Unfair dismissal (wrongful dismissal) happens when your employer terminates you without just cause and without providing adequate notice or severance. Ontario employees are protected under the Employment Standards Act and common law.
Losing your job unfairly can be devastating. Understanding your rights and taking proactive steps helps you safeguard against termination and position yourself for success if dismissal occurs.
What is Constructive Dismissal?
Constructive dismissal occurs when your employer makes fundamental changes that effectively force you to resign. This is an effective dismissal even though you weren’t formally fired.
Common examples:
- Significant salary or hours reduction
- Demotion or major duty changes
- Hostile work environment
- Unreasonable relocation requirements
- Removal of core responsibilities
You can treat constructive dismissal as termination and pursue severance as if you were fired.
Constructive Dismissal Legislation
Ontario recognizes constructive dismissal under common law. When it occurs, you have the same rights as wrongful dismissal—including entitlement to reasonable notice or severance.
Legal test: Has your employer unilaterally changed a fundamental term of your employment?
How to Protect Against Unfair Dismissal
1. Document Everything
Before starting:
- Review employment contracts carefully
- Get salary, benefits, and duties in writing
- Have unclear terms clarified
During employment:
- Keep performance reviews and positive feedback
- Save emails praising your work
- Track completed projects and achievements
- Document any workplace issues immediately
Strong documentation proves your value and protects against false performance claims.
2. Know Your Contract
Understanding your contract helps you:
- Identify employer breaches
- Recognize constructive dismissal
- Spot unenforceable termination clauses
- Know your severance entitlements
Many contracts contain illegal clauses limiting severance. Have a lawyer review it.
3. Address Changes Immediately
If your employer makes significant changes:
- Object in writing immediately
- State you don’t accept the changes
- Reserve your right to claim constructive dismissal
- Get legal advice before resigning
Critical: Continuing work without objection may mean you’ve accepted the changes.
4. Watch for Warning Signs
Red flags signaling potential termination:
- Exclusion from meetings or projects
- Sudden negative reviews after positive feedback
- Being placed on a Performance Improvement Plan
- New requirements only applied to you
- Hostile treatment from management
Consult a lawyer early if you spot these signs.
Preventing Unfair Dismissal
Protect yourself by:
- Following company policies consistently
- Meeting deadlines and expectations
- Maintaining professional conduct
- Documenting your work
- Responding professionally to criticism
While this doesn’t guarantee job security, it makes “just cause” termination much harder.
What to Do If You're Dismissed
1. Don't Sign Anything Immediately
Employers often pressure immediate signatures. Don’t. Take time to:
- Review all documents
- Have a lawyer assess the offer
- Understand rights you’re giving up
Signing releases typically ends your ability to pursue more compensation.
2. Gather Evidence
Collect:
- Employment contract and offer letter
- Pay stubs and performance reviews
- Emails and communications
- Company policies
3. Know Your True Entitlement
Most employees deserve far more than ESA minimums. Depending on age, service, and position, you may be owed 6-24 months of compensation—not just weeks.
Suing for Unlawful Termination
Wrongful Dismissal Claims
Sue if:
- Terminated without just cause
- Notice or severance was inadequate
- Employer acted in bad faith
Courts regularly award significantly more than initial offers.
Constructive Dismissal Claims
If experiencing constructive dismissal:
- Resign and treat yourself as terminated
- Claim severance as if fired without cause
- Pursue damages for contract breach
Get legal advice before resigning to ensure you have a strong case.
Human Rights Claims
If termination involved discrimination, harassment, or reprisal, you may have human rights complaints beyond wrongful dismissal claims.
Time Limits Are Critical
Ontario gives you 2 years from termination to file wrongful dismissal claims. However, acting quickly:
- Preserves evidence
- Strengthens negotiation position
- Enables faster resolution
Don’t wait—consult a lawyer immediately after dismissal.
When to Contact a Lawyer
Seek advice if:
- You’ve been terminated or expect it
- Employer made significant role or pay changes
- You’re pressured to sign severance agreements
- Dismissal seems discriminatory or in bad faith
- You’re unsure about constructive dismissal
Most employment lawyers offer free consultations and work on contingency—you only pay if they secure additional compensation.
Protecting yourself against unfair dismissal requires documentation, awareness of your rights, and understanding constructive dismissal. While you can’t prevent all terminations, knowing the law ensures you’re not taken advantage of when it happens.
