Can I sue my employer for breaching my employment contract in Ontario?
Yes. If your employer has breached the written or implied terms of your employment contract, you may have a civil claim for breach of contract. The most common situation is wrongful dismissal — where an employer terminates employment without proper notice or pay in lieu of notice, in breach of the terms of the employment agreement or the common law.
Ontario's Employment Standards Act, 2000 sets minimum notice and severance entitlements, but the common law often provides significantly greater notice entitlements based on factors like length of service, age, the character of the position, and the availability of similar employment. A court may award common law reasonable notice well beyond the statutory minimum.
Contract breaches can also arise from unilateral changes to key employment terms — significant changes to duties, compensation, or working conditions imposed without agreement may constitute "constructive dismissal," which is treated as a breach entitling the employee to damages as if they were terminated.
Claims for breach of employment contracts typically flow through the civil courts or, for statutory minimum claims, the Ministry of Labour. The two-year limitation period applies to civil claims. Acting promptly matters, as delay can complicate the damages picture.
Key takeaways
- Wrongful dismissal is a breach of the implied term to provide reasonable notice.
- Common law notice often exceeds Ontario's statutory minimums.
- Constructive dismissal can arise from significant unilateral changes to employment terms.
- The general two-year limitation period applies to civil employment contract claims.