Wrongful Dismissal in Canada

In Canada, wrongful dismissal usually means an employer ended someone's job without giving the notice or pay in lieu of notice they were legally owed. It does not mean the employer needed a good reason to let them go. Outside unionized workplaces and a few special protections, employers can end employment without cause, but they must pay for that right. Most wrongful dismissal claims are about money: the difference between what the employer paid and what the employee was entitled to under the common law, the employment contract and employment standards law.

This article is part of the guide to employment law in Canada.

The short version

• Being let go without a reason is usually legal. Being let go without proper notice or pay is not.
• Common-law reasonable notice is often far more than the statutory minimum.
• An unenforceable termination clause can turn a small payout into a large claim.
• Claiming just cause without enough evidence can make a dismissal wrongful.
• Federally regulated non-managers can file an unjust dismissal complaint within 90 days, and can sometimes get their job back.
• Most claims settle without a trial.

What Makes a Dismissal Wrongful

Reasonable Notice

Courts decide reasonable notice case by case, using the factors from Bardal v. Globe & Mail: the character of the job, length of service, the employee's age, and the availability of similar employment. Awards can range from a few weeks for a short-term junior employee to around 24 months for a long-service senior employee. Ontario's Court of Appeal has said that awards above 24 months require exceptional circumstances.

The award is meant to put the employee in the position they would have been in had proper notice been given. It typically covers salary, benefits, bonuses and commissions that would have been earned, and pension contributions.

See severance pay in Canada for how the amounts are calculated.

Termination Clauses

Many employment contracts try to limit an employee to the employment standards minimums. Courts read these clauses strictly in the employee's favour.

• A clause that would give less than the statutory minimum in any scenario is generally unenforceable.
• In Ontario, Waksdale v. Swegon North America (2020) held that an illegal "for cause" provision can void the "without cause" provision too, when they are read together.
• In August 2026, in Baker v. Van Dolder's Home Team Inc. and Li v. Wayfair Canada ULC, Ontario's Court of Appeal held that "at any time" and "for any reason" wording does not, on its own, make a clause invalid. Courts must read the contract as a whole, and ambiguity exists only where there are two genuinely reasonable interpretations.

Because the law in this area keeps changing, the termination clause is often the first thing an employment lawyer reviews.

Other Damages

In addition to pay in lieu of notice, courts can award:

• Moral or bad faith damages where the employer acted unfairly or in bad faith in the manner of dismissal, such as misleading the employee or making unfounded accusations. The Supreme Court addressed this in Honda Canada v. Keays (2008).
• Human rights damages for injury to dignity, feelings and self-respect, where the dismissal was discriminatory. See human rights complaints at work.
• Punitive damages in rare cases of especially harsh or malicious conduct.

The Duty to Mitigate

An employee claiming common-law notice must make reasonable efforts to find comparable work. Keep a record of applications, interviews and job offers. Income from new work usually reduces the common-law award. Failing to look for work can reduce it too. In some constructive dismissal situations, an employee may even be expected to accept work from the same employer, as the Supreme Court held in Evans v. Teamsters Local Union No. 31 (2008).

Federal Unjust Dismissal Complaints

Employees of federally regulated employers who have completed at least 12 consecutive months of continuous service and are not managers can file an unjust dismissal complaint under the Canada Labour Code. The complaint must be filed within 90 days of the dismissal. If an adjudicator finds the dismissal unjust, remedies can include reinstatement and compensation. This is one of the few routes in Canada that can lead to getting the job back.

Quebec

In Quebec, employees are entitled to reasonable notice under the Civil Code. Employees with two or more years of uninterrupted service who are dismissed without good and sufficient cause can also file a complaint under the Act respecting labour standards, within 45 days of the dismissal, which can lead to reinstatement or compensation.

How a Wrongful Dismissal Claim Usually Works

1. Get advice before signing anything. See should I sign a severance agreement?
2. Demand letter. The lawyer sets out the employee's position and asks for a better offer.
3. Negotiation. Most cases settle at this stage.
4. Lawsuit if needed. Lower-value claims may go to small claims court or a simplified procedure. Higher-value claims go to the superior court.
5. Mediation or summary judgment. Many lawsuits resolve through mediation or a summary judgment motion rather than a full trial.

Deadlines

• Lawsuits: in most common-law provinces, generally two years from the dismissal.
• Federal unjust dismissal: 90 days.
• Employment standards complaints: six months in BC and Alberta, and generally two years in Ontario. In Ontario, filing an employment standards claim prevents a lawsuit for the same issue unless the claim is withdrawn within two weeks.
• Human rights: generally one year in Ontario, BC and Alberta.

Frequently Asked Questions

Can I sue my employer for firing me?

Yes, if the employer did not give the notice or pay you were owed, alleged cause it cannot prove, or dismissed you for a discriminatory reason. You cannot usually sue simply because you disagree with the decision.

Can I get my job back?

Rarely, outside unionized workplaces. Federally regulated non-managers can seek reinstatement through an unjust dismissal complaint, and some Quebec employees can seek reinstatement through the CNESST process. Human rights tribunals can also order reinstatement in some cases.

How much is my wrongful dismissal claim worth?

It depends on the termination clause, your age, length of service, role, compensation and the job market. An employment lawyer can usually estimate a range in a first meeting. See how much an employment lawyer costs.

Does it matter that I was on probation?

A probation clause does not automatically remove notice rights. Its effect depends on the contract wording and the employment standards minimums, which generally start after three months of service.

Think you were wrongfully dismissed? Search LawyerDirectoryCanada.ca for employment lawyers by province and city.

Sources

• Your guide to the Employment Standards Act: termination of employment, Government of Ontario
• Your guide to the Employment Standards Act: filing a claim, Government of Ontario
• Ontario Court of Appeal rules on ESA termination clauses: the Baker and Li decisions, BLG
• "At any time" and "for any reason" termination clauses survive, Hicks Morley
• Top Ontario employment law cases of 2025, Miller Thomson
• Wrongful dismissal for federal employees under the Canada Labour Code, Goldblatt Partners
• Everything you need to know about terminating an employee in Quebec, CFIB