I’ve been fired, now what?

| Personal Injury Lawyer

One of the most gut-wrenching experiences in the workplace is being fired and losing your job. If you feel that you have been terminated unfairly or without sufficient notice, it is in your best interests to seek out a lawyer to discuss your rights as soon as possible.

What are my rights?

I’ve been fired, now what?
Generally speaking, private employers are allowed to terminate your employment without cause as long as they have provided you with reasonable notice of termination or payment in lieu of notice. Of course, employers are allowed to terminate you for cause where there are sufficient grounds to do so (in which case there is no entitlement to notice). Employers are strictly barred, however, from terminating employees on discriminatory grounds.

Employment Standards Act

The Employment Standards Act (“ESA”) governs the minimum requirements for termination and severance pay. As a general rule, the longer you have been employed, the greater your entitlement to notice or termination pay. Furthermore, your employment contract may purport to limit your notice period in the event of termination. Depending on the nature of your employment relationship, including any disparity with respect to the bargaining power between you and your employer, terms that limit your notice period may or may not be enforceable.
If you have not been given notice of termination, then you may be entitled to termination pay (ie: payment in lieu of notice). Termination pay is usually a lump sum that is calculated based on the terminated employee’s regular wages for a given number of weeks, plus the value of employment benefits such as vacation pay and continued benefits contributions, etc. Termination pay is generally taxable as income.

Just Cause vs. Wrongful Dismissal

If you are fired “with cause”, the onus (responsibility) is on the employer to establish grounds for the dismissal. If an employer can establish just cause for dismissal, then they are allowed to terminate your employment without further legal obligations. Otherwise, they must provide pay in lieu of notice.
Establishing cause for dismissal is a high bar. The courts have found in favour of employers where the employee is guilty of serious misconduct, habitual neglect of duty, incompetence, conduct incompatible with his/her duties, taking steps that are prejudicial to the business, or if he/she has been guilty of willful disobedience. Willful disobedience can include insubordination, absenteeism, or dishonesty.
Frustration of contract is a long-standing principle of contract law that applies to employment contracts as well. Frustration means that the performance of the terms of the contract has been rendered impossible by some unforeseen changes. For example, one of the most common questions we receive is whether a long term illness is a justified reason for terminating one’s employment. In Skopitz v Intercorp Excelle Foods Inc., the Court held that whether a job contract could be frustrated by illness or incapacity depended on the nature of that illness, and whether or not it would persist for such a time that would make it unreasonable for the employer to wait for the employee to recover.

Reasonable Notice

Section 63 of the Employment Standards Act sets out the minimum requirements in terms of notice for terminated employees. The following chart is a handy tool to determine if your employer has met their minimum legal requirements:

Length of Employment Length of Notice Required
3 months to less than 1 year 1 week
1 year but less than 3 years 2 weeks
3 years but less than 4 years 3 weeks
4 years but less than 5 years 4 weeks
5 years but less than 6 years 6 weeks
7 years but less than 8 years 7 weeks
8 years or more 8 weeks

The above chart applies to employees who are lawfully bound to the Employment Standards Act. If your employment contract is deficient, or silent as to termination pay, common-law principles apply.
With respect to common-law notice principles, the leading case is Bardal v Globe & Mail Ltd., where the plaintiff had been employed as an assistant advertising manager for 16 and a half years before being terminated. This case established that there is a contractual obligation to keep the employee in his current contract, and that termination of the contract and failure to give reasonable notice would result in damages. As is often the case in law, what constitutes “reasonable notice” will depend on various factors (known as “Bardal Factors”), such as the character of employment, length of service, the age of the employee, and the availability of similar job opportunities (market conditions) for an employee with similar qualifications.

Severance

Under the ESA, an employee qualifies for severance pay if his or her employment is terminated and he or she has worked for the employer for at least 5 years, whether continuous or not and if his or her employer has a current payroll in Ontario of at least $2.5 million, or has severed the employment of 50 or more employees in a six month period.
There are also several exceptions to the requirement for severance pay, such as if the employee has either refused an offer of reasonable alternative employment, retires on a full pension, is guilty of gross and willful misconduct and neglect of duty, or in some cases where the contract has been frustrated. These are highly contextual factors and it is best to speak to a lawyer as early as possible regarding your specific case.

Conclusion

This article has provided a brief snapshot of the various legal issues surrounding employment law and termination proceedings. If you have any questions about your own case, we highly suggest seeking out legal expertise as soon as possible, given the highly time-sensitive nature of employment matters.

At Grillo Law we have professionals and employment lawyer in Toronto that may be able to help. Do not hesitate to contact us today for a no obligation consultation.

CALL 1-855-225-5725 for a FREE consultation regarding your accident benefits claim.

Remember, you will not pay any fees until your case is won or settled.

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