Termination Of Employment

A number of expressions are frequently used to describe scenarios when employment is terminated. These include "release," "released," "dismissed," "fired" and "permanently laid off."

Under the Employment Standards Act, 2000 (ESA) an individual's employment is ended if the company:

- dismisses or stops utilizing an employee, consisting of where a worker is no longer employed due to the insolvency or insolvency of the employer;

- "constructively" dismisses a worker and the employee resigns, in reaction, within a sensible time;

- lays a worker off for a duration that is longer than a "temporary layoff".


Most of the times, when a company ends the employment of a staff member who has actually been constantly employed for 3 months, the employer should provide the staff member with either composed notification of termination, termination pay or a combination (as long as the notice and the number of weeks of termination pay together equivalent the length of notification the worker is entitled to get).

The ESA does not need an employer to provide an employee a reason that their work is being ended. There are, nevertheless, some situations where an employer can not terminate an employee's employment even if the company is prepared to give appropriate written notification or termination pay. For example, an employer can not end somebody's employment, or punish them in any other way, if any part of the factor for the termination of work is based on the employee asking concerns about the ESA or exercising a right under the ESA, such as declining to work in excess of the day-to-day or weekly hours of work optimums, or taking a leave of lack defined in the ESA. Please see the chapter on reprisals.

Getting approved for termination notification or pay in lieu

Certain workers are not entitled to see of termination or termination pay under the ESA. Examples include: workers who are guilty of wilful misbehavior, disobedience, or wilful neglect of responsibility that is not insignificant and has not been condoned by the company. Other examples include building and construction workers, workers on short-term layoff, employees who refuse a deal of affordable alternative work and staff members who have actually been used less than three months.

There are a number of other exemptions to the termination of work arrangements of the ESA. See "Exemptions to observe of termination or termination pay." Please also describe the special rule tool.

The termination-of-employment guidelines are entirely different from any privileges a worker might need to be paid discontinuance wage under the ESA.

Constructive termination

A constructive dismissal may occur when a company makes a significant change to a fundamental term or condition of a worker's work without the employee's actual or implied permission.

For example, an employee might be constructively dismissed if the company makes modifications to the worker's conditions of work that lead to a significant reduction in salary or a substantial unfavorable modification in such things as the worker's work area, hours of work, authority, or position. Constructive termination may also consist of situations where an employer pesters or abuses a worker, or an employer provides a worker an ultimatum to "quit or be fired" and the employee resigns in reaction.

The staff member would have to resign in response to the change within an affordable amount of time in order for the company's actions to be thought about a termination of employment for functions of the ESA.

Constructive termination is a complex and challenging subject. For more details on useful dismissal, please contact the Employment Standards Information Centre at 1-800-531-5551.

Temporary layoff

A worker is on short-term layoff when an employer cuts down or stops the employee's work without ending their work (for example, laying someone off sometimes when there is inadequate work to do). The mere truth that the company does not specify a recall date when laying the employee off does not always suggest that the lay-off is not momentary. Note, however, that a lay-off, even if meant to be momentary, might result in useful dismissal if it is not permitted by the employment agreement.

For the functions of the termination arrangements of the ESA, a "week of layoff" is a week in which the staff member made less than half of what they would generally make (or earns on average) in a week.

A week of layoff does not consist of any week in which the worker did not work for several days due to the fact that the staff member was not able or readily available to work, went through disciplinary suspension, or was not supplied with work because of a strike or lockout at their location of work or elsewhere.

Employers are not required under the ESA to supply workers with a composed notification of a short-lived layoff, nor do they need to offer a factor for the lay-off. (They may, nevertheless, be needed to do these things under a cumulative contract or a work agreement.)

Under the ESA, a "short-lived layoff" can last:

1. not more than 13 weeks of layoff in any duration of 20 consecutive weeks;
or

2. more than 13 weeks in any period of 20 consecutive weeks, but less than 35 weeks of layoff in any period of 52 consecutive weeks, where:- the worker continues to get considerable payments from the employer;
or

- the employer continues to make payments for the benefit of the employee under a legitimate group or worker insurance coverage plan (such as a medical or drug insurance plan) or a genuine retirement or pension plan;
or

- the staff member gets extra welfare;
or

- the employee would be entitled to get supplemental joblessness advantages however isn't getting them because they are employed in other places;
or

- the employer remembers the staff member to work within the time frame approved by the Director of Employment Standards;
or

- the employer remembers the employee within the time frame set out in an arrangement with a staff member who is not represented by a trade union;
or

3. a layoff longer than a layoff explained in 'B' where the employer recalls a worker who is represented by a trade union within the time set out in an arrangement in between the union and the employer.


If a staff member is laid off for a duration longer than a momentary layoff as set out above, the employer is thought about to have ended the worker's work. Generally, the staff member will then be entitled to termination pay.

Written notice of termination and termination pay

Under the ESA, an employer can terminate the employment of a staff member who has actually been used constantly for three months or more if either:

- the company has actually provided the staff member appropriate written notice of termination and the notification period has ended

- the company pays termination pay to the employee where no written notification or less notice than is needed is provided


Written notice of termination

An employee is entitled to discover of termination (or termination pay rather of notification) if they have been continuously used for a minimum of three months. An individual is thought about "used" not only while they are actively working, however also throughout any time in which they are not working but the employment relationship still exists (for instance, time in which the staff member is off sick or on leave or on lay-off).

The amount of notice to which a staff member is entitled depends upon their "duration of work". An employee's duration of work consists of not just perpetuity while the worker is actively working however also any time that they are not working but the work relationship still exists, with the following exceptions:

- if a lay-off goes on longer than a momentary lay-off, the worker's work is considered (or considered) to have been ended on the first day of the lay-off-any time after that does not count as part of the worker's duration of employment, even though the worker might still be utilized for purposes of the "continuously used for three months" qualification

- if 2 different durations of work are separated by more than 13 weeks, just the most recent period counts for functions of notification of termination


It is possible, in some scenarios, for a person to have been "constantly used" for three months or more and yet have a period of employment of less than three months. In such circumstances, the employee would be entitled to discover because an employee who has been continuously utilized for at least 3 months is entitled to see, and the minimum notice privilege of one week uses to a worker with a period of employment of any length less than one year.

The following chart specifies the amount of notification required:

Note: Special guidelines determine the amount of notice required in the case of mass terminations - where the employment of 50 or more employees is terminated at a company's establishment within a four-week duration.

Requirements throughout the statutory notification period

During the statutory notice period, a company needs to:

- not minimize the employee's wage rate or change any other term or condition of employment;

- continue to make whatever contributions would be needed to preserve the employee's benefits strategies; and

- pay the employee the incomes they are entitled to, which can not be less than the staff member's routine salaries for a routine work week each week.


Regular rate

This is a staff member's rate of spend for each non-overtime hour of work in the staff member's work week.

Regular wages

These are salaries aside from overtime pay, trip pay, public holiday pay, premium pay, referall.us domestic or sexual violence leave pay, termination of assignment pay, termination pay and severance pay and particular contractual privileges.

Regular work week

For a worker who normally works the very same variety of hours every week, a routine work week is a week of that many hours, not including overtime hours.

Some workers do not have a regular work week. That is, they do not work the same variety of hours every week or they are paid on a basis other than time. For these employees, the "routine salaries" for a "routine work week" is the typical amount of the regular salaries made by the staff member in the weeks in which the employee worked during the period of 12 weeks immediately preceding the date the notification was provided.

An employer is not allowed to schedule a staff member's holiday time throughout the statutory notification duration unless the employee-after receiving composed notification of termination of employment-agrees to take their vacation time during the notification duration.

If a company supplies longer notice than is needed, the statutory part of the notice period is the tail end of the duration that ends on the date of termination.

How to supply written notification

In many cases, composed notification of termination of employment need to be addressed to the staff member. It can be supplied face to face or by mail, fax or email, as long as shipment can be verified.

There are unique rules for supplying notice of termination if a worker has an agreement of employment or a cumulative arrangement that offers seniority rights that enable a worker who is to be laid off or whose employment is to be ended to displace (" bump") other employees.

In that case, the company needs to publish a notification in the workplace (where it will be seen by the staff members) setting out the names, adremcareers.com seniority and task category of those employees the company plans to terminate and the date of the proposed termination. The publishing of the notice is considered to be notification of termination, since the date of the posting, to an employee who is "bumped" by a staff member called in the notification. However, this notice of termination need to still meet the length requirements set out in the ESA.

There are likewise special rules concerning how notification is provided when there is a mass termination.

Termination pay

An employee who does not get the composed notification required under the ESA needs to be given termination pay in lieu of notice. Termination pay is a swelling sum payment equal to the regular wages for a regular work week that a worker would otherwise have been entitled to during the composed notification duration. A worker earns trip pay on their termination pay. Employers need to also continue to make whatever contributions would be required to preserve the benefits the worker would have been entitled to had they continued to be utilized through the notification period.

Example: Regular work week

Sarah has actually worked for 3 and a half years. Now her job has actually been removed and her employment has been terminated. Sarah was not provided any written notice of termination.

Sarah worked 40 hours a week every week and was paid $20.00 an hour. She also got four percent holiday pay. Because she worked for more than three years however less than 4 years, she is entitled to 3 weeks' pay in lieu of notification.

Sarah's routine salaries for a routine work week are computed:

$ 20.00 an hour X 40 hours a week = $800.00 a week

Her termination pay is calculated:

$ 800.00 X 3 weeks = $2,400.00

Then her vacation pay on her termination pay is calculated:

4% of $2,400.00 = $96.00

Finally, her trip pay is added to her termination pay:

$ 2400.00 + $96.00 = $2,496.00

Result: Sarah is entitled to $2,496.00. The employer should likewise guarantee ongoing protection for any advantage or pension plans that applied to her for three weeks.

Example: No routine work week

Gerry has actually worked at a retirement home for four years. He works each week, however his hours differ from week to week. His rate of pay is $25.00 an hour, and he is paid 6 percent vacation pay.

Gerry's employer eliminated his position and did not offer Gerry any written notice of termination. Gerry was ill and off work for two of the 12 weeks instantly preceding the day his employment was ended. Gerry earned $1,800.00 in the 12 weeks before the day on which his work ended.

Gerry is entitled to four weeks of termination pay.

Gerry's average incomes per week are computed:

$ 1,800.00 for 12 weeks/ 10 weeks (Gerry was off sick for 2 weeks therefore these weeks are not consisted of in the calculation of average profits) = $180.00 a week

His termination pay is determined:

$ 180.00 × 4 weeks = $720.00

Then his holiday pay on his termination pay is computed:

6% of $720.00 = $43.20

Finally, his vacation pay is included to his termination pay:

$ 720.00 + $43.20 = $763.20

Result: Gerry is entitled to $763.20. The company should likewise ensure continued coverage for any benefit or pension that used to him for four weeks.

When to pay termination pay

Termination pay should be paid to a worker either seven days after the staff member's employment is ended or on the worker's next regular pay date, whichever is later on.

Mass termination

Special guidelines for notice of termination might apply in cases of mass termination (when an employer is ending 50 or more employees at its facility within a four-week period).

Meaning of "establishment"

An "facility" is a place at which the employer brings on service. Separate places can be thought about one establishment if either:

- they are situated within the exact same town, or

- an employee at one place has legal seniority rights that reach the other place, allowing the employee to displace another employee (also called "bumping rights").


Effective October 26, 2023, in cases of mass termination, the term "facility" consists of an employee's home, but just if the worker works from home and does not work at any other area where the company brings on business.

This will require that staff members who work solely from another location be thought about for addition in the count when figuring out whether 50 or more employees have actually been ended.

Note that where a worker carries out work both from their home and from another location where the employer brings on company (for example, a workplace), their home is not consisted of in the definition of "establishment". Instead, the worker is thought about to have a connection to the office area and, for that reason, for the function of mass termination, the employee is included with regard to that workplace place.

Example: where several areas are considered one "facility"

ABC Company has a workplace and a warehouse located in London, ON. Sabrina lives in London and works for ABC Company exclusively from another location: she performs work for the company from home and does not work at the office.

For the purpose of mass termination, the business's London office, London warehouse and Sabrina's London home are thought about one "facility."

Employer obligations in a mass termination

When a mass termination occurs, the company should complete and deliver the Form 1 (Notice of termination of employment) to the Director of Employment Standards (Director) by:

- email to esa_form1_notice@ontario.ca.

- fax to (416) 326-7061.

- individual delivery to the Director's office on a day and at a time when it is open.

- mail shipment to the Director's workplace, if the delivery can be validated.


The office of the Director of Employment Standards is found on the 9th flooring, 400 University Avenue, Toronto ON M7A 1T7.

Any notice to the affected workers is not thought about to have actually been given till the Form 1 is received by the Director; in other words, notice of mass termination is ineffective till the Director receives the Form 1.

In addition to offering workers with private notifications of termination, the company must, on the very first day of the notification duration:

- post a copy of the Form 1 provided to the Director in the office where it will come to the attention of the impacted workers.

- offer a copy of the Form 1 to each impacted worker.


The quantity of notification staff members must get in a mass termination is not based upon the workers' length of work, but on the number of employees who have been ended. An employer must offer:

- 8 weeks discover if the employment of 50 to 199 workers is to be ended

- 12 weeks discover if the work of 200 to 499 staff members is to be ended

- 16 weeks discover if the employment of 500 or more staff members is to be terminated


Exception to the mass termination guidelines

The mass termination guidelines do not use if these two things apply:

- the variety of staff members whose work is being terminated represents not more than 10 percent of the staff members who have actually been employed for at least three months at the establishment

- none of the terminations are triggered by the long-term discontinuance of all or part of the employer's company at the establishment


Mass termination: resignation by a staff member

An employee who has actually received termination notice under the mass termination guidelines who desires to resign before the termination date provided in the company's notification must offer the employer a minimum of one week's composed notice of resignation if the staff member has actually been utilized for less than 2 years. If the employment period has been 2 years or more, the staff member must provide a minimum of 2 weeks' composed notice of resignation. However, the staff member does not need to notify of resignation if the company constructively dismisses the worker or somalibidders.com breaches a term of the agreement.

Temporary work after termination date in notice

A company can supply work to a worker who has actually been notified of termination on a momentary basis in the 13-week period after the termination date set out in the notice without affecting the initial date of the termination and without being required to provide any further notice of termination to the employee when the temporary work ends.

If a staff member works beyond the 13-week duration after the termination date and then has their work ended, the staff member will be entitled to a brand-new written notice of termination as if the previous notification had actually never ever been offered. The staff member's period of work will then likewise include the duration of temporary work.

Recall rights

A "recall right" is the right of a staff member on a layoff to be recalled to work by their employer under a term or condition of work. This right is commonly found in cumulative agreements.

A staff member who has recall rights and who is entitled to termination pay due to the fact that of a layoff of 35 weeks or more may choose to:

- keep their recall rights and not be paid termination pay (or severance pay, if they were entitled to discontinuance wage) at that time;
or

- give up their recall rights and get termination pay (and severance pay, if they were entitled to discontinuance wage).


If an employee is entitled to both termination pay and severance pay, they must make the very same option for both.

If an employee who is not represented by a trade union chooses to keep their recall rights or fails to choose, the company must send out the amount of the termination pay (and severance pay, if any) to the Director of Employment Standards, who holds the cash in trust.

If an employee who is represented by a trade union elects to keep their recall rights or stops working to choose, the employer and the trade union must attempt to come to a plan to hold the termination pay (and severance pay, if any) in trust for the worker. If they can not come to an arrangement, and the trade union advises the employer and the Director of Employment Standards in composing that efforts have actually stopped working, the company needs to send out the termination pay (and severance pay, if any) to the Director of Employment Standards, who holds the money in trust.

If a worker picks to give up their recall rights or if the recall rights expire, the cash that is held in trust must be sent to the staff member.

If the worker accepts a recall back to work, the cash that is held in trust will be gone back to the employer.

Exemptions to see of termination or termination pay

Many of these exemptions are complicated. Please call the Employment Standards Information Centre, 1-800-531-5551, if you more details. Please likewise describe the unique guideline tool.

The notice of termination and termination pay requirements of the ESA do not use to an employee who:

- is guilty of wilful misconduct, disobedience or wilful disregard of responsibility that is not unimportant and has not been excused by the company. Note: "wilful" consists of when a worker intended the resulting effect or acted recklessly if they knew or must have known the results their conduct would have. Poor work conduct that is accidental or unintended is typically ruled out wilful;

- was employed for a specific length of time or up until the conclusion of a particular job. However, such an employee will be entitled to see of termination or termination pay if:- the work ends before the term expires or the job is completed; or

- the term expires or the job is not finished more than 12 months after the work began; or

- the employment continues for 3 months or more after the term expires or the task is finished;

See also: Employment Standards Self-Service Tool

Wrongful dismissal

Rights higher than ESA notice of termination, termination pay, discontinuance wage

The rules under the ESA about termination and severance of employment are minimum requirements. Some workers might have rights under the common law that are greater than the rights to discover of termination (or termination pay) and severance pay under the ESA. A worker might desire to sue their previous employer in court for "wrongful dismissal". Employees ought to be conscious that they can not take legal action against a company for wrongful termination and submit a claim for termination pay or severance pay with the ministry for the same termination or severance of employment. A worker must pick one or the other. Employees may wish to acquire legal guidance concerning their rights.