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Opened Feb 28, 2025 by Adolph Denny@adolphdenny87
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Termination Of Employment


A number of expressions are commonly used to explain circumstances when employment is terminated. These consist of "let go," "discharged," "dismissed," "fired" and "permanently laid off."

Under the Employment Standards Act, 2000 (ESA) an individual's employment is ended if the company:

- dismisses or stops employing a staff member, consisting of where a staff member is no longer used due to the personal bankruptcy or insolvency of the employer;
- "constructively" dismisses a staff member and the employee resigns, in action, within a reasonable time;
- lays an employee off for a duration that is longer than a "short-lived layoff".
For the most part, when a company ends the employment of an employee who has actually been continuously used for three months, the company must provide the staff member with either written notification of termination, termination pay or a combination (as long as the notification and the number of weeks of termination pay together equal the length of notification the employee is entitled to get).

The ESA does not require an employer to offer a worker a reason why their employment is being ended. There are, however, some circumstances where an employer can not end a worker's work even if the company is prepared to provide appropriate written notice or termination pay. For instance, a company can not end somebody's employment, or punish them in any other way, if any part of the factor for the termination of employment is based upon the employee asking concerns about the ESA or exercising a right under the ESA, such as refusing to work in excess of the daily or weekly hours of work maximums, or taking a leave of lack defined in the ESA. Please see the chapter on reprisals.

Qualifying for termination notice or pay in lieu

Certain employees are not entitled to see of termination or termination pay under the ESA. Examples include: employees who are guilty of wilful misconduct, disobedience, or wilful disregard of duty that is not unimportant and has not been excused by the company. Other examples include building employees, staff members on temporary layoff, employees who decline a deal of sensible alternative employment and staff members who have actually been employed less than three months.

There are a variety of other exemptions to the termination of employment arrangements of the ESA. See "Exemptions to see of termination or termination pay." Please also describe the unique guideline tool.

The termination-of-employment rules are entirely separate from any entitlements a worker might have to be paid severance pay under the ESA.

Constructive termination

A useful termination may take place when a company makes a substantial modification to a basic term or condition of a worker's work without the worker's real or implied consent.

For instance, a worker might be constructively dismissed if the company makes modifications to the staff member's conditions of employment that result in a substantial reduction in wage or a significant negative modification in such things as the worker's work area, hours of work, authority, or position. Constructive termination might likewise consist of situations where an employer bothers or abuses an employee, or an employer gives a staff member a final notice to "give up or be fired" and the worker resigns in action.

The staff member would have to resign in reaction to the modification within a reasonable amount of time in order for the employer's actions to be thought about a termination of work for functions of the ESA.

Constructive termination is a complex and tough topic. For more information on useful termination, please contact the Employment Standards Information Centre at 1-800-531-5551.

Temporary layoff

An employee is on momentary layoff when a company cuts back or stops the staff member's work without ending their work (for instance, laying somebody off at times when there is not sufficient work to do). The simple reality that the employer does not specify a recall date when laying the worker off does not always indicate that the lay-off is not short-term. Note, however, that a lay-off, even if planned to be momentary, may result in useful dismissal if it is not enabled by the work contract.

For the functions of the termination provisions of the ESA, a "week of layoff" is a week in which the worker earned less than half of what they would ordinarily make (or makes typically) in a week.

A week of layoff does not consist of any week in which the worker did not work for several days due to the fact that the worker was unable or readily available to work, was subject to disciplinary suspension, or was not offered with work because of a strike or lockout at their place of employment or in other places.

Employers are not required under the ESA to offer workers with a composed notice of a temporary layoff, nor do they need to provide a factor for the lay-off. (They may, nevertheless, be required to do these things under a collective agreement or a work contract.)

Under the ESA, a "short-lived layoff" can last:

1. not more than 13 weeks of layoff in any duration of 20 successive weeks; or
2. more than 13 weeks in any period of 20 successive weeks, however less than 35 weeks of layoff in any period of 52 consecutive weeks, where:- the employee continues to get significant payments from the employer; or
- the employer continues to pay for the advantage of the staff member under a genuine group or worker insurance strategy (such as a medical or drug insurance plan) or a genuine retirement or pension plan; or
- the worker receives extra unemployment benefits; or
- the employee would be entitled to receive extra welfare however isn't getting them due to the fact that they are employed somewhere else; or
- the company recalls the staff member to work within the time frame approved by the Director of Employment Standards; or
- the employer recalls the worker within the time frame set out in an arrangement with a worker who is not represented by a trade union; or



3. a layoff longer than a layoff described in 'B' where the company recalls a staff member who is represented by a trade union within the time set out in an agreement in between the union and the company.
If an employee is laid off for a period longer than a short-lived layoff as set out above, the company is thought about to have ended the worker's work. Generally, the staff member will then be entitled to termination pay.

Written notification of termination and termination pay

Under the ESA, a company can end the employment of a worker who has actually been utilized continually for 3 months or more if either:

- the employer has given the employee correct composed notice of termination and the notice period has actually ended
- the employer pays termination pay to the employee where no written notice or less notification than is required is offered
Written notification of termination

A staff member is entitled to see of termination (or termination pay instead of notification) if they have been continually employed for at least 3 months. A person is thought about "utilized" not only while they are actively working, but also during any time in which they are not working however the work relationship still exists (for instance, time in which the staff member is off sick or on leave or on lay-off).

The quantity of notice to which a staff member is entitled depends upon their "duration of employment". An employee's period of employment consists of not just all time while the employee is actively working however also whenever that they are not working but the employment relationship still exists, with the following exceptions:

- if a lay-off goes on longer than a momentary lay-off, the worker's work is deemed (or considered) to have actually been terminated on the very first day of the lay-off-any time after that does not count as part of the employee's period of work, despite the fact that the employee may still be utilized for purposes of the "continuously utilized for three months" certification
- if two different durations of work are separated by more than 13 weeks, just the most recent duration counts for purposes of notice of termination
It is possible, in some situations, for a person to have been "constantly used" for 3 months or more and yet have a duration of employment of less than three months. In such scenarios, the employee would be entitled to observe since a staff member who has been constantly used for at least 3 months is entitled to discover, and the minimum notice entitlement of one week uses to a staff member with a period of employment of any length less than one year.

The following chart specifies the amount of notification needed:

Note: Special rules identify the quantity of notice needed when it comes to mass terminations - where the employment of 50 or more staff members is ended at an employer's facility within a four-week period.

Requirements during the statutory notification period

During the statutory notice period, a company must:

- not minimize the employee's wage rate or modify any other term or condition of employment;
- continue to make whatever contributions would be required to keep the employee's advantages plans; and
- pay the worker the wages they are entitled to, which can not be less than the staff member's routine salaries for a routine work week every week.
Regular rate

This is an employee's rate of spend for each non-overtime hour of work in the worker's work week.

Regular incomes

These are salaries aside from overtime pay, getaway pay, public vacation pay, premium pay, domestic or sexual violence leave pay, termination of assignment pay, termination pay and discontinuance wage and particular legal privileges.

Regular work week

For an employee who generally works the very same variety of hours each week, a regular work week is a week of that many hours, not consisting of overtime hours.

Some staff members do not have a regular work week. That is, they do not work the very same number of hours each week or they are paid on a basis other than time. For these workers, the "routine salaries" for a "routine work week" is the average quantity of the regular incomes earned by the employee in the weeks in which the staff member worked during the period of 12 weeks instantly preceding the date the notice was provided.

An employer is not permitted to schedule a worker's trip time throughout the statutory notice period unless the employee-after receiving written notification of termination of employment-agrees to take their trip time throughout the notification period.

If an employer supplies longer notice than is needed, the statutory part of the notice duration is the tail end of the period that ends on the date of termination.

How to supply written notification

Most of the times, written notification of termination of employment must be addressed to the worker. It can be offered in person or by mail, fax or email, as long as delivery can be validated.

There are unique rules for providing notification of termination if a staff member has an agreement of employment or a cumulative arrangement that offers seniority rights that permit a staff member who is to be laid off or whose work is to be terminated to displace (" bump") other employees.

Because case, the employer needs to post a notification in the work environment (where it will be seen by the staff members) setting out the names, seniority and task category of those employees the company plans to terminate and the date of the proposed termination. The posting of the notice is considered to be notification of termination, as of the date of the posting, to an employee who is "bumped" by an employee called in the notice. However, this notice of termination must still fulfill the length requirements set out in the ESA.

There are also unique rules relating to how notification is provided when there is a mass termination.

Termination pay

A worker who does not receive the composed notification required under the ESA must be given termination pay in lieu of notification. Termination pay is a lump amount payment equal to the routine wages for a routine work week that a staff member would otherwise have been entitled to throughout the composed notification period. A worker earns holiday pay on their termination pay. Employers must likewise continue to make whatever contributions would be required to preserve the benefits the employee would have been entitled to had they continued to be employed through the notice duration.

Example: Regular work week

Sarah has actually worked for 3 and a half years. Now her job has been removed and her work has been ended. Sarah was not provided any written notification of termination.

Sarah worked 40 hours a week every week and was paid $20.00 an hour. She also got 4 per cent holiday pay. Because she worked for more than 3 years but less than four years, she is entitled to three weeks' pay in lieu of notice.

Sarah's regular incomes for a regular work week are computed:

$ 20.00 an hour X 40 hours a week = $800.00 a week


Her termination pay is determined:

$ 800.00 X 3 weeks = $2,400.00


Then her getaway pay on her termination pay is calculated:

4% of $2,400.00 = $96.00


Finally, her holiday pay is contributed to her termination pay:

$ 2400.00 + $96.00 = $2,496.00


Result: Sarah is entitled to $2,496.00. The employer must also ensure ongoing protection for any benefit or pension strategies that used to her for 3 weeks.

Example: No routine work week

Gerry has actually operated at a retirement home for 4 years. He works every week, but his hours vary from week to week. His rate of pay is $25.00 an hour, and he is paid 6 percent holiday pay.

Gerry's employer removed his position and did not give Gerry any composed notification of termination. Gerry was ill and off work for 2 of the 12 weeks immediately preceding the day his work was ended. Gerry earned $1,800.00 in the 12 weeks before the day on which his employment ended.

Gerry is entitled to 4 weeks of termination pay.

Gerry's average revenues weekly are computed:

$ 1,800.00 for 12 weeks/ 10 weeks (Gerry was off sick for two weeks therefore these weeks are not consisted of in the calculation of average earnings) = $180.00 a week


His termination pay is computed:

$ 180.00 × 4 weeks = $720.00


Then his vacation pay on his termination pay is computed:

6% of $720.00 = $43.20


Finally, his getaway pay is included to his termination pay:

$ 720.00 + $43.20 = $763.20


Result: Gerry is entitled to $763.20. The employer must likewise make sure ongoing coverage for any benefit or pension that applied to him for four weeks.

When to pay termination pay

Termination pay need to be paid to a worker either 7 days after the employee's employment is terminated or on the worker's next routine pay date, whichever is later on.

Mass termination

Special rules for notice of termination may use in cases of mass termination (when an employer is terminating 50 or more workers at its facility within a four-week period).

Meaning of "establishment"

An "establishment" is an area at which the company continues company. Separate areas can be thought about one establishment if either:

- they lie within the very same town, or
- an employee at one area has contractual seniority rights that encompass the other location, permitting the staff member to displace another worker (also called "bumping rights").
Effective October 26, 2023, in cases of mass termination, the term "establishment" consists of a staff member's home, however only if the worker works from home and does not operate at any other location where the employer continues service.

This will need that employees who work exclusively remotely be thought about for inclusion in the count when determining whether 50 or more staff members have actually been terminated.

Note that where a staff member performs work both from their home and from another location where the company continues organization (for instance, an office), their home is not consisted of in the meaning of "establishment". Instead, the employee is considered to have a connection to the office area and, therefore, for the purpose of mass termination, the staff member is consisted of with respect to that office area.

Example: where multiple places are thought about one "establishment"

ABC Company has an office and a storage facility situated in London, ON. Sabrina lives in London and works for ABC Company exclusively from another location: she carries out work for the business from home and does not work at the workplace.

For the purpose of mass termination, the business's London workplace, London warehouse and Sabrina's London home are considered one "facility."

Employer commitments in a mass termination

When a mass termination happens, the employer must complete and deliver the Form 1 (Notice of termination of employment) to the Director of Employment Standards (Director) by:

- email to esa_form1_notice@ontario.ca.
- fax to (416) 326-7061.
- personal delivery to the Director's office on a day and at a time when it is open.
- mail delivery to the Director's workplace, if the shipment can be validated.
The workplace of the Director of Employment Standards is located on the 9th flooring, 400 University Avenue, Toronto ON M7A 1T7.

Any notification to the affected workers is ruled out to have actually been provided up until the Form 1 is received by the Director; to put it simply, notification of mass termination is ineffective until the Director gets the Form 1.

In addition to offering employees with individual notices of termination, the employer must, on the first day of the notice period:

- post a copy of the Form 1 supplied to the Director in the workplace where it will come to the attention of the affected staff members.
- offer a copy of the Form 1 to each affected worker.
The amount of notice staff members must get in a mass termination is not based on the staff members' length of work, but on the number of staff members who have actually been ended. A company must provide:

- 8 weeks discover if the employment of 50 to 199 employees is to be terminated
- 12 weeks discover if the employment of 200 to 499 staff members is to be ended
- 16 weeks notice if the work of 500 or more workers is to be terminated
Exception to the mass termination guidelines

The mass termination rules do not apply if these 2 things use:

- the variety of workers whose work is being ended represents not more than 10 percent of the employees who have been employed for at least three months at the establishment
- none of the terminations are triggered by the permanent discontinuance of all or part of the employer's organization at the facility
Mass termination: resignation by a staff member

A staff member who has actually received termination notice under the mass termination rules who wishes to resign before the termination date offered in the employer's notice must give the company a minimum of one week's written notification of resignation if the employee has actually been utilized for less than 2 years. If the work duration has been two years or more, the employee must give at least two weeks' composed notice of resignation. However, the worker does not need to notify of resignation if the employer constructively dismisses the employee or breaches a regard to the agreement.

Temporary work after termination date in notification

An employer can supply work to a worker who has been offered notification of termination on a temporary basis in the 13-week period after the termination date set out in the notification without affecting the initial date of the termination and without being required to provide any additional notice of termination to the staff member when the short-term work ends.

If a worker works beyond the 13-week period after the termination date and after that has their employment terminated, the worker will be entitled to a new composed notification of termination as if the previous notice had never been offered. The employee's duration of work will then likewise include the period of momentary work.

Recall rights

A "recall right" is the right of a worker on a layoff to be called back to work by their company under a term or condition of employment. This right is typically discovered in cumulative arrangements.

A worker who has recall rights and who is entitled to termination pay due to the fact that of a layoff of 35 weeks or more might pick to:

- keep their recall rights and not be paid termination pay (or discontinuance wage, if they were entitled to discontinuance wage) at that time; or
- quit their recall rights and receive termination pay (and severance pay, if they were entitled to discontinuance wage).
If a worker is entitled to both termination pay and severance pay, they should make the very same choice for both.

If a worker who is not represented by a trade union elects to keep their recall rights or fails to make a choice, the employer must send the amount of the termination pay (and severance pay, if any) to the Director of Employment Standards, who holds the cash in trust.

If a worker who is represented by a trade union chooses to keep their recall rights or stops working to make a choice, the employer and the trade union need to try to come to a plan to hold the termination pay (and discontinuance wage, if any) in trust for the . If they can not pertain to a plan, and the trade union advises the employer and the Director of Employment Standards in writing that efforts have actually stopped working, the employer needs to send the termination pay (and severance pay, employment if any) to the Director of Employment Standards, who holds the cash in trust.

If a worker picks to give up their recall rights or if the recall rights expire, the cash that is kept in trust needs to be sent to the worker.

If the employee accepts a recall back to work, the cash that is kept in trust will be gone back to the employer.

Exemptions to see of termination or termination pay

A lot of these exemptions are complex. Please call the Employment Standards Information Centre, 1-800-531-5551, if you require more info. Please likewise refer to the unique guideline tool.

The notice of termination and termination pay requirements of the ESA do not apply to a worker who:

- is guilty of wilful misconduct, disobedience or wilful disregard of responsibility that is not insignificant and has not been condoned by the company. Note: "wilful" includes when a worker planned the resulting consequence or employment acted recklessly if they understood or ought to have known the effects their conduct would have. Poor work conduct that is accidental or unintentional is usually not thought about wilful;
- was worked with for a specific length of time or until the conclusion of a specific job. However, such a worker will be entitled to notice of termination or termination pay if:- the employment ends before the term ends or the task is finished; or
- the term expires or the job is not finished more than 12 months after the work started; or
- the work continues for 3 months or more after the term expires or the task is completed;


See also: Employment Standards Self-Service Tool

Wrongful termination

Rights greater than ESA notice of termination, termination pay, severance pay

The rules under the ESA about termination and severance of work are minimum requirements. Some employees might have rights under the typical law that are higher than the rights to discover of termination (or termination pay) and severance pay under the ESA. A worker might wish to sue their previous employer in court for "wrongful dismissal". Employees must be mindful that they can not take legal action against a company for wrongful dismissal and submit a claim for termination pay or severance pay with the ministry for the very same termination or severance of work. A staff member needs to pick one or the other. Employees might want to acquire legal advice worrying their rights.

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Reference: adolphdenny87/jobpanda#31