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The laws governing employer-employee relations in Canada are quite complex and often difficult to navigate. The purpose of this page is to provide a brief summary of the core principles of employment law in Ontario. If you suspect that your employer is mistreating you or has wrongfully terminated your employment, you should consult a lawyer immediately to ensure that your rights are protected.

Frequently asked questions

What is "employment law"?

Employment law controls how employers treat employees, former employees, and applicants for employment. It deals with all aspects of employer-employee relations, except for collective bargaining, which is covered by labour law. Employment law involves a broad array of issues, including wrongful dismissal, disability, workplace health and safety, discrimination, sexual harassment, pension plans and retirement.

What is "labour law"?

Labour law covers the relationship between unions, unionized employess and employers. Union representation allows employees to bargain collectively with employers for rights and benefits.

What is "wrongful dismissal"?

The law of wrongful dismissal is a branch of employment law. "Wrongful dismissal" is a legal term which describes a situation in which an employer fires an employee illegally. According to Ontario law, if your employer fires you without good reason it must give you reasonable notice that your job is ending, or alternatively, financial compensation in place of notice, which is called "pay in lieu of notice". If your employer fires you without providing reasonable notice or pay in lieu of notice then you have been wrongfully dismissed.

However, if your employer has "good reason" to fire you then it will be under no obligation to provide reasonable notice. This is known as "cause". For example, if you are fired without notice because you committed theft then your employer may have "cause" to terminate your employment contract without any warning.

What is "constructive dismissal"?
A wrongful dismissal can also occur if your employer makes fundamental changes to the terms of your employment without your consent, such as a job reassignment or a salary reduction, or if your working conditions become intolerable due to improper treatment, such as harassment, sexual harassment, discrimination or bullying. This is known as “constructive dismissal” because if your employer has not actually fired you then your dismissal must be “constructed” from the particular facts of your case.

To what compensation am I entitled?

If you have been wrongfully dismissed then you are entitled to compensation for the wages and benefits, including short-term and long-term disability coverage, that you did not receive as a result of your employer's failure to provide you with reasonable notice of your termination. The period of reasonable notice to which you are entitled will depend on various factors, such as your age, length of service and the nature of your work. There is no clear-cut formula that can be applied to each and every case. If your employer has terminated you in an unduly harsh or insensitive manner you may be entitled to additional damages. You may also be entitled to remedies prescribed by provincial legislation, including the Ontario Employment Standards Act and the Ontario Human Rights Code.

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