Can You Sue for Wrongful Dismissal in Ontario? Insights From a Toronto Employment Lawyer 

Being offered a severance package does not necessarily mean your employer has met its legal obligations. You may be entitled to more than the amount offered in your termination letter. 

But does that mean you should sue? The answer depends on your contract, potential compensation and the practical costs of pursuing a claim. Below, we answer the questions employees should ask before making the decision. 

Q: When Can an Employee Sue For a Wrongful Dismissal in Ontario? 

A: Generally, a non-unionized employee can bring a claim if their employer dismisses them without providing the notice or compensation they are legally owed. This can also apply when an employer claims the dismissal was ‘for cause’ but cannot justify withholding those entitlements. 

An employer can usually terminate employment without cause if it meets its legal obligations. However, the minimum termination pay and statutory severance pay available under the Employment Standards Act, 2000 may not reflect everything you are owed. 

Unless an enforceable employment contract limits your entitlements, you may also have a right to common law reasonable notice. This is assessed individually based on factors such as your age, length of service, position and availability of comparable employment. It can provide substantially more compensation than the statutory minimums. 

Compensation for that notice period may include salary, benefits, bonuses, commissions, pension contributions and long-term incentives you would have received had proper notice been given. Use our free Severance Pay Calculator to get an initial estimate of the compensation you may be owed. 

Unionized employees generally pursue dismissal disputes through their union’s grievance process. 

Q: What Would a Toronto Employment Lawyer Review First? 

A: We would review your employment agreement, termination letter, severance offer and compensation records. Your age, service, responsibilities and prospects of finding comparable work also matter. 

An enforceable termination clause can limit your entitlements. If the clause is unenforceable, common law notice may apply. There is no standard “one month per year” formula. 

We would also take a look at bonus, commission and long-term incentive plan documents to determine whether you are owed compensation beyond your base salary. For managers and executives, these can materially affect the claim’s value. 

Q: What Does the Process Involve for Wrongful Dismissal in Ontario? 

A: A lawsuit is not always the first step. After assessing your entitlements, we typically seek a better offer from your employer through severance negotiations. 

If negotiation does not resolve the dispute, the next step may be filing and serving a court claim. Depending on the procedure, the parties exchange documents, answer questions and attend mediation or settlement discussions. An unresolved case may proceed to a motion or trial. 

For example, in Kondaj v. Crossbridge Condominium Services Ltd., our client lost his job after a new building services provider took over. Neither company paid his common law notice entitlements, each arguing the other was responsible. 

We obtained a judgment without a full trial, awarding Mr. Kondaj $78,925 based on 10 months’ notice, plus compensation for lost benefits. The Ontario Court of Appeal upheld the judgment. While every case turns on its own facts, this illustrates how court proceedings can resolve disputes that remain unsettled. 

Q: How Much Does It Cost? 

A: Costs depend on the fee arrangement, disputed issues and how far the case proceeds. Ask about legal fees, HST, filing fees, mediation expenses and other disbursements. 

At Lecker & Associates, we offer recovery-based billing in many cases, with fees calculated as a percentage of the settlement. We explain the applicable fees and services in a written agreement before you engage us. 

Q: How Long Does a Claim Take? 

A: The timeline depends on whether your claim is resolved through negotiation or requires court proceedings. A settlement may be reached within weeks or months. If the case proceeds through court, it can take a year or longer, depending on the issues involved and court scheduling. 

In Ontario, you generally have two years to start a wrongful dismissal lawsuit, usually from the moment you are told your employment is ending. Negotiating with your employer does not automatically extend that deadline. Speak with a lawyer to confirm your deadline. 

Q: What Compensation Can I Realistically Recover? 

A: You may be entitled to compensation for salary, benefits, bonuses, commissions and other payments you would have received during the notice period your employer should have provided. The amount depends on your employment contract, compensation plans and individual circumstances. 

You generally need to make reasonable efforts to find comparable work. Income from a new job during that notice period may reduce the compensation owed. 

In some cases, an employer’s conduct during the dismissal may justify additional compensation. However, this requires supporting evidence. 

Q: Is It Worth Suing For a Wrongful Dismissal in Ontario? 

A: Whether suing is worth it depends on how much more compensation you could receive, the strength of your case, and the costs and time involved. A Toronto employment lawyer can help you weigh these factors and decide whether to negotiate further, accept a settlement or pursue your claim in court. 

Before signing a release, contact Lecker & Associates for a no-charge initial assessment. 

Disclaimer: This article provides general information and is not legal advice. 

How Lecker & Associates Can Help

Lecker & Associates advises employees across Ontario on termination packages, wrongful dismissal claims, fixed-term contract disputes, and severance negotiations. If your fixed-term contract ended before the agreed end date, early legal review can help determine whether the employer had the right to end the contract, whether the termination clause is enforceable, and whether the offer reflects the full value of the remaining term. Our team of Toronto employment lawyers can be reached at 416-223-5391 or intake@leckerslaw.com for a confidential consultation.

FAQs: Wrongful Dismissal

How much can you sue for wrongful dismissal in Ontario?

The amount depends on your contract, age, years of service, position and prospects of finding comparable work. Compensation may include salary, benefits, bonuses and commissions. 

How do you win a wrongful dismissal case?

You need evidence that your employer failed to provide the notice or compensation you were owed. Keep your contract, termination letter, pay records and job-search records. A Toronto employment lawyer can assess your case and explain your options. 

How do you prove a dismissal was unfair?

For wrongful dismissal, you generally need to show that you did not receive your full legal entitlements, not that the decision to dismiss you was unfair. Your employment contract, termination letter and compensation records are key evidence. 

What is the average payout for unfair dismissal?

There is no single average that reliably reflects what you may be owed. Each claim depends on the employee’s circumstances and contract. Use our free Severance Pay Calculator for an initial estimate.