A number of expressions are frequently utilized to explain scenarios when work is ended. These include "let go," "released," "dismissed," "fired" and "completely laid off."

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

- dismisses or stops using a worker, consisting of where a worker is no longer used due to the bankruptcy or insolvency of the employer;

- "constructively" dismisses an employee and the employee resigns, in action, within an affordable time;

- lays a staff member off for employment a duration that is longer than a "short-term layoff".


In many cases, when an employer ends the work of a staff member who has been continually used for three months, the employer should supply the worker with either composed notice of termination, termination pay or a mix (as long as the notification and the variety of weeks of termination pay together equal the length of notification the employee is entitled to receive).

The ESA does not require an employer to offer an employee a reason why their work is being ended. There are, nevertheless, some situations where a company can not terminate a staff member's employment even if the employer is prepared to provide proper composed notification or termination pay. For example, a company can not end somebody's work, or punish them in any other method, if any part of the factor for the termination of work is based upon the staff member asking concerns about the ESA or working out a right under the ESA, such as declining to work in excess of the daily or weekly hours of work optimums, 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 workers are not entitled to notice of termination or employment termination pay under the ESA. Examples include: staff members who are guilty of wilful misconduct, disobedience, or wilful disregard of duty that is not insignificant and has not been condoned by the employer. Other examples consist of construction workers, employees on short-lived layoff, employees who refuse an offer of sensible alternative employment and employees who have actually been employed less than 3 months.

There are a number of other exemptions to the termination of employment provisions of the ESA. See "Exemptions to see of termination or termination pay." Please also refer to the unique rule tool.

The termination-of-employment rules are totally separate from any privileges a staff member might have to be paid discontinuance wage under the ESA.

Constructive dismissal

A useful termination might occur when a company makes a significant change to an essential term or condition of an employee's employment without the staff member's real or implied consent.

For example, an employee might be constructively dismissed if the company makes changes to the worker's conditions of work that lead to a substantial reduction in income or a significant unfavorable modification in such things as the employee's work area, hours of work, authority, or position. Constructive dismissal may also consist of circumstances where a company bugs or abuses a worker, or an employer gives a worker an ultimatum to "stop or be fired" and the employee resigns in reaction.

The worker would need to resign in response to the change within a sensible duration of time in order for the company's actions to be considered a termination of work for purposes of the ESA.

Constructive dismissal is a complex and challenging subject. For more details on constructive dismissal, please call the Employment Standards Information Centre at 1-800-531-5551.

Temporary layoff

A worker is on short-term layoff when a company cuts back or stops the staff member's work without ending their employment (for example, laying somebody off sometimes when there is not enough work to do). The simple fact that the company does not specify a recall date when laying the employee off does not always imply that the lay-off is not temporary. Note, however, that a lay-off, even if meant to be temporary, may result in useful termination if it is not allowed 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 ordinarily make (or earns typically) in a week.

A week of layoff does not include any week in which the employee did not work for one or more days since the worker was unable or readily available to work, went through disciplinary suspension, or was not supplied with work due to the fact that of a strike or lockout at their location of work or in other places.

Employers are not needed under the ESA to supply employees with a composed notification of a temporary layoff, nor do they need to supply a reason for the lay-off. (They may, nevertheless, be needed to do these things under a cumulative arrangement or an employment agreement.)

Under the ESA, a "temporary layoff" can last:

1. not more than 13 weeks of layoff in any period of 20 consecutive weeks;
or

2. more than 13 weeks in any duration of 20 consecutive weeks, however less than 35 weeks of layoff in any period of 52 successive weeks, where:- the worker continues to get substantial payments from the company;
or

- the employer continues to make payments for the benefit of the staff member under a genuine group or worker insurance coverage strategy (such as a medical or drug insurance strategy) or a genuine retirement or pension plan;
or

- the staff member receives supplementary unemployment advantages;
or

- the employee would be entitled to receive additional unemployment benefits however isn't getting them due to the fact that they are utilized in other places;
or

- the employer remembers the employee to work within the time frame approved by the Director of Employment Standards;
or

- the company remembers the staff member within the time frame set out in a contract with an employee who is not represented by a trade union;
or

3. a layoff longer than a layoff explained in 'B' where the company remembers a staff member who is represented by a trade union within the time set out in a contract between the union and the employer.


If a worker is laid off for a duration longer than a temporary layoff as set out above, the employer is considered to have terminated the employee's employment. Generally, the employee will then be entitled to termination pay.

Written notice of termination and termination pay

Under the ESA, a company can end the work of a staff member who has actually been employed continuously for 3 months or more if either:

- the employer has given the employee proper composed notice of termination and the notification period has actually expired

- the employer pays termination pay to the employee where no written notice or less notification than is required is offered


Written notification of termination

A staff member is entitled to notice of termination (or termination pay instead of notification) if they have been constantly utilized for at least three months. An individual is considered "employed" not just while they are actively working, however likewise during whenever in which they are not working but the work relationship still exists (for instance, time in which the employee is off ill or on leave or on lay-off).

The quantity of notice to which a staff member is entitled depends on their "duration of work". A worker's period of work consists of not only all time while the staff member is actively working but also any time that they are not working but the work relationship still exists, with the following exceptions:

- if a lay-off goes on longer than a short-lived lay-off, the employee's work is considered (or considered) to have actually been terminated on the first day of the lay-off-any time after that does not count as part of the staff member's period of work, despite the fact that the employee may still be utilized for purposes of the "constantly utilized for 3 months" credentials

- if 2 different durations of employment are separated by more than 13 weeks, only the most current duration counts for purposes of notification of termination


It is possible, in some circumstances, for an individual to have been "continually utilized" for 3 months or more and yet have a period of work of less than 3 months. In such situations, the staff member would be entitled to notice due to the fact that a worker who has been continually employed for at least three months is entitled to discover, and the minimum notification privilege of one week applies to a staff member with a period of work of any length less than one year.

The following chart defines the amount of notification required:

Note: Special guidelines figure out the amount of notice required in the case of mass terminations - where the employment of 50 or more employees is terminated at a company's establishment within a four-week duration.

Requirements throughout the statutory notice period

During the statutory notification period, a company must:

- not minimize the employee's wage rate or change any other term or condition of work;

- continue to make whatever contributions would be required to keep the worker's benefits plans; and

- pay the worker the wages they are entitled to, which can not be less than the worker's routine incomes for a routine work week weekly.


Regular rate

This is an employee's rate of pay for each non-overtime hour of operate in the employee's work week.

Regular earnings

These are incomes besides overtime pay, trip pay, public vacation pay, premium pay, domestic or sexual violence leave pay, termination of task pay, termination pay and discontinuance wage and certain legal entitlements.

Regular work week

For a worker who typically works the same number of hours weekly, a regular work week is a week of that lots of hours, not including overtime hours.

Some staff members do not have a regular work week. That is, they do not work the very same variety of hours each week or they are paid on a basis aside from time. For these employees, the "routine wages" for a "routine work week" is the average quantity of the routine earnings earned by the employee in the weeks in which the worker worked throughout the period of 12 weeks right away preceding the date the notice was provided.

An employer is not allowed to set up an employee's holiday time during the statutory notification period unless the employee-after getting composed notice of termination of employment-agrees to take their holiday time throughout the notification period.

If an employer provides longer notification than is needed, the statutory part of the notice duration is the tail end of the duration that ends on the date of termination.

How to offer written notice

In most cases, written notice of termination of employment should be resolved to the staff member. It can be supplied face to face or by mail, fax or email, as long as delivery can be verified.

There are unique guidelines for supplying notice of termination if a worker has a contract of work or a cumulative arrangement that provides seniority rights that enable a staff member who is to be laid off or whose work is to be terminated to displace (" bump") other employees.

In that case, the company needs to post a notice in the workplace (where it will be seen by the staff members) setting out the names, seniority and job category of those staff members the employer intends to terminate and the date of the proposed termination. The posting of the notification is considered to be notification of termination, since the date of the posting, to a staff member who is "bumped" by a staff member named in the notice. However, this notice of termination should still satisfy the length requirements set out in the ESA.

There are likewise special rules regarding how notification is offered when there is a mass termination.

Termination pay

An employee who does not get the written notice needed under the ESA needs to be given termination pay in lieu of notification. Termination pay is a swelling sum payment equal to the regular salaries for a regular work week that a worker would otherwise have been entitled to during the written notice duration. A worker earns trip pay on their termination pay. Employers must likewise continue to make whatever contributions would be required to preserve the benefits the employee would have been entitled to had they continued to be utilized through the notification period.

Example: Regular work week

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

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

Sarah's routine wages for a routine work week are determined:

$ 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 getaway pay on her termination pay is calculated:

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 also make sure ongoing coverage for any benefit or pension that applied to her for three weeks.

Example: No routine work week

Gerry has actually worked at a nursing home for four years. He works weekly, but his hours vary from week to week. His rate of pay is $25.00 an hour, and he is paid 6 per cent holiday pay.

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

Gerry is entitled to four weeks of termination pay.

Gerry's average profits per week are determined:

$ 1,800.00 for 12 weeks/ 10 weeks (Gerry was off sick for 2 weeks therefore these weeks are not included in the computation of typical revenues) = $180.00 a week

His termination pay is computed:

$ 180.00 × 4 weeks = $720.00

Then his vacation pay on his termination pay is computed:

6% of $720.00 = $43.20

Finally, his holiday pay is added to his termination pay:

$ 720.00 + $43.20 = $763.20

Result: Gerry is entitled to $763.20. The employer needs to also make sure continued coverage for any benefit or pension plans that used to him for 4 weeks.

When to pay termination pay

Termination pay need to be paid to a staff member either 7 days after the employee's employment is ended or on the worker's next routine pay date, whichever is later on.

Mass termination

Special rules for notice of termination might use in cases of mass termination (when an employer is terminating 50 or more staff members at its facility within a four-week duration).

Meaning of "establishment"

An "establishment" is a location at which the company brings on service. Separate areas can be thought about one establishment if either:

- they are situated within the same municipality, or

- a worker at one place has legal seniority rights that extend to the other location, enabling the employee to displace another worker (likewise called "bumping rights").


Effective October 26, 2023, in cases of mass termination, the term "facility" includes a staff member's home, but only if the employee works from home and employment does not operate at any other place where the employer continues service.

This will require that staff members who work exclusively remotely be considered for addition in the count when determining whether 50 or more staff members have been ended.

Note that where an employee performs work both from their home and from another area where the employer continues organization (for example, a workplace), their home is not consisted of in the meaning of "facility". Instead, the employee is thought about to have a connection to the office area and, therefore, for the purpose of mass termination, the employee is included with respect to that office location.

Example: where numerous locations are thought about one "facility"

ABC Company has an office and a warehouse situated in London, ON. Sabrina resides in London and works for ABC Company solely from another location: she carries out work for the business from home and does not operate at the office.

For the purpose of mass termination, the business's London workplace, London storage facility and Sabrina's London home are considered one "facility."

Employer responsibilities in a mass termination

When a mass termination occurs, the employer should finish and deliver the Form 1 (Notice of termination of work) to the Director of Employment Standards (Director) by:

- e-mail to esa_form1_notice@ontario.ca.

- fax to (416) 326-7061.

- individual shipment to the Director's office on a day and at a time when it is open.

- mail shipment to the Director's office, if the shipment can be verified.


The workplace of the Director of Employment Standards is located on the 9th flooring, 400 University Avenue, Toronto ON M7A 1T7.

Any notification to the affected staff members is not considered to have been offered till the Form 1 is gotten by the Director; to put it simply, notice of mass termination is ineffective till the Director receives the Form 1.

In addition to offering employees with private notices of termination, the company must, on the very first day of the notification duration:

- post a copy of the Form 1 offered to the Director in the office where it will concern the attention of the impacted staff members.

- provide a copy of the Form 1 to each affected worker.


The amount of notice staff members must get in a mass termination is not based on the employees' length of employment, however on the number of employees who have been terminated. An employer should give:

- 8 weeks observe if the work of 50 to 199 employees is to be terminated

- 12 weeks discover if the work of 200 to 499 workers is to be ended

- 16 weeks observe if the work of 500 or more workers is to be ended


Exception to the mass termination guidelines

The mass termination guidelines do not apply if these two things apply:

- the variety of employees whose employment is being terminated represents not more than 10 per cent of the employees who have been used for at least 3 months at the establishment

- none of the terminations are triggered by the permanent discontinuance of all or part of the employer's company at the establishment


Mass termination: resignation by an employee

A worker who has gotten termination notice under the mass termination guidelines who wishes to resign before the termination date supplied in the company's notification need to provide the employer a minimum of one week's written notification of resignation if the worker has been employed for less than 2 years. If the employment duration has been 2 years or more, the worker should give at least two weeks' written notification of resignation. However, the staff member does not need to provide notice of resignation if the company constructively dismisses the staff member or breaches a term of the agreement.

Temporary work after termination date in notice

A company can supply work to a staff member who has been given notice of termination on a short-term basis in the 13-week duration after the termination date set out in the notification without impacting the original date of the termination and without being required to supply any more notification of termination to the employee when the momentary work ends.

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

Recall rights

A "recall right" is the right of an employee on a layoff to be called back to work by their employer under a term or condition of employment. This right is typically found in collective arrangements.

A worker who has recall rights and who is entitled to termination pay since of a layoff of 35 weeks or more may select to:

- keep their recall rights and not be paid termination pay (or severance pay, if they were entitled to discontinuance wage) at that time;
or

- offer up their recall rights and get termination pay (and discontinuance wage, if they were entitled to severance pay).


If a worker is entitled to both termination pay and severance pay, they must make the exact same choice for both.

If an employee who is not represented by a trade union chooses to keep their recall rights or fails to decide, 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 an employee who is represented by a trade union elects to keep their recall rights or fails to decide, 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 employee. If they can not pertain to an arrangement, and the trade union encourages the employer and the Director of Employment Standards in composing that efforts have stopped working, the company must send the termination pay (and severance pay, if any) to the Director of Employment Standards, who holds the money in trust.

If a worker chooses to quit their recall rights or if the recall rights expire, the money that is held in trust should be sent to the staff member.

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

Exemptions to notice of termination or termination pay

A lot of these exemptions are intricate. Please call the Employment Standards Information Centre, 1-800-531-5551, if you need more information. Please also refer to the special guideline tool.

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

- is guilty of wilful misbehavior, disobedience or wilful overlook of responsibility that is not minor and has actually not been condoned by the company. Note: "wilful" includes when a staff member intended the resulting consequence or acted recklessly if they knew or must have understood the results their conduct would have. Poor work conduct that is accidental or unintended is typically ruled out wilful;

- was worked with for a particular length of time or until the conclusion of a particular task. However, such a worker will be entitled to discover of termination or termination pay if:- the work ends before the term expires or the task is finished; or

- the term expires or the job is not completed more than 12 months after the work started; or

- the employment continues for 3 months or more after the term ends or the task is completed;

See likewise: Employment Standards Self-Service Tool

Wrongful dismissal

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

The guidelines under the ESA about termination and severance of work are minimum requirements. Some employees might have rights under the common law that are greater than the rights to observe of termination (or termination pay) and severance pay under the ESA. A staff member might wish to sue their former company in court for "wrongful dismissal". Employees must be aware that they can not sue an employer for wrongful dismissal and sue for termination pay or discontinuance wage with the ministry for the exact same termination or severance of employment. An employee must select one or the other. Employees may wish to obtain legal advice worrying their rights.