Wrongful dismissal does not mean your employer was rude, unfair, or made a bad business decision. In Ontario, wrongful dismissal has a specific legal meaning — it means your employer ended your employment without giving you the notice you were legally entitled to, or without paying you the equivalent amount in lieu of that notice.
It is not the same as unjust dismissal under federal law, and it is different from a human rights complaint. Wrongful dismissal is about whether you received proper compensation when you were let go — and in Ontario, most employees who are fired without cause are entitled to significantly more than their employer initially offers.
Example: An employee with 11 years of service is let go and offered 8 weeks of pay — the ESA minimum. Under common law, she may be entitled to 10 to 14 months of notice pay. The difference between what she was offered and what she is owed could amount to tens of thousands of dollars. That gap is a wrongful dismissal claim.
The Step-by-Step Guide
The moment you are let go, your employer will likely hand you a termination letter and possibly a separation agreement with a release attached. The release is the critical document — once you sign it, you almost certainly waive your right to sue for anything more.
You are entitled to a reasonable amount of time to consider any offer and to seek independent legal advice. Do not let anyone pressure you into signing on the spot. Take the documents home and do nothing until you have spoken to a lawyer.
Before you lose access to your work email, systems, or files — collect and save everything relevant. Once you are locked out, getting these documents back can be difficult or impossible.
✓ Your employment contract and any amendments
✓ Your termination letter and any severance offer
✓ Recent pay stubs and T4 slips
✓ Performance reviews and any warnings
✓ Emails about your termination or role
✓ Benefits statements and pension records
While everything is fresh in your memory, write a clear, detailed account of the events surrounding your termination. Include the date, who was in the room, exactly what was said, what reason was given, and whether any alternatives were offered. Details you think you will remember often fade within days. A written account made immediately is far more reliable and useful in a legal claim.
This is the most important step. Most Ontario employment lawyers offer a free first consultation — and in 30 to 60 minutes, a lawyer can tell you whether you have a wrongful dismissal claim, what you are likely entitled to, and what your best options are.
A lawyer will assess your situation based on what courts call the Bardal factors — the key variables that determine how much notice you are owed under common law. These include:
● Your age — older employees typically get more notice because it is harder to find equivalent work
● Length of service — the longer you worked there, the more you are owed
● The nature of your role — senior or specialised positions typically attract longer notice periods
● Availability of similar work — if jobs like yours are scarce, notice periods increase
Do not wait until your legal claim is resolved before applying for EI. Apply at Canada.ca as soon as your last day is confirmed. There is a built-in waiting period — and every week you delay is a week of income you may not recover. Being let go without cause qualifies you for EI. A wrongful dismissal claim does not disqualify you from receiving it while the case is ongoing.
In Ontario, you have three main options for pursuing a wrongful dismissal claim. Your lawyer will help you decide which route is best based on your specific situation.
Option A — Negotiate directly with your employer
Your lawyer sends a demand letter to your employer outlining what you are owed. Many cases are resolved this way — quickly and without going to court. This is the fastest, least expensive path and resolves the majority of wrongful dismissal cases.
Option B — File an ESA complaint with the Ministry of Labour
You can file a complaint under the Employment Standards Act if your employer has not paid you the ESA minimum. This is free to file, but it only recovers ESA amounts — not the potentially much larger common law notice. You cannot pursue both an ESA complaint and a civil lawsuit at the same time for the same termination.
Option C — File a civil lawsuit in Ontario court
For claims up to $35,000, you can use Small Claims Court — which is faster and less formal. For larger amounts, you would file in Superior Court. A wrongful dismissal lawsuit pursues full common law notice, which is almost always more than the ESA minimum and often results in a substantially higher settlement.
Ontario law requires you to take reasonable steps to find a new job while your claim is ongoing. This is called the duty to mitigate. If you sit at home and make no effort to look for work, a court can reduce the compensation you receive.
Keep a record of every job application, interview, and response you receive. This log protects you — it shows you made genuine efforts to find comparable work, which courts look at carefully when calculating your final award.
In Ontario, you generally have two years from the date of your termination to file a civil wrongful dismissal claim. For ESA complaints, the limit is also two years. Missing these deadlines means losing the right to pursue your claim entirely — no matter how strong it is.
Two years sounds like a long time but it passes quickly — and the sooner you act, the stronger your case. Evidence is easier to gather, witnesses remember more, and your employer is less likely to have destroyed records or moved on.
Common mistakes that hurt wrongful dismissal claims
Signing the release too fast
Once signed, it is almost impossible to undo. Never sign under pressure or without independent legal advice.
Badmouthing your employer publicly
Social media posts or public statements can be used against you and may damage your credibility and your claim.
Not looking for new work
Failing to mitigate can significantly reduce what a court awards you. Keep records of your job search from day one.
Waiting too long to get advice
The longer you wait, the harder it becomes to gather evidence and the closer you get to the two-year limitation period.
The bottom line: Most wrongful dismissal cases in Ontario never go to court. They are resolved through negotiation — and employees who get legal advice almost always walk away with more than those who accept the first offer. The process does not have to be long or expensive. But it starts with one decision: speaking to a lawyer before you sign anything.
