Wrongful Dismissal in Ontario: What It Means and What You Can Do

"Wrongful dismissal" sounds like it means being fired for a bad reason. It does not. In Ontario, a wrongful dismissal is simply a dismissal where your employer failed to give you the notice or pay in lieu of notice the law requires. The reason you were let go usually does not matter. What matters is whether you were paid what you were owed on the way out, and most of the time the answer is no.

What is wrongful dismissal in Ontario?

Wrongful dismissal is a failure to provide adequate notice of termination. In Ontario, a non-unionized employer can dismiss an employee without cause at any time, but in exchange the law requires the employer to give reasonable notice, or pay you the equivalent if they want you gone immediately. When the notice or the pay falls short of what you are actually owed, the dismissal is "wrongful," and you can sue for the gap.

Wrongful dismissal does not mean unfair dismissal

This is the single most common misunderstanding. Ontario is not a "just cause" jurisdiction for ordinary dismissals. Your employer does not need a good reason, a fair reason, or any reason at all to end your employment, as long as the real reason is not discriminatory or a reprisal. Being let go because of a personality clash, a reorganization, or simply because they felt like it is perfectly legal. It only becomes a legal problem when they fail to pay you the notice that goes with a without-cause dismissal.

When is a dismissal actually "wrongful"?

A dismissal is wrongful when any of the following is true:

• You were given less notice or severance than your common law entitlement, which is the usual situation when an employer pays only the ESA minimum.
• You were dismissed for alleged cause that does not hold up, so you received nothing when you should have received full severance.
• You were constructively dismissed, meaning the employer forced you out by fundamentally changing your job, and then did not pay you severance.
• A termination clause in your contract tried to limit you to the minimum, but the clause is unenforceable.

What can you claim in a wrongful dismissal case?

The core claim is the pay and benefits you would have received over the reasonable notice period. A full claim can include:

• Salary over the notice period (up to 24 months for longer-serving, senior employees).
• Bonus, commissions, benefits, pension, and equity you would have earned during that period. In Matthews v. Ocean Nutrition Canada Ltd. (2020), the Supreme Court confirmed that incentive pay is generally included unless the plan clearly takes it away.
• Moral (bad-faith) damages where the employer was untruthful, misleading, or insensitive in the manner of dismissal, as recognized in Honda Canada Inc. v. Keays (2008).
• Punitive damages in rare cases of genuinely egregious employer conduct.

Recent Ontario decisions show what the notice component can look like:

• Campbell-Givons v. Humber River Hospital (2021 ONSC 6317): a 61-year-old with under 2 years of service was awarded 4.5 months, showing that older age lifts notice even on short tenure.
• Rossman v. Canadian Solar (2019 ONCA 992): about 3.75 years of service produced 5 months.

The extra damages beyond notice are real but far from automatic. Here is how often Ontario courts actually award them when they are in issue, and the typical amount:

What is not a wrongful dismissal?

If your employer gave you full and proper notice, or paid you your complete common law entitlement, the dismissal is lawful even if it felt unfair. Likewise, if the employer can actually prove serious misconduct amounting to just cause, you may not be owed notice at all. But true just cause is very hard to prove, and employers allege it far more often than the law allows. If you were handed a "for cause" letter, do not assume it is valid. See fired with cause vs. without cause.

What should you do if you think you were wrongfully dismissed?

1. 1.Do not sign any release or accept any offer on the spot.
2. 2.Keep your employment contract, termination letter, pay records, and bonus or commission plans.
3. 3.Write down what was said and done around the dismissal while it is fresh.
4. 4.Get the situation reviewed before any deadline. The review is free and tells you your real entitlement.
5. 5.Let your lawyer respond. Most wrongful dismissal cases settle through negotiation, not trial.

How long do you have to bring a claim?

In Ontario you generally have two years from the date of termination to start a wrongful dismissal claim, under the Limitations Act, 2002. Leverage is strongest early, while the evidence is fresh and before any acceptance deadline passes, so it is worth getting advice quickly.

If you were paid only the statutory minimum, see how the real number is built in our guide to severance pay in Ontario. If you suspect you were pushed out rather than fired outright, read about constructive dismissal. You can also get a free review of your situation.

About the Author

Priya Sharma

Legal Writer, Mirza Law

Priya Sharma is a legal writer at Mirza Law in Toronto. She writes about wrongful dismissal, workplace rights, and what Ontario employees can do when they are treated unfairly.

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