TERMINATION OF EMPLOYMENT WITHOUT CAUSE

Just Cause

In the first case, when an employer dismisses an employee for “just cause”, the employer must have a legitimate reason for the termination, as the employee will not receive any termination or severance pay. Canadian employment law requires a very high standard to dismiss an employee for just cause. Generally, there must be serious misconduct by the employee (such as theft, violence, fraud, etc.) to warrant receiving no termination or severance pay.

Terminate Without Cause

However, employers can also terminate without cause, so long as the reason is not discriminatory in bad faith. Perhaps you have to rearrange your business or it’s simply not the right fit. In most cases when an employee is terminated without cause, the employer must either provide the employee with the appropriate notice of termination, or pay in lieu of notice of termination. At the very least, the employee is entitled to the minimums contained in the Employment Standards Act.

However, employees can also seek common law reasonable notice, which usually works out to a higher amount that what the Employment Standards Act requires you to pay as termination pay.

Can the Ministry of Labour Help You if You Are Terminated Without Cause in Toronto?

The Ministry of Labour can help employees who are terminated without cause. However, they can only help recover your minimum entitlements to severance pay as per section 57 of the Employment Standards Act. Most employees will get significantly more notice with the common law, which the Ministry of Labour cannot assist with. The Ministry of Labour is not the best route for obtaining a fair severance package.

Employment Insurance While Terminated Without Cause

In most cases, employees who are terminated without cause can apply for Employment Insurance (EI). This is a form of temporary support to workers who have lost their jobs, but the person must meet certain qualifying conditions. If you would like to find out more about EI, your eligibility or other support benefits, please visit the Government of Canada website here.

Signing Termination Papers Before Leaving

An employee terminated without cause does not need to sign the termination papers before leaving. Most termination letters will be accompanied by a deadline. However, deadlines can be extended when reaching out to a lawyer to assist the dismissed employee in reviewing the package to ensure its fairness. It is important to note, that if you do not sign your termination papers before the offer expiry date, your legal rights do not expire with it. Terminated employees have two years to pursue their legal rights to obtain a better severance package than what was originally offered.