Just Fired or Laid Off in Ontario? Here's What to Do Right Now

Losing a job is one of the most disorienting experiences an adult can go through. In the moment, it's hard to think clearly — and that's exactly when the decisions you make (or don't make) can have the biggest financial consequences. If you've just been fired or laid off in Ontario, this article is a plain-language guide to what to do in the first hours and days, before you sign anything.

Step 1: Don't Sign Anything at the Termination Meeting

This is the most important rule. Employers frequently present a termination package — a letter, a release, a final cheque — at the termination meeting and ask you to sign immediately, sometimes suggesting the offer is time-sensitive.

You are not required to sign anything on the spot. In Ontario, a reasonable amount of time to review documents and seek legal advice is generally recognized. Signing a release in exchange for a package you don't understand is almost always final and binding — courts very rarely set aside signed releases.

Politely say you need time to review the documents with a lawyer. Take the paperwork and leave.

Step 2: Understand What You've Been Given

Once you're somewhere calm, read through the documents carefully:

• What is the reason given for termination? Was it "without cause" or "for cause"? These have very different legal meanings.
• What is the package? Is it ESA minimums, common law, or something in between? How are bonuses, benefits, and commissions treated?
• Is there a release? If so, what are you being asked to waive? A general release of all claims is very broad.
• Is there a deadline on the offer? Note it, but don't panic — a deadline is not always legally enforceable, especially if it is unreasonably short.
• Does your employment contract have a termination clause? Pull out your original employment agreement and check.

Step 3: Document the Termination Meeting

Write down — while it's fresh — everything you can remember about the termination:

• Who was present
• What was said and in what order
• What reasons were given (verbally, not just in writing)
• Whether you were escorted out, denied access to files, or treated in any unusual way
• Any promises made verbally about the package or references

This record is valuable. Verbal representations in a termination meeting can matter in litigation.

Step 4: Secure Your Personal Records

Before returning any equipment or losing access to your work systems, gather anything that is legitimately yours:

• Personal contacts and calendars (not confidential employer data)
• Copies of your employment contract, offer letter, and any amendments
• Past performance reviews, commendation letters, or awards
• Any written communications about the stated reason for termination

Do not take confidential employer information, trade secrets, or client lists — doing so could create legal liability for you that undermines your own claim.

Step 5: Know the Difference Between a Layoff and a Termination

In Ontario, the Employment Standards Act, 2000 distinguishes between a termination and a temporary layoff. A temporary layoff allows employers to put employees on leave for a defined period without it constituting a termination. But there are strict rules — maximum layoff durations, notice requirements, and the employer's obligation to recall you.

If the layoff exceeds ESA-permitted limits, it generally converts to a termination, triggering full notice and severance obligations. If you've been told your layoff is "temporary" and weeks are turning into months, get advice about whether you've effectively been terminated.

Step 6: Apply for Employment Insurance Promptly

Apply for Employment Insurance (EI) through Service Canada as soon as possible after your last day. There is a waiting period before benefits begin, and delays in applying can delay benefits further. Do not wait for a severance dispute to resolve before applying — EI and a civil termination claim are separate matters.

If you received severance or pay in lieu of notice, Service Canada will determine how that affects your EI waiting period. Verify the current rules with Service Canada.

Step 7: Understand Your Mitigation Duty

Whether or not you pursue a legal claim, you have a legal duty to mitigate — to make reasonable efforts to find comparable employment. This is important for two reasons:

1. It limits your financial losses
2. If you later pursue a wrongful dismissal claim, your former employer will argue that you failed to mitigate if you sat idle

Keep records of every job application, every interview, and every offer you receive or decline. Courts assess the quality and consistency of your job search.

Step 8: Get Legal Advice Before the Deadline

Most termination packages come with an offer deadline. Before that deadline, get a lawyer to review:

• Whether your package reflects your full ESA entitlement (termination notice + severance pay if applicable)
• Whether a valid termination clause limits your common-law notice
• What your common-law reasonable notice might be if no valid clause exists
• Whether any human rights, harassment, or other claims might apply

Many Ontario employment lawyers, including Treadstone Law, offer flat-fee reviews. You'll know the cost of advice before you commit.

Frequently asked questions