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A number of expressions are typically used to describe scenarios when employment is terminated. These consist of "let go," "discharged," "dismissed," "fired" and "completely laid off."

Under the Employment Standards Act, 2000 (ESA) an individual's work is terminated if the employer:

- dismisses or stops utilizing a staff member, consisting of where a worker is no longer used due to the insolvency or insolvency of the employer;

- "constructively" dismisses an employee and the staff member resigns, in reaction, within a reasonable time;

- lays a worker off for a period that is longer than a "momentary layoff".


For the most part, when an employer ends the work of a worker who has been continuously employed for 3 months, the employer must provide the staff member with either composed notification of termination, termination pay or a combination (as long as the notification and the number of weeks of termination pay together equivalent the length of notification the staff member is entitled to get).

The ESA does not require an employer to give a worker a reason that their work is being terminated. There are, however, some situations where an employer can not terminate a staff member's work even if the company is prepared to provide correct written notice or termination pay. For example, a company can not end someone's work, or punish them in any other method, if any part of the reason for the termination of employment is based upon the staff member asking concerns about the ESA or working out a right under the ESA, such as refusing to work in excess of the everyday or weekly hours of work maximums, or taking a leave of absence specified in the ESA. Please see the chapter on reprisals.

Qualifying for termination notification or pay in lieu

Certain staff members are not entitled to observe of termination or termination pay under the ESA. Examples consist of: employees who are guilty of wilful misbehavior, disobedience, or wilful disregard of duty that is not trivial and has not been excused by the employer. Other examples include building employees, staff members on temporary layoff, staff members who decline an offer of reasonable alternative work and employees who have actually been employed less than 3 months.

There are a number of other exemptions to the termination of employment provisions of the ESA. See "Exemptions to see of termination or termination pay." Please likewise refer to the unique rule tool.

The termination-of-employment rules are completely different from any entitlements a staff member might need to be paid discontinuance wage under the ESA.

Constructive termination

A useful dismissal may take place when a company makes a significant modification to an essential term or condition of an employee's work without the worker's actual or implied approval.

For example, a worker might be constructively dismissed if the employer makes modifications to the staff member's conditions of work that result in a considerable reduction in wage or a significant negative modification in such things as the employee's work place, hours of work, authority, or position. Constructive dismissal may also include scenarios where a company harasses or abuses an employee, or a company gives an employee a warning to "stop or be fired" and the staff member resigns in action.

The staff member would need to resign in response to the change within an affordable period of time in order for the employer's actions to be considered a termination of work for functions of the ESA.

Constructive termination is a complex and hard topic. For more details on useful dismissal, please call the Employment Standards Information Centre at 1-800-531-5551.

Temporary layoff

A staff member is on momentary layoff when a company cuts down or stops the worker's work without ending their work (for instance, laying somebody off at times when there is inadequate work to do). The mere reality that the employer does not define a recall date when laying the worker off does not necessarily imply that the lay-off is not temporary. Note, nevertheless, that a lay-off, even if meant to be temporary, may result in constructive termination if it is not allowed by the employment agreement.

For the functions of the termination provisions of the ESA, a "week of layoff" is a week in which the staff member earned less than half of what they would normally make (or earns on average) in a week.

A week of layoff does not consist of any week in which the staff member did not work for several days because the staff member was unable or offered to work, was subject to disciplinary suspension, or was not supplied with work due to the fact that of a strike or lockout at their location of work or somewhere else.

Employers are not needed under the ESA to supply staff members with a written notice of a momentary layoff, nor do they have to provide a reason for the lay-off. (They may, nevertheless, be needed to do these things under a collective contract or an employment agreement.)

Under the ESA, a "temporary layoff" can last:

1. not more than 13 weeks of layoff in any duration of 20 successive weeks;
or

2. more than 13 weeks in any period of 20 consecutive weeks, however less than 35 weeks of layoff in any duration of 52 consecutive weeks, where:- the worker continues to get considerable payments from the company;
or

- the employer continues to make payments for the advantage of the worker under a legitimate group or worker insurance coverage strategy (such as a medical or drug insurance coverage strategy) or a genuine retirement or employment pension;
or

- the employee gets extra welfare;
or

- the worker would be entitled to get supplemental welfare however isn't getting them since they are utilized somewhere else;
or

- the employer remembers the worker to work within the time frame authorized by the Director of Employment Standards;
or

- the employer remembers the worker within the time frame set out in a contract with a staff member who is not represented by a trade union;
or

3. a layoff longer than a layoff explained in 'B' where the company recalls a worker who is represented by a trade union within the time set out in an agreement in between the union and the employer.


If a worker is laid off for a period longer than a temporary layoff as set out above, the employer is thought about to have actually ended the employee's work. Generally, the employee will then be entitled to termination pay.

Written notice of termination and termination pay

Under the ESA, a company can terminate the work of an employee who has been employed constantly for three months or more if either:

- the employer has provided the staff member proper written notification of termination and the notification duration has actually expired

- the employer pays termination pay to the employee where no written notice or less notice than is required is provided


Written notification of termination

A staff member is entitled to notice of termination (or termination pay rather of notification) if they have been continually used for a minimum of 3 months. An individual is considered "used" not only while they are actively working, however also during at any time in which they are not working however the employment relationship still exists (for instance, time in which the employee is off sick or on leave or on lay-off).

The quantity of notice to which an employee is entitled depends on their "period of employment". An employee's period of work includes not just perpetuity while the employee is actively working however likewise at any time that they are not working but the employment relationship still exists, with the following exceptions:

- if a lay-off goes on longer than a momentary lay-off, the staff member's employment is considered (or considered) to have actually been ended on the very first day of the lay-off-any time after that does not count as part of the staff member's period of work, even though the staff member might still be used for functions of the "constantly used for three months" credentials

- if 2 different durations of work are separated by more than 13 weeks, employment just the most current period counts for functions of notice of termination


It is possible, in some scenarios, for an individual to have been "constantly employed" for three months or more and yet have a period of employment of less than 3 months. In such situations, the staff member would be entitled to notice due to the fact that an employee who has actually been constantly utilized for at least 3 months is entitled to discover, and the minimum notice entitlement of one week applies to a worker with a duration of employment of any length less than one year.

The following chart defines the amount of notification needed:

Note: Special rules identify the quantity of notification required in the case of mass terminations - where the work of 50 or more staff members is terminated at a company's facility within a four-week duration.

Requirements during the statutory notice duration

During the statutory notification period, an employer must:

- not decrease the staff member's wage rate or alter any other term or condition of work;

- continue to make whatever contributions would be needed to keep the employee's advantages strategies; and

- pay the employee the salaries they are entitled to, which can not be less than the staff member's routine earnings for a routine work week every week.


Regular rate

This is a staff member's rate of pay for each non-overtime hour of operate in the staff member's work week.

Regular wages

These are earnings aside from overtime pay, trip pay, public vacation pay, premium pay, domestic or sexual violence leave pay, termination of project pay, termination pay and severance pay and specific legal privileges.

Regular work week

For a staff member who normally works the same number of hours each week, a routine work week is a week of that many hours, not consisting of overtime hours.

Some employees do not have a regular work week. That is, they do not work the very same variety of hours every week or they are paid on a basis besides time. For these staff members, the "routine earnings" for a "regular work week" is the typical amount of the regular incomes made by the staff member in the weeks in which the staff member worked throughout the duration of 12 weeks immediately preceding the date the notice was provided.

A company is not enabled to schedule an employee's vacation time throughout the statutory notice period unless the employee-after getting written notification of termination of employment-agrees to take their vacation time during the notification duration.

If an employer offers longer notification than is needed, the statutory part of the notice duration is the tail end of the period that ends on the date of termination.

How to offer written notice

For the most part, written notification of termination of work should be dealt with to the worker. It can be supplied in individual or by mail, fax or e-mail, as long as delivery can be confirmed.

There are special guidelines for supplying notification of termination if a staff member has a contract of work or a collective agreement that offers seniority rights that allow a staff member who is to be laid off or whose work is to be ended to displace (" bump") other workers.

Because case, the company must post a notice in the work environment (where it will be seen by the employees) setting out the names, seniority and task category of those staff members the company intends to terminate and employment the date of the proposed termination. The publishing of the notice is considered to be notification of termination, as of the date of the publishing, to a staff member who is "bumped" by an employee called in the notification. However, this notice of termination need to still meet the length requirements set out in the ESA.

There are also unique rules regarding how notification is offered when there is a mass termination.

Termination pay

A staff member who does not get the written notification needed under the ESA needs to be given termination pay in lieu of notice. Termination pay is a lump sum payment equal to the routine wages for a routine work week that a staff member would otherwise have been entitled to during the written notification duration. An employee earns trip pay on their termination pay. Employers need to also continue to make whatever contributions would be needed to maintain the advantages the staff member would have been entitled to had they continued to be employed through the notice duration.

Example: Regular work week

Sarah has actually worked for three and a half years. Now her task has actually been eliminated and her employment has been terminated. Sarah was not given any composed notice of termination.

Sarah worked 40 hours a week each week and was paid $20.00 an hour. She also got four per cent holiday pay. Because she worked for more than three years but less than four years, she is entitled to three weeks' pay in lieu of notification.

Sarah's routine salaries for a routine work week are computed:

$ 20.00 an hour X 40 hours a week = $800.00 a week

Her termination pay is computed:

$ 800.00 X 3 weeks = $2,400.00

Then her trip pay on her termination pay is calculated:

4% of $2,400.00 = $96.00

Finally, her vacation pay is added to her termination pay:

$ 2400.00 + $96.00 = $2,496.00

Result: Sarah is entitled to $2,496.00. The employer must also make sure continued protection for any benefit or pension plans that used to her for 3 weeks.

Example: No regular work week

Gerry has actually operated at a nursing home for 4 years. He works each week, however his hours vary from week to week. His rate of pay is $25.00 an hour, and he is paid 6 percent trip pay.

Gerry's company removed his position and did not give Gerry any composed notification of termination. Gerry was ill and off work for 2 of the 12 weeks instantly preceding the day his work was ended. Gerry earned $1,800.00 in the 12 weeks before the day on which his work ended.

Gerry is entitled to four weeks of termination pay.

Gerry's average profits weekly are determined:

$ 1,800.00 for 12 weeks/ 10 weeks (Gerry was off sick for two weeks for that reason these weeks are not consisted of in the estimation of typical profits) = $180.00 a week

His termination pay is determined:

$ 180.00 × 4 weeks = $720.00

Then his vacation pay on his termination pay is computed:

6% of $720.00 = $43.20

Finally, his trip pay is contributed to his termination pay:

$ 720.00 + $43.20 = $763.20

Result: Gerry is entitled to $763.20. The employer needs to likewise make sure continued protection for any advantage or pension that applied to him for 4 weeks.

When to pay termination pay

Termination pay must be paid to a worker either seven days after the staff member's employment is ended or on the staff member's next routine pay date, whichever is later on.

Mass termination

Special rules for notification of termination might apply in cases of mass termination (when an employer is terminating 50 or more staff members at its establishment within a four-week duration).

Meaning of "establishment"

An "establishment" is an area at which the company continues organization. Separate locations can be thought about one facility if either:

- they lie within the same town, or

- a worker at one location has legal seniority rights that encompass the other location, permitting the employee to displace another worker (also called "bumping rights").


Effective October 26, 2023, in cases of mass termination, the term "establishment" includes a staff member's home, but only if the employee works from home and does not work at any other location where the company continues organization.

This will need that workers who work specifically from another location be considered for inclusion in the count when determining whether 50 or more workers have been ended.

Note that where a staff member carries out work both from their home and from another location where the employer continues organization (for instance, an office), their home is not included in the definition of "establishment". Instead, the staff member is thought about to have a connection to the workplace location and, therefore, for the function of mass termination, the employee is consisted of with regard to that workplace place.

Example: where multiple locations are thought about one "facility"

ABC Company has a workplace and a storage facility situated in London, ON. Sabrina resides in London and works for ABC Company solely from another location: she carries out work for the company from home and does not operate at the office.

For the function of mass termination, the company's London office, London storage facility and Sabrina's London home are considered one "establishment."

Employer commitments in a mass termination

When a mass termination happens, the employer needs to finish and deliver the Form 1 (Notice of termination of work) to the Director of Employment Standards (Director) by:

- email to esa_form1_notice@ontario.ca.

- fax to (416) 326-7061.

- individual delivery to the Director's office on a day and at a time when it is open.

- mail delivery to the Director's office, if the delivery can be confirmed.


The workplace of the Director of Employment Standards is located on the 9th flooring, 400 University Avenue, Toronto ON M7A 1T7.

Any notification to the impacted staff members is ruled out to have actually been provided till the Form 1 is gotten by the Director; in other words, notice of mass termination is ineffective until the Director gets the Form 1.

In addition to offering staff members with individual notifications of termination, the employer must, on the first day of the notification period:

- post a copy of the Form 1 provided to the Director in the workplace where it will come to the attention of the affected staff members.

- provide a copy of the Form 1 to each affected worker.


The quantity of notification staff members must receive in a mass termination is not based upon the workers' length of employment, however on the number of staff members who have been terminated. An employer needs to provide:

- 8 weeks see if the work of 50 to 199 workers is to be ended

- 12 weeks notice if the work of 200 to 499 workers is to be ended

- 16 weeks discover if the work of 500 or more workers is to be ended


Exception to the mass termination guidelines

The mass termination rules do not apply if these two things use:

- the variety of employees whose employment is being terminated represents not more than 10 percent of the workers who have actually been utilized for at least three months at the facility

- none of the terminations are caused by the permanent discontinuance of all or part of the employer's organization at the facility


Mass termination: resignation by a staff member

A worker who has actually gotten termination notice under the mass termination guidelines who wants to resign before the termination date provided in the employer's notification should provide the company at least one week's composed notice of resignation if the staff member has been utilized for less than two years. If the work duration has been two years or more, the worker must offer a minimum of two weeks' composed notice of resignation. However, the worker does not need to provide notification of resignation if the company constructively dismisses the employee or breaches a term of the agreement.

Temporary work after termination date in notification

A company can supply work to a staff member who has actually been notified of termination on a short-term basis in the 13-week duration after the termination date set out in the notice without impacting the original date of the termination and without being needed to supply any more notification of termination to the employee when the short-term work ends.

If a staff member works beyond the 13-week duration after the termination date and then has their employment ended, the worker will be entitled to a brand-new written notice of termination as if the previous notification had actually never been offered. The worker's period of employment will then likewise include the duration of short-term work.

Recall rights

A "recall right" is the right of an employee on a layoff to be called back to work by their company under a term or condition of employment. This right is typically discovered in collective agreements.

A staff member who has recall rights and who is entitled to termination pay since of a layoff of 35 weeks or more may pick to:

- keep their recall rights and not be paid termination pay (or employment severance pay, if they were entitled to severance pay) at that time;
or

- give up their recall rights and receive termination pay (and employment discontinuance wage, if they were entitled to severance pay).


If a worker is entitled to both termination pay and discontinuance wage, they must make the exact same choice for both.

If an employee who is not represented by a trade union chooses to keep their recall rights or fails to choose, the company should send out the amount of the termination pay (and discontinuance wage, if any) to the Director of Employment Standards, who holds the cash in trust.

If a worker who is represented by a trade union chooses to keep their recall rights or stops working to make a choice, the employer and the trade union should try to come to an arrangement to hold the termination pay (and severance pay, if any) in trust for the staff member. If they can not concern an arrangement, and the trade union recommends the company and the Director of Employment Standards in composing that efforts have stopped working, employment the company must send out the termination pay (and discontinuance wage, if any) to the Director of Employment Standards, who holds the money in trust.

If a worker chooses to offer up their recall rights or if the recall rights end, the money that is kept in trust needs to be sent to the staff member.

If the worker accepts a recall back to work, the money that is held in trust will be gone back to the employer.

Exemptions to notice of termination or termination pay

Many of these exemptions are complex. Please contact the Employment Standards Information Centre, 1-800-531-5551, if you need more details. Please also refer to the unique guideline tool.

The notification of termination and termination pay requirements of the ESA do not use to an employee who:

- is guilty of wilful misbehavior, employment disobedience or wilful overlook of duty that is not trivial and has not been excused by the company. Note: "wilful" includes when a staff member planned the resulting effect or acted recklessly if they understood or need to have understood the impacts their conduct would have. Poor work conduct that is accidental or unintended is normally not considered wilful;

- was worked with for a particular length of time or up until the completion of a specific job. However, such a worker will be entitled to observe of termination or termination pay if:- the work ends before the term ends or the task is finished; or

- the term expires or the task is not completed more than 12 months after the employment began; or

- the work continues for 3 months or more after the term ends or the task is completed;

See also: Employment Standards Self-Service Tool

Wrongful dismissal

Rights greater than ESA notice of termination, termination pay, discontinuance wage

The guidelines under the ESA about termination and severance of employment are minimum requirements. Some staff members may have rights under the common law that are greater than the rights to notice of termination (or termination pay) and discontinuance wage under the ESA. A worker might wish to sue their previous employer in court for "wrongful dismissal". Employees ought to be conscious that they can not sue a company for wrongful dismissal and sue for termination pay or discontinuance wage with the ministry for the same termination or severance of work. A staff member needs to choose one or the other. Employees may wish to acquire legal advice worrying their rights.

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