What to do — and what not to sign — in the days after a termination.
Who this is for & what you'll get: You're an Ontario employee who was terminated without cause — let go not because of serious misconduct, but because the employer chose to end the relationship. This checklist walks you through your rights, the documents to gather, the clause that decides your payout, and the one thing not to do too quickly: sign. Work through it before you accept any offer.
⚖️ This is a general guide, not legal advice. It can't account for your specific situation. Use it to get oriented, then confirm the details with a licensed Ontario lawyer.
Know the difference: two layers of rights
This is the single most valuable idea in this guide, so start here.
When you're let go without cause in Ontario, you may be entitled to two different things:
- Employment Standards Act (ESA) minimums — the floor. Ontario's Employment Standards Act, 2000 sets out minimum notice (or pay in lieu) and, for some employees, severance pay, based largely on length of service. This is the least you're owed.
- Common-law reasonable notice — often much more. Separate from the ESA, the common law (judge-made law) may entitle you to a far larger amount of reasonable notice — frequently well beyond the ESA minimums. It's assessed case by case, looking at things like your age, length of service, type of position, and how hard it would be to find similar work.
⚠️ Watch out: Employers often present the ESA minimum as if it's the whole deal. It frequently isn't. The gap between "ESA minimum" and "common-law entitlement" can be substantial — and bridging it is exactly what legal advice is for.
⚠️ Before anything else: do not sign right away
This is urgent enough to put first.
- Do not sign the release or "full and final" agreement on the spot. A release is a document where you give up your right to sue in exchange for a payment. Once signed, it is very hard to undo.
- Do not feel pressured by a deadline. Employers often attach a tight deadline to a severance offer. Deadlines can sometimes be extended, and a rushed signature can cost you far more than a short delay.
- Don't accept verbally either. A clear "yes" can matter. Say you need time to review.
- Stay professional. Resist the urge to vent in writing or on social media. It rarely helps and can hurt.
Tip: A calm, neutral line works well: "Thank you. I'd like time to review this with an advisor before I respond." You are entitled to do that.
Step 1 — Get the paper trail
You'll need documents to assess what you're owed. Gather these now, while you still have access.
- The termination letter — the document ending your employment. Why it matters: it often states what the employer is offering and on what basis, and it may reference a clause in your contract.
- Your employment contract or offer letter, plus any updates, bonus plans, or commission agreements you signed. Why it matters: the contract may contain the termination clause that decides your payout (see Step 3).
- Pay records — recent pay stubs, records of bonuses, commissions, and benefits. Why it matters: your "compensation" for notice purposes can include more than base salary.
- Performance reviews and commendations. Why it matters: they help rebut any later suggestion that there were performance problems.
- Any emails or letters about your performance or the termination.
- Your Record of Employment (ROE) and information about benefits continuation.
Tip: Save copies to a personal email or drive before your access is cut off. Don't take confidential company data — just your own employment records.
Step 2 — Calculate the ESA minimum (the floor)
You need to know the least you're owed before you can judge an offer.
- Confirm how the ESA applies to you. Most provincially regulated Ontario employees are covered; some workers and industries have different rules.
- Estimate your ESA notice/pay in lieu. Under the Employment Standards Act, 2000, minimum notice increases with your length of service: one week once you have three months' service, two weeks at one year, three weeks at three years, then one additional week per completed year, to a cap of eight weeks at eight years or more (ESA ss. 54 and 57, as of 2026). Confirm your own figures with the Ministry of Labour, Immigration, Training and Skills Development — these amounts are set by the ESA and can change.
- Check whether you also qualify for ESA severance pay. Severance pay under the ESA is a separate entitlement from notice, paid on top of it. Under ESA s. 64 (as of 2026) you qualify if you were employed five years or more and either your employer has a payroll of $2.5 million or more, or 50 or more employees were let go within six months because all or part of the business permanently closed. The amount is one week's pay for each completed year of service (plus a pro-rated part-year), to a maximum of 26 weeks.
- Treat this number as the floor, not the ceiling. Your common-law entitlement may be considerably higher.
⚠️ Watch out: "Notice" and "severance" mean specific, different things under Ontario law — they are not interchangeable, even though people use them loosely. An offer that covers one may still leave the other unpaid.
Step 3 — Assess the termination clause
This is the make-or-break issue in many Ontario cases.
Many employment contracts contain a termination clause — language that tries to limit what you get when you're let go (often capping you at the ESA minimum). But these clauses must be drafted correctly. Ontario courts have struck down termination clauses that fail to comply with the Employment Standards Act, 2000 — and when a clause is unenforceable, the employee may fall back on the much larger common-law reasonable notice.
- Find the termination clause in your contract (if there is one).
- Don't assume it's valid. Whether it holds up is a technical legal question, and small wording problems can render the whole clause unenforceable.
- Have it reviewed before you rely on it — or before the employer relies on it against you.
Tip: This is the most common place where employees leave money on the table. If you take only one thing to a lawyer, take your contract's termination clause.
Step 4 — Protect your case: mitigation and records
The law generally expects you to make reasonable efforts to find new work — this is called mitigation. It can affect what you ultimately recover, so keep proof of your efforts.
- Start a job-search log. Record applications, dates, companies, and responses.
- Keep copies of applications, recruiter emails, and interview invitations.
- Apply for comparable roles — reasonable efforts, not every job in existence.
- Save evidence of any new income, since earnings from a new job can affect the calculation.
⚠️ Watch out: "Mitigation" does not mean you must grab the first low-paying job offered. It means reasonable efforts to find comparable work. But poor or no documentation can be used against you — so keep the log.
Step 5 — Mind the deadline
There is a time limit to start a court claim in Ontario, set by the Limitations Act, 2002. Wait too long and you can lose the right to sue entirely.
- Note the date of your termination — limitation periods often run from a key date tied to it.
- Don't let the clock run while you "think about it." Confirm the applicable limitation period with a lawyer — as of writing, the general civil limitation period in Ontario is set by the Limitations Act, 2002, and you should verify how it applies to your situation.
- Act well before any deadline, not on the eve of it.
⚠️ Deadline callout: Missing the limitation period can end your claim before it begins. If you're unsure how much time you have, treat it as urgent and get advice now.
A note on constructive dismissal
You don't have to be handed a termination letter to be "let go" in the eyes of the law.
Constructive dismissal happens when an employer makes a fundamental, unilateral change to your job — a significant pay cut, a major demotion, a forced relocation, or a toxic work environment — that effectively ends the employment relationship even though no one said "you're fired." In those cases you may be treated as dismissed as if you'd been terminated without cause.
- Don't simply walk out. Constructive dismissal is legally tricky, and quitting at the wrong moment can undercut your claim.
- Document the change (the new terms, the date, any communications).
- Get advice quickly — how you respond can affect your rights.
Step 6 — Get advice before you accept
Pulling it together:
- Have your contract, termination letter, and offer reviewed before responding.
- Understand both the ESA floor and your likely common-law entitlement.
- Ask whether the termination clause is enforceable.
- Keep mitigating and keep records.
- Watch the limitation deadline.
- Negotiate or sign only once you understand what you're giving up.
Scenario: An employee with eight years of service is handed a letter offering "eight weeks, the ESA minimum." Eight weeks is the notice cap — but if her employer's payroll is $2.5 million or more, the ESA floor is that notice plus roughly eight weeks of severance pay, so the letter may be about half her statutory minimum. Her contract also has a termination clause — but a review suggests it may not comply with the ESA, which could open the door to common-law reasonable notice well beyond eight weeks. She doesn't sign; she gets advice first. The clause, not the letter, may decide her outcome.
What's next
Don't sign anything yet. Gather your documents, write down the dates, and have a lawyer review your contract and the offer before you respond. The cost of a review is usually small next to the gap between an ESA-minimum offer and a full common-law entitlement.
How Treadstone Law can help
A termination is stressful, and the pressure to "just sign and move on" is real. Treadstone Law reviews Ontario severance packages and termination clauses, tells you in plain language whether the offer is fair, and negotiates for more where the law supports it.
- Flat, transparent fees for a severance review — know the cost up front.
- Online intake — start from anywhere in Ontario at treadstonelaw.ca/start-file.
- Talk to a person — call 1-844-900-1070.
- Learn more about our litigation services at treadstonelaw.ca/litigation, see typical costs at treadstonelaw.ca/pricing, or start now at treadstonelaw.ca/start-file.
We serve employees across Ontario, with an office in Mississauga and full virtual service province-wide.
This is not legal advice
This guide is general information, not legal advice. Reading it does not create a lawyer-client relationship. Ontario laws, tax rates, and government programs change, and how the law applies depends on your specific facts. For advice about your situation, speak with a licensed Ontario lawyer. Treadstone Law is licensed by the Law Society of Ontario — reach us at 1-844-900-1070 or start a file online.