Wrongful Dismissal Lawyer Toronto: Your Guide to Fair Severance

Losing your job is a tough pill to swallow. But when the way you’re let go feels wrong, you don’t just need a shoulder to lean on—you need a wrongful dismissal lawyer in Toronto. An experienced lawyer knows a crucial secret of Ontario employment law: it’s rarely about why you were fired, but almost always about how. That first severance offer is almost never the best one, and getting expert legal advice is the first real step toward securing your financial footing.

What Is Wrongful Dismissal in Toronto

It’s easy to feel disoriented when you suddenly lose your job. Most people assume “wrongful dismissal” means you were fired for a reason that was unfair or untrue. In Ontario, however, the legal definition is much more straightforward. It’s less about the reason for your termination and more about the process.

Your employer can let you go for almost any reason, as long as it’s not discriminatory. But unless they have “just cause”—a very high legal bar reserved for serious misconduct like theft, fraud, or serious insubordination—they owe you something. They must give you advance working notice of your last day, or a payment to cover that notice period.

Wrongful dismissal is what happens when an employer terminates you without providing enough notice or pay in lieu of notice. It’s fundamentally a breach of your employment contract, whether that contract was written down or simply implied by your working relationship.

This is the exact spot where many employers try to cut corners. They’ll often offer only the bare minimum required by Ontario’s Employment Standards Act (ESA), hoping you don’t know the difference.

ESA Minimums vs. Common Law Entitlements

Think of termination pay as having two different layers of protection.

• The Employment Standards Act (ESA): This is the rock-bottom minimum your employer is legally required to provide. It acts as a basic safety net, offering a small amount of notice (or pay) based on how long you worked there—roughly one week per year of service, up to a cap. It’s the floor, not the ceiling.

• Common Law: This is where your true entitlements lie. Developed over decades by judges, common law notice is what courts have determined is fair. It’s almost always a much larger amount than the ESA minimums because it takes a bigger picture into account: your age, how long you were with the company, the seniority of your role, and how hard it will be to find a similar job.

Most initial severance packages are built around just the ESA minimums. If you sign off on that without talking to a lawyer, you are very likely walking away from a significant amount of money you are rightfully owed.

To see just how big the gap can be, let’s compare the two.

ESA Minimums vs Common Law Notice A Quick Comparison

This table shows the stark difference between the minimum notice required by the Employment Standards Act (ESA) and the potential entitlements under common law, which a lawyer can help you secure.

Years of Service	ESA Minimum Notice	Typical Common Law Notice (Rule of Thumb)
1 Year	1 Week	2-4 Months
3 Years	3 Weeks	4-6 Months
5 Years	5 Weeks	6-9 Months
10 Years	8 Weeks	10-15 Months
20+ Years	8 Weeks	18-24 Months

As you can see, accepting the ESA minimum could mean missing out on months, or even years, of salary. The common law is designed to give you a real financial bridge to your next job, not just a week or two of pay.

The legal landscape in Toronto proves this point. Wrongful dismissal claims have seen a notable surge, with a 27% rise over the past year alone. While typical settlements across Canada can range from $5,000 to $90,000, Ontario’s robust common law principles often result in much higher awards.

Take the case of Paquette v. TeraGo Networks Inc., where a Toronto court awarded a long-term employee 17 months’ pay instead of notice, which came to $163,267.90. That’s an amount wildly beyond what the ESA would have ever provided. You can explore more about wrongful termination settlements and their calculations to get a better sense of these differences. This is why having a wrongful dismissal lawyer in Toronto review your situation isn’t just a good idea—it’s absolutely essential for protecting your rights.

Calculating a Fair Severance Package in Ontario

So, what does a fair severance package actually look like in Ontario? Let’s clear up some of the confusion. It’s not just a final paycheque. Think of it more like a financial bridge, carefully constructed to support you while you transition to your next role. A proper package is built on much more than just your base salary.

To get the calculation right, we have to look at your total compensation. That means factoring in any bonuses you consistently received, commissions you would have earned during your notice period, and the cash value of your benefits. Losing your health, dental, and life insurance coverage is a real financial hit, and that value has to be included in any fair offer.

The Four Pillars of Common Law Notice

The core of any severance calculation comes down to figuring out the “reasonable notice period.” This is the length of that financial bridge you’re owed. There isn’t a simple, one-size-fits-all formula. Instead, Ontario courts look at a set of principles that have been shaped over decades, often called the Bardal factors.

These four pillars are weighed to determine what’s fair in your unique situation:

1. Your Age: The courts get it—older workers often have a tougher time finding new employment. An employee getting closer to retirement will almost always be entitled to a longer notice period.

2. Your Years of Service: Loyalty matters. The longer you’ve dedicated yourself to a company, the longer the notice period you’re generally owed. It’s a recognition of your commitment.

3. The Nature of Your Role: Your seniority and how specialized your job was are huge factors. An executive or a highly skilled professional in a niche industry will likely have a much harder time finding a similar job compared to someone in a more general, entry-level position.

4. The Local Job Market: This is about real-world conditions. How easy is it to find a comparable job right now? If you worked in a shrinking industry or a very specific field with few employers in the Toronto area, your notice period needs to be longer to reflect that reality.

A wrongful dismissal lawyer in Toronto takes these factors and uses them to build a strong argument for what you are truly owed. Your situation is unique, and the right notice period is always tailored to your specific circumstances, not some generic chart.

For instance, a 55-year-old senior manager in Toronto’s tech scene with 15 years of service is in a completely different boat than a 25-year-old marketing coordinator with two years on the job. The manager’s age, seniority, and specialized role all point to a much longer notice period—maybe 15 to 18 months. The coordinator, on the other hand, might be looking at 3 to 4 months.

Understanding Your Entitlement Hierarchy

A lot of people make the mistake of thinking their employer’s first offer is the final word. That’s rarely true. This image shows the three tiers of dismissal pay, highlighting the gap between what you might be offered and what you’re actually entitled to under common law.

As you can see, the employer’s offer is often just a starting point—a middle ground between the absolute legal minimum and what the courts would consider fair. Your goal, with an employment lawyer’s help, is to close that gap and secure a package that reflects your full common law rights.

Getting a clear idea of what you could be owed is a powerful first step. For a personalized assessment based on these factors, you can use a detailed severance pay calculator for Ontario to get a more concrete estimate.

Why Your Employment Contract Is So Important

When your employer hands you a termination letter, your mind might race. But the single most important document in that moment is your employment contract. It’s the agreement you likely signed when you were hired, and it can either severely restrict your rights or be the very key that unlocks your full severance package. The difference almost always comes down to the termination clause.

A lot of people think that once they’ve signed a contract, they’re stuck with it, no matter how unfair it might seem later. That’s a huge misconception. Ontario courts are incredibly strict about what makes a termination clause valid. Even a tiny, technical mistake can make the entire clause unenforceable, meaning a contract you signed years ago might not hold up in court today.

Think of the termination clause in your contract like a chain. If even one link is weak or legally flawed, the whole chain breaks. When that happens, the limiting terms of your contract simply fall away, and you default to your full rights under common law—which are almost always much more generous.

This “all or nothing” principle gives employees a powerful opportunity to secure fair compensation. A skilled wrongful dismissal lawyer will comb through your contract, line by line, specifically looking for these common but critical flaws.

How to Spot an Unenforceable Termination Clause

Let’s be clear: employers write contracts to protect themselves. The goal is almost always to limit what they have to pay you if they let you go, often trying to stick to the bare minimums required by the Employment Standards Act (ESA). For a termination clause to be legally binding, however, it has to be drafted perfectly. If it violates the ESA in any way, even in a hypothetical future situation, the whole clause is usually thrown out.

Here are a few common red flags that can make a termination clause invalid:

• Forgetting to continue benefits: If a clause promises to pay your salary during the notice period but says nothing about continuing your health, dental, or disability benefits, it’s likely unenforceable.
• Trying to get around the ESA: Any wording that gives you less than the absolute minimum notice or severance pay under the ESA, either now or if the law changes in the future, will be struck down.
• Vague or confusing language: When a clause is ambiguous, courts almost always interpret it in favour of the employee, not the employer who wrote it.

The famous Ontario case, Waksdale v. Swegon, really cemented this approach. The court decided that if any part of a termination provision is illegal—say, the part about firing someone for “just cause”—then the entire termination clause is invalid. This includes the part about termination without cause. So, a poorly written section about being fired for misconduct can actually help you get a full severance package.

The Power of a Legal Review

The financial difference between a legally sound termination clause and a flawed one can be staggering—often tens of thousands of dollars. Take the case of Bertsch v. Datastealth Inc. as a cautionary tale. There, the Ontario Court of Appeal upheld a contract that limited a vice-president with almost nine months of service to just four weeks’ pay. This was a tiny fraction of what he would have received under common law. It’s a stark reminder of why you should always have a contract reviewed before you sign it.

On the flip side, if a clause doesn’t meet the strict standards set by cases like Waksdale, it can open the door to your full common law entitlements. This can often mean one to two months of total compensation for every year you worked for the company.

At UL Lawyers, our team specializes in dissecting these complex agreements to find the weaknesses that can unlock your full rights. Your employment contract is the foundation of your case, and understanding its flaws is your greatest advantage. If your employer has violated the terms of your agreement, you may have grounds for legal action. You can read more about in our guide to breach of contract remedies.

Recognizing Constructive Dismissal and Bad Faith Conduct

Not every termination involves a formal letter and a handshake. Sometimes, an employer makes your job so unbearable that quitting feels like your only option. In the eyes of Ontario law, this isn’t just a tough spot—it could be a case of constructive dismissal, which is a form of wrongful dismissal.

Think of it this way: constructive dismissal happens when your employer makes a significant, negative change to your job without your agreement. The change is so fundamental that it effectively shatters your original employment agreement. You haven’t been officially fired, but the job you were hired to do is gone. It’s a termination in disguise.

This is a tricky area of employment law, and figuring out if you have a case is the first, crucial step. This is where the guidance of an experienced wrongful dismissal lawyer in Toronto becomes invaluable.

What Does Constructive Dismissal Look Like in Practice?

For a change to be considered constructive dismissal, it can’t be a minor tweak. A slight adjustment to your schedule or a small change in your duties usually won’t cut it. The change must be substantial and one-sided—meaning your employer imposed it on you.

Here are some real-world scenarios that Ontario courts often see as grounds for a constructive dismissal claim:

• A significant pay cut: Your employer suddenly slashing your salary, commissions, or bonus potential is a classic example.
• A humiliating demotion: Being stripped of your title, core responsibilities, or status in a way that fundamentally diminishes your role.
• A forced, unreasonable relocation: If you’re based in Toronto and are suddenly told your job is now in Hamilton or Barrie without any prior agreement, that’s a major change.
• A toxic or poisoned work environment: This is when you’re forced to endure ongoing harassment, bullying, or discrimination that your employer knows about but fails to stop, making your workplace intolerable.

Proving a poisoned work environment is complex, but it’s far from impossible. Ontario courts take these claims very seriously. In one case, Bovin et al. v. Over the Rainbow Packaging Services Inc., the court awarded constructively dismissed employees the maximum of 24 months’ notice plus additional moral damages precisely because of the toxic conditions they endured.

If you’re facing any of these situations, the most important thing is not to quit immediately. You should first object to the changes, preferably in writing, and then seek legal advice. Our team has a deep understanding of these complex situations. For a closer look, you can check out our guide on what is constructive dismissal in Ontario.

Understanding Bad Faith Conduct and the Duty to Be Decent

Beyond the financial fallout of losing a job, Ontario law also protects your dignity. The way an employer terminates you matters. If they act dishonestly, cruelly, or with a shocking lack of sensitivity during the firing process, it may be considered bad faith conduct.

The law acknowledges that being fired is an inherently stressful and vulnerable moment. Because of this, employers have a duty of good faith and fair dealing. They can’t compound the distress of the termination with callous, misleading, or untruthful behaviour.

This duty of good faith isn’t just a suggestion; it’s a legal obligation that applies to the entire termination process. Examples of bad faith include:

• Lying about the reason for your dismissal.
• Publicly humiliating you, like having security escort you out when there’s no reason to.
• Refusing to provide your Record of Employment on time, hindering your ability to claim EI.
• Inventing false performance issues to try and get out of paying you proper severance.

When an employer’s behaviour is particularly awful, courts can award what are known as aggravated or moral damages. These are paid on top of your standard severance pay. They are designed to compensate you for the mental distress, anxiety, and humiliation caused by the manner of your dismissal, recognizing that the employer’s actions caused harm separate from the financial loss of the job itself.

How a Wrongful Dismissal Lawyer Helps You Recover Fair Compensation

Knowing your rights is one thing, but actually enforcing them after being let go is a different beast entirely. Facing a wrongful dismissal can feel overwhelming, and it’s a path you shouldn’t walk alone. Teaming up with an experienced wrongful dismissal lawyer in Toronto shifts the power dynamic, turning a moment of vulnerability into a position of strength. You get a dedicated expert in your corner, focused solely on protecting your interests.

The whole process kicks off the second you sit down to share your story. Your lawyer immediately puts on their investigator hat, poring over every detail of your termination letter, employment contract, and pay history. They’re trained to spot the subtle wording and legal traps employers often use to try and minimize what they have to pay.

Calculating Your True Entitlements

After that initial deep dive, your lawyer gets down to the most important calculation: figuring out what you’re truly owed. This isn’t just about the bare minimums laid out in the Employment Standards Act. It’s about your full common law entitlement, which is a far more nuanced figure based on your age, position, length of service, and the real-world difficulty of finding a similar job—those Bardal factors we talked about earlier.

This calculation becomes the foundation of your entire claim. It gives you a solid, justifiable number that represents fair compensation, and it’s almost always much higher than the company’s first offer.

A lawyer’s most critical role is to level the playing field. Employers have HR departments and legal teams on their side; your lawyer is your champion, ensuring you aren’t intimidated or low-balled into accepting a raw deal.

Once they’ve established what you’re rightfully owed, your lawyer switches from analysis to action. They’ll draft a firm, persuasive demand letter addressed to your former employer. This isn’t just a simple email; it’s a formal legal document that lays out the facts, highlights the flaws in your termination, and clearly states the compensation you are seeking. It’s a powerful signal that you know your rights and you mean business.

Negotiating From a Position of Strength

That demand letter opens the door to negotiations, which is where the vast majority of these cases are actually resolved. It’s a relief for many people to learn that over 95% of wrongful dismissal disputes settle out of court. This means you can often secure a fair result without the time, cost, and stress of a trial.

Throughout the negotiation phase, your lawyer acts as both your shield and your sword.

• They take over all communications, so you don’t have to speak with your former boss or their lawyers.
• They protect you from high-pressure tactics and attempts to mislead you.
• They skillfully argue your position, using established case law to back up your claim for a proper severance package.

This ensures the entire conversation is framed around your full common law rights, not just what the company feels like paying. A lawyer’s professional standing also plays a role; understanding why online reputation is important can help you appreciate the value of choosing a well-respected legal professional.

In the end, your lawyer’s goal is to secure the best possible settlement for you—one that covers not just your base salary but also lost bonuses, benefits, and other perks. They ensure the final agreement is documented in an iron-clad legal release, giving you the financial runway and closure you need to move forward confidently. If you’re wondering where to start, you can learn more in our guide on finding an employment lawyer in Toronto.

Taking the Next Step to Protect Your Rights

The time immediately following a job loss can feel confusing and overwhelming, but I want to make one thing perfectly clear: you have more power and more rights than you probably think. That first severance offer from your employer? It’s almost never their final or best offer. Getting a legal opinion isn’t a luxury in this situation—it’s the single most important step you can take to protect your financial stability. It’s time to shift from feeling uncertain to taking decisive action.

Your path to a fair outcome starts with a clear understanding of where you stand legally, and that’s precisely where we can help. At UL Lawyers, everything we do is centred on your needs. We always start with a free, no-obligation consultation to go over the specific details of your termination. This is your opportunity to share your side of the story in a completely confidential environment and have a seasoned legal professional give you an honest assessment of your case.

Removing the Financial Barriers to Justice

We strongly believe that your ability to get expert legal advice shouldn’t be limited by your financial situation, especially when you’re dealing with a sudden loss of income. That’s why we work on a contingency fee basis.

What does this really mean for you? Simple: you do not pay any legal fees unless we successfully recover compensation for you. This approach completely removes the financial risk from your shoulders, so you can pursue what you’re rightfully owed with confidence.

Our goal is to level the playing field. It allows you to challenge your former employer’s offer without the burden of paying legal bills upfront. You can concentrate on your future while we concentrate on fighting for you.

• No Upfront Costs: You won’t pay a single dollar out of pocket to get your case started.
• No Fee Unless You Win: Our payment is simply a percentage of the money we recover for you.
• Complete Alignment: Our success is tied directly to yours. We win when you win.

We Are Here to Help Across Ontario

While our firm is based in Burlington, our services extend across the province. We are proud to represent clients throughout the Greater Toronto Area (GTA) and all of Ontario. Whether you’re in downtown Toronto, Mississauga, Brampton, or a smaller town, our team is ready to provide the top-tier legal support you deserve.

If there’s one thing to take away from all this, it’s that you are not powerless. You can take back a measure of control. But time is of the essence—there’s a limited window to make a claim before you lose the right to pursue it. To get a better sense of these critical deadlines, you can learn more by reading about the statute of limitations in Canada.

Don’t let an unfair severance offer define the next chapter of your life. Your journey toward fair compensation and peace of mind begins with a single, confidential phone call. Contact a wrongful dismissal lawyer in Toronto at UL Lawyers today and take that first crucial step.

Answering Your Questions About Wrongful Dismissal

Losing your job is overwhelming, and it’s natural to have a million questions running through your head. Let’s tackle some of the most common ones people ask when they think they’ve been wrongfully dismissed in Toronto or anywhere in Ontario. These are the straightforward answers you need to understand where you stand.

How Long Do I Have to Sue for Wrongful Dismissal in Ontario?

You have a firm deadline: two years. In Ontario, the Limitations Act, 2002 sets this two-year window, starting from the day you were actually terminated.

It’s crucial to get in touch with a wrongful dismissal lawyer long before that clock runs out. Building a strong case, negotiating with your ex-employer, and, if needed, filing a formal claim all take time. Waiting until the last minute can seriously jeopardize your chances.

If you miss that two-year deadline, the door to claiming the compensation you were likely owed is almost always shut for good.

Can My Employer Fire Me for “Just Cause”?

Yes, they can, but proving “just cause” is incredibly difficult in Ontario. This isn’t about a few slip-ups, being late once or twice, or not being a perfect employee. The standard is much, much higher.

In legal circles, we often call a just cause termination the “capital punishment” of employment law. It’s reserved for the most serious misconduct—the kind that completely shatters the trust between you and your employer.

We’re talking about things like:

• Theft or outright fraud
• Serious, deliberate defiance of clear instructions (insubordination)
• Major acts of dishonesty
• Being drunk or high at work in a way that puts others at risk

When an employer claims just cause, they’re saying they owe you absolutely nothing—no notice, no termination pay, no severance. Because it’s such a high bar to clear, you should speak with an employment lawyer immediately if this happens. In many cases, what an employer calls “just cause” doesn’t hold up, and you are still entitled to a full severance package.

I Received a Severance Offer. What Should I Do?

First, take a deep breath. Then, whatever you do, do not sign it right away. Take the documents home, and get a legal opinion. That initial offer is almost always the bare minimum required by Ontario’s Employment Standards Act (ESA).

Think of that first offer as the employer’s opening bid. It’s designed to be just enough to get you to sign away your rights for the lowest possible cost to them. It very rarely reflects what you could be entitled to under what’s called the “common law.”

The moment you sign that “full and final release” form, you lose all power to ask for anything more. Having an experienced employment lawyer review the offer is the single most important step you can take. They can tell you what your claim is actually worth and negotiate a much fairer package for you. This one action often leads to thousands, or even tens of thousands, of dollars more in your pocket.

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The legal system can feel like a maze, but you don’t have to navigate it on your own. UL Lawyers offers a free consultation with no strings attached, so you can understand your rights and see what your options are. Take the first step toward getting the fair compensation you deserve by contacting us at ullaw.ca today.