The information below is not intended for union employees.
The termination of an employer-employee relationship is governed by the Employment Standards Act of Ontario, Canada Labour Code, and common law principles. It may also be governed by an agreement which was signed by the parties at the time the employment relationship was formed or after the employment commenced.
When an employee is dismissed without cause, he or she is entitled to notice. The minimum notice requirement is stipulated in the above named statutes. The minimum requirement cannot be reduced by way of an employment contract.
If an employee did not enter into an employment contract at the time of after he or she commenced his or her employment, usually, an employee relies on common law principles with respect to the duration of notice period, or payment in lieu of notice.
There are multiple factors the Court will look at when awarding payment in lieu of notice period. Majority of unjust dismissal cases do not go to trial – they settle, often even before the action is brought to Court.