How much notice do I have to give when terminating an employee in Ontario?
When terminating an employee without cause in Ontario, you must provide either working notice or pay in lieu of notice (or a combination). The minimum amounts are set by the Employment Standards Act, 2000 (ESA) based on years of service — ranging from one week for less than one year of service up to eight weeks for eight or more years.
Employees with five or more years of service who work for an employer with a payroll of two and a half million dollars or more may also be entitled to statutory severance pay on top of notice, calculated at one week per year of service up to a maximum of twenty-six weeks.
However, those are just the minimums. Unless the employee signed a valid termination clause limiting their rights, they are also entitled to common law "reasonable notice," which Ontario courts have calculated based on factors including age, length of service, position, and availability of comparable employment. Common law notice can be significantly longer than the ESA minimums — sometimes several months or more for long-tenured or senior employees.
Getting the notice amount wrong can result in a wrongful dismissal claim. A lawyer can help you calculate exposure before you deliver the termination.
Key takeaways
- ESA minimum notice ranges from one week (less than one year) to eight weeks (eight-plus years).
- Employees with five-plus years may also be entitled to statutory severance pay.
- Without a valid termination clause, common law notice can significantly exceed ESA minimums.
- Calculate your full exposure — including common law notice — before terminating.