Unjust Dismissal Complaints Under The Canada Labour Code

Employment contracts often set out the following terms of employment:

• Compensation (including any applicable bonus structure)
• Hours of work
• Requirements of the role
• Reference to applicable employment policies
• Included or offered benefits
• Vacation entitlement
• Employer and employee obligations and entitlements on resignation or termination
• Confidentiality/non-disclosure requirements
• Non-solicitation obligations

Employment contracts are not legally required.  Specifically, there is no law that requires that the terms of employment be put in writing.  Many employers do, however, choose to require employees to sign employment contracts.

These agreements may limit an employee’s rights, such as those relating to termination or severance pay. In some cases, this may result in a lesser entitlement than the employee would receive under the common law. Employment contracts are therefore an important component of the employment relationship and can have a critical impact on employee rights.

It depends.

Ontario courts have found several instances of employers acting with what is known as “bad faith” during the course of termination and have awarded the terminated employees additional damages as a result.

For example, if an employer terminates an employee for cause, meaning the employee is not entitled to reasonable notice or pay in lieu, the employer must be able to establish evidence of the cause. In one case, an employer terminated a long-term senior employee after alleging a broad claim of “fraud” against the employee. The employee brought a claim for wrongful dismissal, and the employer countersued. In the end, the court found that the employer had no basis for the claim of fraud, and awarded the employee significant damages, not only for payment in lieu of notice but also aggravated damages due to the employer’s egregious conduct.

It is important for any employee facing termination, for cause or otherwise, to seek out the advice of a skilled employment lawyer before agreeing to any terms, especially if they feel that their employer is not acting in good faith.

When an employee in Canada is terminated without cause, they are legally entitled to either advance notice of termination or compensation in lieu of notice. This protection exists under both provincial employment standards legislation and common law.

Being “fired without cause” means the employer has ended the employment relationship despite no serious misconduct or performance failure. In these cases, the employer must provide fair compensation to support the employee’s transition.

An employee’s entitlements may include:

• Notice or pay in lieu of notice: Employees must receive either advance notice or compensation equivalent to what they would have earned during the notice period.
• Severance pay: In certain situations—such as long-term employment, large payroll employers, or mass terminations—additional severance pay may apply, depending on the province.
• Common law compensation: Beyond minimum legal standards, employees may be entitled to more generous compensation based on factors like length of service, age, position, salary, and ability to find similar work.
• Human rights protections: A termination must not violate human rights laws (e.g., discrimination based on race, gender, disability, or other protected grounds).

Minimum notice periods are set by provincial laws and serve as a baseline. However, common law often provides significantly greater entitlements.

If you believe your termination was unfair, discriminatory, or that you were not provided full compensation, it is advisable to seek legal guidance to understand your rights and options.

Yes. The Employment Standards Act makes it clear that if an employee has an employment contract that contains a provision entitling them to more than what they are entitled to pursuant to the Employment Standards Act, then the provision providing for the greater right will apply.

For example, the Employment Standards Act sets out that after one year of service an employee is entitled to two weeks’ notice of the termination of their employment. If, however, an employee’s employment contract indicates that after one year of service the employee will be entitled to three week’s notice of the termination of their employment, then the provision in the employment contract will apply.

If your employment contract does not stipulate that you are limited to the entitlements outlined in the Employment Standards Act, then you may also be entitled to receive more.

A Record of Employment (ROE) is a critical document issued by employers in Canada when an employee experiences an interruption of earnings. It is used by Service Canada to determine whether an individual qualifies for Employment Insurance (EI) benefits, making accurate completion essential.

The most important part of the ROE is the reason for separation code, as it directly affects EI eligibility. Here are the main ROE codes and what they mean:

• A – Work Shortage / End of Contract or Season: Used for layoffs or reduced work; generally supports EI eligibility
• B – Strike or Lockout: Work stoppage due to a labour dispute
• D – Illness or Injury: Employee is unable to work due to health reasons
• E – Quit: Voluntary resignation; may negatively affect EI eligibility
• F – Maternity: Leave due to pregnancy or childbirth
• G – Retirement: Employee has retired
• H – Work Sharing: Reduced hours under a work-sharing agreement
• J – Apprentice Training: Absence due to apprenticeship training
• K – Other: Used when no other code applies, with an explanation required
• M – Dismissal: Termination by employer; EI eligibility depends on circumstances (e.g., with or without cause)
• N – Leave of Absence: Temporary leave (non-maternity/parental)
• P – Parental: Leave following birth or adoption of a child
• Z – Compassionate Care / Family Caregiver: Time off to care for a seriously ill family member

The code matters because Service Canada uses it to assess whether the employee qualifies for EI. For example, codes like “A – Work Shortage” typically support eligibility, while “E – Quit” or “M – Dismissal (for cause)” may lead to denial or further review.

If an incorrect code is entered, it can delay or jeopardize EI benefits. Employees should first raise the issue with their employer. If it remains unresolved, they can contact Service Canada or seek legal advice to request a correction or challenge the ROE.

Employers must issue the ROE within five days after the end of the pay period in which the interruption of earnings occurs. Timely and accurate submission ensures employees can apply for EI without unnecessary delays.

If the situation does not clearly fit a standard code, employers should use “K – Other” and provide a clear explanation to avoid confusion or processing issues.

Because ROE coding can significantly impact access to EI benefits, both employers and employees should ensure the information is accurate and seek professional guidance if there is any uncertainty.

Reprisal is a situation in which an employee is threatened, disciplined or fired for asking about or trying to enforce a legal right in accordance with applicable employment law legislations. An example of reprisal in the workplace could be if an employee refused to perform a task because the work was unsafe and was then punished by the employer.

An employer cannot fire, threaten to fire, suspend or impose any other penalty on the employee for enforcing their rights as set out under the Occupational Health and Safety Act. In Ontario, legislation that explicitly prohibits reprisal by an employer includes the Employment Standards Act, the Ontario Human Rights Code and the Occupational Health and Safety Act.