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A variety of expressions are commonly utilized to describe situations when employment is ended. These include "release," "released," "dismissed," "fired" and "completely laid off."

Under the Employment Standards Act, 2000 (ESA) a person's employment is terminated if the employer:

- dismisses or stops using an employee, including where a worker is no longer used due to the personal bankruptcy or insolvency of the employer;
- "constructively" dismisses an employee and the staff member resigns, in response, within a reasonable time;
- lays a staff member off for a duration that is longer than a "momentary layoff".
In a lot of cases, when an employer ends the employment of a worker who has been continuously employed for 3 months, the company needs to supply the worker with either composed notification of termination, termination pay or a mix (as long as the notification and the variety of weeks of termination pay together equivalent the length of notification the worker is entitled to get).

The ESA does not need a company to give an employee a reason their employment is being ended. There are, nevertheless, some circumstances where a company can not end a worker's employment even if the company is prepared to provide appropriate composed notice or termination pay. For instance, a company can not end somebody's work, or penalize them in any other method, if any part of the reason for the termination of employment is based on the employee asking questions about the ESA or exercising a right under the ESA, such as declining to work in excess of the day-to-day 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 notice 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 misconduct, disobedience, or wilful neglect of responsibility that is not minor and has actually not been excused by the company. Other examples include building and construction workers, workers on short-term layoff, workers who decline a deal of reasonable alternative employment and workers who have actually been utilized less than three months.

There are a number of other exemptions to the termination of employment arrangements of the ESA. See "Exemptions to discover of termination or termination pay." Please also refer to the unique guideline tool.

The termination-of-employment guidelines are totally separate from any privileges a worker may have to be paid severance pay under the ESA.

Constructive termination

A positive termination might occur when an employer makes a substantial modification to a basic term or condition of an employee's work without the worker's real or implied permission.

For instance, an employee may be constructively dismissed if the company makes changes to the worker's terms of work that result in a substantial decrease in salary or a considerable unfavorable change in such things as the employee's work area, hours of work, authority, or position. Constructive dismissal may also consist of situations where an employer pesters or abuses a worker, or an employer provides a worker a demand to "quit or be fired" and the employee resigns in action.

The staff member would have to resign in response to the modification within an affordable amount of time in order for the company's actions to be considered a termination of employment for purposes of the ESA.

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

Temporary layoff

A worker is on momentary layoff when a company cuts down or stops the staff member's work without ending their employment (for example, laying someone off sometimes when there is not adequate work to do). The simple truth that the employer does not define a recall date when laying the employee off does not necessarily indicate that the lay-off is not short-lived. Note, nevertheless, that a lay-off, even if meant to be short-term, may result in positive dismissal if it is not permitted 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 earn (or earns typically) in a week.

A week of layoff does not include any week in which the worker did not work for several days since the employee was unable or offered to work, went through disciplinary suspension, or was not supplied with work since of a strike or lockout at their location of employment or in other places.

Employers are not needed under the ESA to offer employees with a written notification of a short-lived layoff, employment nor do they have to supply a reason for the lay-off. (They may, however, be required to do these things under a collective arrangement or an employment agreement.)

Under the ESA, a "short-term layoff" can last:

1. not more than 13 weeks of layoff in any period of 20 successive weeks; or
2. more than 13 weeks in any duration of 20 successive weeks, however less than 35 weeks of layoff in any period of 52 consecutive weeks, where:- the staff member continues to get considerable payments from the employer; or
- the employer continues to pay for the benefit of the staff member under a legitimate group or worker insurance plan (such as a medical or drug insurance coverage plan) or a genuine retirement or pension strategy; or
- the worker receives supplemental welfare; or
- the worker would be entitled to receive extra welfare but isn't receiving them since they are utilized in other places; or
- the employer recalls the employee 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 an arrangement with a worker who is not represented by a trade union; or



3. a layoff longer than a layoff explained in 'B' where the employer remembers a worker who is represented by a trade union within the time set out in a contract between the union and the company.
If an employee is laid off for a duration longer than a temporary layoff as set out above, the company is thought about to have terminated the worker's employment. Generally, the staff member will then be entitled to termination pay.

Written notification of termination and termination pay

Under the ESA, an employer can terminate the work of a staff member who has been utilized continually for 3 months or more if either:

- the company has actually given the worker proper composed notification of termination and the notification period has actually expired
- the company pays termination pay to the staff member where no composed notification or less notification than is needed is offered
Written notification of termination

A staff member is entitled to observe of termination (or termination pay rather of notification) if they have been constantly utilized for a minimum of three months. A person is thought about "utilized" not only while they are actively working, but also during at any time in which they are not working but the employment relationship still exists (for example, time in which the staff member is off ill or on leave or on lay-off).

The amount of notification to which a worker is entitled depends on their "period of work". A staff member's period of employment includes not only perpetuity while the staff member 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 temporary lay-off, the employee's employment is considered (or considered) to have been terminated on the first day of the lay-off-any time after that does not count as part of the worker's duration of work, even though the employee may still be used for purposes of the "continuously utilized for 3 months" credentials
- if two separate durations of employment are separated by more than 13 weeks, just the most current duration counts for functions of notice of termination
It is possible, in some circumstances, for an individual to have actually been "continually utilized" for three months or more and yet have a duration of work of less than 3 months. In such scenarios, the employee would be entitled to notice since a staff member who has been continually utilized for at least three months is entitled to notice, 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 figure out the quantity of notice needed when it comes to mass terminations - where the work of 50 or more staff members is terminated at an employer's establishment within a four-week period.

Requirements throughout the statutory notification period

During the statutory notification duration, a company should:

- not decrease the worker's wage rate or change any other term or condition of work;
- continue to make whatever contributions would be needed to maintain the worker's advantages strategies; and
- pay the employee the salaries they are entitled to, which can not be less than the worker's regular earnings for a regular work week every week.
Regular rate

This is a worker's rate of spend for each non-overtime hour of work in the worker's work week.

Regular earnings

These are wages besides overtime pay, holiday pay, public holiday pay, premium pay, domestic or sexual violence leave pay, termination of project pay, termination pay and severance pay and particular legal privileges.

Regular work week

For a worker who usually works the very same variety of hours every week, a routine work week is a week of that numerous hours, not consisting of overtime hours.

Some staff members do not have a routine work week. That is, they do not work the exact same variety of hours each week or they are paid on a basis aside from time. For these workers, the "routine wages" for a "routine work week" is the average amount of the regular wages made by the staff member in the weeks in which the worker worked during the period of 12 weeks instantly preceding the date the notification was provided.

An employer is not enabled to arrange an employee's trip time during the statutory notification period unless the employee-after receiving written notice of termination of employment-agrees to take their vacation time during the notice period.

If a company supplies 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 supply written notification

In the majority of cases, composed notification of termination of work should be dealt with to the worker. It can be supplied personally or by mail, fax or email, as long as delivery can be confirmed.

There are special rules for providing notification of termination if a staff member has an agreement of employment or a cumulative arrangement that supplies seniority rights that allow a worker who is to be laid off or whose work is to be terminated to displace (" bump") other employees.

In that case, the company should post a notice in the workplace (where it will be seen by the staff members) setting out the names, seniority and task classification of those workers the company intends to terminate and the date of the proposed termination. The posting of the notice is considered to be notification of termination, since the date of the publishing, to an employee who is "bumped" by a worker called in the notification. However, this notification of termination must still meet the length requirements set out in the ESA.

There are likewise special guidelines regarding how notice is offered when there is a mass termination.

Termination pay

A staff member who does not receive the written notice required under the ESA should be offered termination pay in lieu of notice. Termination pay is a lump sum payment equal to the routine salaries for a regular work week that an employee would otherwise have been entitled to throughout the composed notice period. A staff member makes vacation pay on their termination pay. Employers need to also continue to make whatever contributions would be required to preserve the advantages the employee would have been entitled to had they continued to be employed through the notice duration.

Example: Regular work week

Sarah has worked for 3 and a half years. Now her task has actually been gotten rid of and her employment has actually been terminated. Sarah was not provided any composed notification of termination.

Sarah worked 40 hours a week each week and was paid $20.00 an hour. She likewise got four percent vacation pay. Because she worked for more than three years but less than 4 years, she is entitled to 3 weeks' pay in lieu of notice.

Sarah's regular earnings for a regular work week are calculated:

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


Her termination pay is determined:

$ 800.00 X 3 weeks = $2,400.00


Then her trip pay on her termination pay is computed:

4% of $2,400.00 = $96.00


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

$ 2400.00 + $96.00 = $2,496.00


Result: Sarah is entitled to $2,496.00. The employer should likewise guarantee continued protection for any advantage or pension plans that applied to her for three weeks.

Example: No regular work week

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

Gerry's employer removed his position and did not provide Gerry any composed notice of termination. Gerry was ill and off work for 2 of the 12 weeks right away preceding the day his work was ended. Gerry earned $1,800.00 in the 12 weeks before the day on which his employment ended.

Gerry is entitled to 4 weeks of termination pay.

Gerry's average earnings weekly are computed:

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


His termination pay is calculated:

$ 180.00 × 4 weeks = $720.00


Then his vacation pay on his termination pay is calculated:

6% of $720.00 = $43.20


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

$ 720.00 + $43.20 = $763.20


Result: Gerry is entitled to $763.20. The company must likewise ensure continued protection for any benefit or pension that used to him for 4 weeks.

When to pay termination pay

Termination pay need to be paid to an either seven days after the staff member's work is ended or on the employee's next regular pay date, whichever is later.

Mass termination

Special rules for notification of termination may apply in cases of mass termination (when an employer is ending 50 or more employees at its establishment within a four-week period).

Meaning of "facility"

An "establishment" is a location at which the company carries on organization. Separate places can be thought about one establishment if either:

- they lie within the very same town, or
- a worker at one area has legal seniority rights that reach the other area, enabling the worker to displace another employee (also called "bumping rights").
Effective October 26, 2023, in cases of mass termination, the term "establishment" includes a worker's home, but only if the employee works from home and does not operate at any other area where the company brings on business.

This will need that staff members who work exclusively from another location be thought about for inclusion in the count when identifying whether 50 or more workers have actually been terminated.

Note that where an employee performs work both from their home and from another location where the company continues service (for instance, a workplace), their home is not consisted of in the meaning of "facility". Instead, the worker is thought about to have a connection to the office location and, for that reason, for the purpose of mass termination, the staff member is consisted of with regard to that workplace place.

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

ABC Company has a workplace and a storage facility located in London, ON. Sabrina resides in London and works for ABC Company solely remotely: she carries out work for the business from home and does not operate at the workplace.

For the purpose of mass termination, employment the business's London office, London warehouse and Sabrina's London home are thought about one "establishment."

Employer obligations in a mass termination

When a mass termination takes place, the employer should finish and provide the Form 1 (Notice of termination of employment) 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 workplace on a day and at a time when it is open.
- mail shipment to the Director's office, if the shipment can be validated.
The workplace of the Director of Employment Standards is found on the 9th floor, 400 University Avenue, Toronto ON M7A 1T7.

Any notification to the affected workers is not considered to have actually been offered up until the Form 1 is gotten by the Director; in other words, notice of mass termination is ineffective till the Director receives the Form 1.

In addition to providing employees with specific notifications of termination, the employer must, on the very first day of the notice duration:

- publish a copy of the Form 1 offered to the Director in the work environment where it will concern the attention of the impacted employees.
- supply a copy of the Form 1 to each affected employee.
The amount of notification employees need to receive in a mass termination is not based on the workers' length of employment, however on the variety of workers who have been ended. An employer must provide:

- 8 weeks see if the employment of 50 to 199 employees is to be ended
- 12 weeks observe if the employment of 200 to 499 employees is to be ended
- 16 weeks notice if the employment of 500 or more staff members is to be ended
Exception to the mass termination rules

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

- the number of workers whose work is being terminated represents not more than 10 percent of the employees who have actually been utilized for at least three months at the facility
- none of the terminations are caused by the long-term discontinuance of all or part of the employer's organization at the establishment
Mass termination: resignation by a worker

An employee who has actually received termination notification under the mass termination guidelines who wishes to resign before the termination date supplied in the company's notification should give the employer a minimum of one week's written notification of resignation if the worker has been employed for less than two years. If the work duration has actually been 2 years or more, the employee must offer a minimum of 2 weeks' written notice of resignation. However, the staff member does not need to give notice of resignation if the company constructively dismisses the worker or breaches a term of the contract.

Temporary work after termination date in notification

An employer can provide work to a worker who has been notified of termination on a temporary basis in the 13-week period after the termination date set out in the notice without impacting the initial date of the termination and without being needed to offer any further notice of termination to the employee when the momentary work ends.

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

Recall rights

A "recall right" is the right of a worker on a layoff to be recalled to work by their company under a term or condition of work. This right is commonly discovered in cumulative arrangements.

A staff member who has recall rights and who is entitled to termination pay due to the fact that of a layoff of 35 weeks or more might choose to:

- keep their recall rights and not be paid termination pay (or severance pay, if they were entitled to severance pay) at that time; or
- quit their recall rights and receive termination pay (and discontinuance wage, if they were entitled to severance pay).
If a staff member is entitled to both termination pay and discontinuance wage, they should make the exact same choice for both.

If an employee who is not represented by a trade union elects to keep their recall rights or stops working to make an option, the employer must send the amount of the termination pay (and severance pay, if any) to the Director of Employment Standards, who holds the cash in trust.

If a staff member who is represented by a trade union chooses to keep their recall rights or stops working to make an option, the company and the trade union need to try to come to a plan to hold the termination pay (and severance pay, if any) in trust for the worker. 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 failed, the employer should send the termination pay (and discontinuance wage, if any) to the Director of Employment Standards, who holds the money in trust.

If an employee picks to quit their recall rights or if the recall rights expire, the cash that is held in trust needs to be sent out to the employee.

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

Exemptions to notice of termination or termination pay

Much of these exemptions are complicated. Please call the Employment Standards Information Centre, 1-800-531-5551, if you need more info. Please also refer to the special rule tool.

The notification of termination and termination pay requirements of the ESA do not apply to a worker who:

- is guilty of wilful misbehavior, disobedience or wilful neglect of duty that is not unimportant and has not been condoned by the employer. Note: "wilful" includes when a staff member planned the resulting effect or acted recklessly if they knew or should have known the effects their conduct would have. Poor work conduct that is unintentional or unintentional is normally not considered wilful;
- was hired for a particular length of time or till the completion of a specific task. However, such a worker will be entitled to see of termination or termination pay if:- the work ends before the term ends or the job is finished; or
- the term expires or the task is not finished more than 12 months after the employment began; or
- the work continues for 3 months or more after the term ends or the job is finished;


See also: Employment Standards Self-Service Tool

Wrongful termination

Rights higher than ESA notice of termination, termination pay, severance pay

The rules under the ESA about termination and severance of employment are minimum requirements. Some staff members may have rights under the common law that are higher than the rights to observe of termination (or termination pay) and severance pay under the ESA. An employee may wish to sue their former employer in court for "wrongful termination". Employees ought to understand that they can not sue an employer for wrongful termination and sue for termination pay or severance pay with the ministry for the exact same termination or severance of employment. A worker should choose one or the other. Employees might want to obtain legal suggestions concerning their rights.