employers should seek legal advice under just cause employment law to reduce the risk of legal disputes. If the termination is challenged by the employee, legal proceedings may determine whether severance or compensation is owed.

4. Termination Without Cause

Termination without cause occurs when an employer dismisses an employee for reasons unrelated to misconduct. In such cases, Ontario law requires employers to provide notice or pay-in-lieu based on the employee’s tenure.

Severance Pay Factors

Employees dismissed without cause may receive severance pay under the ESA or common law principles, depending on:

• Years of service – Longer tenure results in higher severance pay.
• Company size – Large employers may owe higher severance compensation.
• Employee role and salary – Senior-level employees may receive additional compensation.

Employee Protections Against Unfair Termination

Ontario’s human rights laws protect employees from termination based on:

• Race, gender, disability, or other protected grounds
• Pregnancy or parental leave status
• Reporting workplace violations (whistleblower protections)

Employees facing non-disciplinary dismissals may consult wrong termination lawyers or a lawyer for employment termination to ensure their severance is fair and lawful.

5. Frustration of Contract

This lesser-known type of job separation in Ontario labour law arises when the working relationship ends due to unforeseen circumstances that make it impossible for the individual to continue in their role. The situation is governed by what is often referred to as frustrated contract law—a principle applied when fulfilling the work agreement becomes impossible through no fault of either party.

Key Legal Points:

• Permanent Condition – Must be long-term or indefinite (e.g., permanent disability); temporary issues don’t qualify.
• No Fault – Caused by unforeseen events, not by employer or employee misconduct.
• ESA Entitlements Apply – Employees may still receive minimum termination and severance pay.
• No Common Law Damages – Additional compensation beyond ESA is typically not available.
• Medical Evidence Required – Employers must assess medical documentation before ending the contract.
• Human Rights Compliance – Employers must accommodate up to undue hardship under the Human Rights Code.

Common Causes:

• Serious illness or disability – If an employee develops a long-term condition that prevents them from working, the contract may be considered frustrated.
• Natural disasters –If a workplace is permanently destroyed (e.g., by fire or flood), making continued work in the role impossible, frustration may apply.
• Legal or regulatory changes – If new laws or rules prevent the employee from performing their job (e.g., loss of a required license), the contract may be frustrated.

Terminations based on frustration often involve disability and long-term leave lawyers to ensure fair and compliant procedures.

Key Types of Lawyers for Unlawful Termination Cases in Ontario

Workplace Law Attorneys

Lawyers in employment law are the most common types of attorneys dealing with workplace terminations. They handle:

• Wrongful termination employment law disputes
• Constructive dismissal
• With/without cause termination
• Severance negotiation
• Review of staff contracts and termination clauses

Best for — Most employees facing standard terminations or needing help with severance packages.

Human Rights Lawyers

These legal experts specialize in discrimination or harassment cases under the Ontario Human Rights Code.

They handle cases where termination involved:

• Race, gender, age, disability, or religious discrimination
• Failure to accommodate a disability or illness
• Pregnancy or parental leave discrimination
• Retaliation for filing a human rights complaint

Best for — Employees who believe their termination was based on discrimination or a protected ground.

Labour Lawyers

Labour attorneys deal with employees who are part of a union and covered under a collective bargaining agreement (CBA).

They:

• Navigate the grievance and arbitration process
• Represent union members in disputes with their employer
• Interpret and enforce CBA terms regarding dismissal

Best for — Unionized workers facing dismissal or discipline. These cases are not typically resolved in civil court but through union mechanisms.

4. Disability and Long-Term Leave Lawyers

Some lawyers specialize in disability-related terminations or frustration of contract claims.

They deal with:

• Dismissals after long-term disability (LTD) claims
• Allegations of frustration of contract due to illness or injury
• Employer obligations under duty to accommodate
• Intersection of employment law and insurance law

Best for — Employees dismissed while on disability or returning from long-term leave.

5. Defamation Attorney

If an employer’s actions or statements damage an employee’s reputation, an attorney for defamation can help.

Common Scenarios:

• Employer falsely accuses the employee of misconduct or criminal activity
• Negative or misleading statements shared in reference checks
• Internal memos or public comments that harm the employee’s professional reputation

Legal Focus:

• Defamation (libel or slander)
• Damage to reputation or career prospects
• Potential claims for aggravated or punitive damages in conjunction with wrongful dismissal

Best for — Employees who believe their employer has damaged their reputation through false or malicious statements before, during, or after termination.

Navigating Unlawful Termination in Ontario

Understanding workplace termination in Ontario is essential for both employees and employers to protect their rights and fulfill legal obligations. Whether dealing with constructive resignation, wrongful termination, termination with or without cause, or frustration of contract, each scenario involves unique legal considerations under workplace law. With support from professionals—such as unfair termination lawyers, workplace law attorneys, or defamation attorneys—individuals and businesses can navigate workplace terminations with greater confidence. Staying informed about the various types of dismissal in employment law ensures fair outcomes and compliance within Ontario’s legal framework.

Need help with a workplace termination issue in Ontario? Speak to an experienced employment lawyer today to protect your rights and pursue the compensation you deserve.