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Opened Feb 11, 2025 by Aleisha Beacham@aleishabeacham
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Termination Of Employment


A number of expressions are typically used to explain scenarios when work is terminated. These consist of "let go," "released," "dismissed," "fired" and "completely laid off."

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

- dismisses or stops employing a staff member, including where a worker is no longer employed due to the bankruptcy or insolvency of the company;
- "constructively" dismisses a staff member and employment the employee resigns, in response, within a sensible time;
- lays an employee off for a duration that is longer than a "short-term layoff".
Most of the times, when an employer ends the work of a worker who has been continually employed for three months, the company should provide the employee with either composed notification of termination, termination pay or a combination (as long as the notice and the number of weeks of termination pay together equal the length of notification the worker is entitled to get).

The ESA does not require an employer to give an employee a factor why their work is being terminated. There are, however, some scenarios where an employer can not end a staff member's employment even if the company is prepared to provide proper composed notification or termination pay. For instance, an employer can not end somebody's work, or punish them in any other way, if any part of the factor for the termination of work is based upon the staff member asking questions about the ESA or working out a right under the ESA, such as refusing to work in excess of the everyday or weekly hours of work optimums, or taking a leave of absence specified in the ESA. Please see the chapter on reprisals.

Qualifying for termination notice or pay in lieu

Certain staff members are not entitled to observe of termination or termination pay under the ESA. Examples include: employees who are guilty of wilful misbehavior, disobedience, or wilful overlook of task that is not trivial and has actually not been excused by the employer. Other examples include building employees, employees on momentary layoff, workers who refuse an offer of reasonable alternative employment and workers who have actually been utilized less than 3 months.

There are a number of other exemptions to the termination of employment arrangements of the ESA. See "Exemptions to observe of termination or termination pay." Please also refer to the special rule tool.

The termination-of-employment guidelines are entirely separate from any entitlements an employee might need to be paid discontinuance wage under the ESA.

Constructive dismissal

A useful termination might take place when an employer makes a significant modification to an essential term or condition of a worker's work without the worker's real or implied authorization.

For instance, a worker might be constructively dismissed if the company makes modifications to the worker's conditions of work that result in a significant reduction in income or a considerable unfavorable modification in such things as the employee's work area, hours of work, authority, or position. Constructive dismissal might likewise consist of scenarios where an employer harasses or abuses a worker, or an employer gives a staff member an ultimatum to "stop or be fired" and the worker resigns in response.

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

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

Temporary layoff

A worker is on momentary layoff when a company cuts down or stops the staff member's work without ending their employment (for example, laying somebody off at times when there is not enough work to do). The mere truth that the company does not define a recall date when laying the staff member off does not always indicate that the lay-off is not short-term. Note, however, that a lay-off, even if intended to be momentary, might lead to constructive dismissal if it is not enabled by the employment agreement.

For the purposes of the termination arrangements of the ESA, a "week of layoff" is a week in which the worker made less than half of what they would generally make (or makes typically) in a week.

A week of layoff does not include any week in which the worker did not work for one or more days since the staff member was not able or readily available to work, underwent disciplinary suspension, or was not provided with work because of a strike or lockout at their place of employment or somewhere else.

Employers are not required under the ESA to provide staff members with a written notification of a short-lived layoff, nor do they have to supply a factor for the lay-off. (They may, nevertheless, be required to do these things under a collective agreement or an employment agreement.)

Under the ESA, a "momentary 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 duration of 20 consecutive weeks, but less than 35 weeks of layoff in any period of 52 consecutive weeks, where:- the staff member continues to receive substantial payments from the employer; or
- the employer continues to pay for the of the staff member under a genuine group or worker insurance strategy (such as a medical or drug insurance strategy) or a legitimate retirement or pension plan; or
- the worker gets additional unemployment benefits; or
- the employee would be entitled to get supplemental welfare but isn't receiving them due to the fact that they are utilized somewhere else; or
- the employer remembers the worker to work within the time frame approved by the Director of Employment Standards; or
- the company recalls the staff member within the time frame set out in an agreement with an employee who is not represented by a trade union; or



3. a layoff longer than a layoff explained in 'B' where the company remembers a worker who is represented by a trade union within the time set out in a contract between the union and the employer.
If a worker is laid off for a period longer than a short-lived layoff as set out above, the company is thought about to have terminated the staff member's employment. Generally, the worker will then be entitled to termination pay.

Written notice of termination and termination pay

Under the ESA, a company can end the work of a worker who has been employed continually for three months or more if either:

- the employer has given the worker proper composed notice of termination and the notice period has expired
- the employer pays termination pay to the employee where no composed notice or less notice than is required is offered
Written notice of termination

A staff member is entitled to notice of termination (or termination pay rather of notification) if they have actually been constantly utilized for at least 3 months. A person is considered "used" not only while they are actively working, however likewise during whenever in which they are not working however the work relationship still exists (for example, time in which the employee is off sick or on leave or on lay-off).

The amount of notification to which a staff member is entitled depends on their "period of employment". A staff member's period of employment consists of not just perpetuity while the worker is actively working however likewise any time that they are not working however the work relationship still exists, with the following exceptions:

- if a lay-off goes on longer than a temporary lay-off, the employee's work is considered (or considered) to have been terminated on the first day of the lay-off-any time after that does not count as part of the staff member's period of employment, although the staff member may still be employed for employment purposes of the "constantly utilized for 3 months" certification
- if 2 separate periods of work are separated by more than 13 weeks, just the most recent duration counts for purposes of notification of termination
It is possible, in some situations, for a person to have been "continuously used" for 3 months or more and yet have a duration of employment of less than three months. In such circumstances, the employee would be entitled to discover due to the fact that a worker who has actually been continuously employed for at least three months is entitled to notice, and the minimum notice privilege of one week uses to a staff member with a period of work of any length less than one year.

The following chart specifies the amount of notice required:

Note: Special rules determine the amount of notification required when it comes to mass terminations - where the employment of 50 or more employees is ended at an employer's establishment within a four-week period.

Requirements during the statutory notice period

During the statutory notification period, a company should:

- not decrease the staff member's wage rate or alter any other term or condition of employment;
- continue to make whatever contributions would be needed to preserve the worker's advantages plans; and
- pay the worker the earnings they are entitled to, which can not be less than the worker's routine salaries for a regular work week every week.
Regular rate

This is a staff member's rate of pay for each non-overtime hour of work in the staff member's work week.

Regular earnings

These are earnings besides overtime pay, vacation pay, public vacation pay, premium pay, domestic or sexual violence leave pay, termination of project pay, termination pay and severance pay and certain contractual privileges.

Regular work week

For an employee who usually works the very same variety of hours every week, a regular work week is a week of that many hours, not including overtime hours.

Some workers do not have a routine work week. That is, they do not work the exact same variety of hours weekly or they are paid on a basis other than time. For these staff members, the "regular salaries" for a "regular work week" is the average quantity of the routine earnings made by the employee in the weeks in which the worker worked throughout the duration of 12 weeks instantly preceding the date the notification was provided.

A company is not permitted to schedule an employee's holiday time throughout the statutory notification duration unless the employee-after getting composed notification of termination of employment-agrees to take their getaway time during the notice duration.

If a company supplies longer notification than is required, the statutory part of the notice duration is the last part of the period that ends on the date of termination.

How to offer written notice

In most cases, composed notification of termination of employment should be resolved to the worker. It can be provided face to face or by mail, fax or e-mail, as long as shipment can be validated.

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

Because case, the company should post a notification in the workplace (where it will be seen by the employees) setting out the names, seniority and task category of those staff members the employer means to end and the date of the proposed termination. The posting of the notification is considered to be notification of termination, as of the date of the publishing, to a worker who is "bumped" by a worker named in the notice. However, this notice of termination should still satisfy the length requirements set out in the ESA.

There are also unique guidelines concerning how notice is offered when there is a mass termination.

Termination pay

A staff member who does not receive the composed notice required under the ESA needs to be provided termination pay in lieu of notification. Termination pay is a lump amount payment equivalent to the regular incomes for a routine work week that an employee would otherwise have been entitled to throughout the composed notification period. A staff member makes holiday pay on their termination pay. Employers must also continue to make whatever contributions would be required to preserve the benefits the employee would have been entitled to had they continued to be used through the notice period.

Example: Regular work week

Sarah has worked for 3 and a half years. Now her job has been gotten rid of and her employment has been terminated. Sarah was not given any composed notice of termination.

Sarah worked 40 hours a week weekly and was paid $20.00 an hour. She likewise received four per cent getaway pay. Because she worked for more than 3 years but less than four years, she is entitled to three weeks' pay in lieu of notification.

Sarah's routine wages for a regular work week are computed:

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


Her termination pay is calculated:

$ 800.00 X 3 weeks = $2,400.00


Then her trip pay on her termination pay is calculated:

4% of $2,400.00 = $96.00


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

$ 2400.00 + $96.00 = $2,496.00


Result: Sarah is entitled to $2,496.00. The employer should likewise ensure ongoing protection for any advantage or pension that applied to her for 3 weeks.

Example: No regular work week

Gerry has operated at an assisted living home for 4 years. He works each week, however his hours differ from week to week. His rate of pay is $25.00 an hour, and he is paid 6 percent getaway pay.

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

Gerry is entitled to four weeks of termination pay.

Gerry's typical incomes each week are calculated:

$ 1,800.00 for 12 weeks/ 10 weeks (Gerry was off ill for 2 weeks therefore these weeks are not included in the estimation of average earnings) = $180.00 a week


His termination pay is determined:

$ 180.00 × 4 weeks = $720.00


Then his holiday pay on his termination pay is calculated:

6% of $720.00 = $43.20


Finally, his trip pay is contributed to his termination pay:

$ 720.00 + $43.20 = $763.20


Result: Gerry is entitled to $763.20. The employer needs to also guarantee ongoing coverage for any benefit or pension strategies that applied to him for 4 weeks.

When to pay termination pay

Termination pay should be paid to a staff member either seven days after the employee's work is ended or on the employee's next regular pay date, whichever is later on.

Mass termination

Special guidelines for notice of termination might apply in cases of mass termination (when a company is ending 50 or more workers at its facility within a four-week duration).

Meaning of "facility"

An "establishment" is an area at which the employer carries on company. Separate places can be considered one establishment if either:

- they are situated within the exact same town, or
- a worker at one area has legal seniority rights that extend to the other location, enabling the employee to displace another employee (also called "bumping rights").
Effective October 26, 2023, in cases of mass termination, the term "establishment" includes a staff member's home, however only if the employee works from home and does not operate at any other area where the employer continues business.

This will need that employees who work specifically remotely be thought about for addition in the count when identifying whether 50 or more staff members have been terminated.

Note that where a worker carries out work both from their home and from another location where the employer brings on business (for example, an office), their home is not included in the definition of "establishment". Instead, the employee is thought about to have a connection to the workplace place and, for that reason, for the purpose of mass termination, the worker is included with regard to that office place.

Example: where numerous locations are thought about one "facility"

ABC Company has an office and a storage facility located in London, ON. Sabrina lives in London and works for ABC Company exclusively from another location: she performs work for the company from home and does not operate at the office.

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

Employer obligations in a mass termination

When a mass termination occurs, the company needs to complete and deliver the Form 1 (Notice of termination of work) 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 shipment to the Director's workplace, if the delivery can be verified.
The workplace of the Director of Employment Standards is found on the 9th floor, 400 University Avenue, Toronto ON M7A 1T7.

Any notice to the affected workers is ruled out to have been provided until the Form 1 is gotten by the Director; in other words, notification of mass termination is not efficient up until the Director gets the Form 1.

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

- post a copy of the Form 1 supplied to the Director employment in the office where it will pertain to the attention of the impacted employees.
- provide a copy of the Form 1 to each impacted staff member.
The quantity of notification staff members need to get in a mass termination is not based upon the staff members' length of employment, but on the number of workers who have been ended. An employer must offer:

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

The mass termination guidelines do not apply if these two things use:

- the variety of staff members whose work is being terminated represents not more than 10 percent of the workers who have actually been used for a minimum of three months at the establishment
- none of the terminations are brought on by the irreversible discontinuance of all or part of the company's organization at the facility
Mass termination: resignation by an employee

An employee who has actually gotten termination notification under the mass termination guidelines who desires to resign before the termination date supplied in the employer's notification need to provide the company a minimum of one week's written notice of resignation if the worker has been utilized for less than 2 years. If the employment period has been two years or more, the worker should give at least two weeks' composed notice of resignation. However, the worker does not have to provide notice of resignation if the company constructively dismisses the worker or employment breaches a regard to the contract.

Temporary work after termination date in notification

An employer can offer work to a worker who has been provided notice of termination on a momentary basis in the 13-week period after the termination date set out in the notification without affecting the original date of the termination and without being needed to offer any more notice of termination to the worker when the temporary work ends.

If a staff member works beyond the 13-week duration after the termination date and then has their work ended, the staff member will be entitled to a new written notice of termination as if the previous notice had actually never been given. The staff member's duration of work will then also include the duration of short-lived work.

Recall rights

A "recall right" is the right of a staff member on a layoff to be recalled to work by their employer under a term or condition of employment. This right is typically found in cumulative contracts.

An employee who has recall rights and who is entitled to termination pay since 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
- give up their recall rights and receive termination pay (and discontinuance wage, if they were entitled to discontinuance wage).
If a worker is entitled to both termination pay and severance pay, they must make the exact 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 an option, employment the company needs to send the quantity of the termination pay (and severance pay, if any) to the Director employment of Employment Standards, who holds the cash in trust.

If an employee who is represented by a trade union elects to keep their recall rights or stops working to decide, the company 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 employee. If they can not come to an arrangement, and the trade union encourages the company and the Director of Employment Standards in composing that efforts have failed, the company must send out the termination pay (and severance pay, if any) to the Director of Employment Standards, who holds the cash in trust.

If an employee picks to quit their recall rights or if the recall rights expire, the cash that is held in trust must be sent out to the worker.

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

Exemptions to see of termination or termination pay

A number of these exemptions are intricate. Please get in touch with the Employment Standards Information Centre, 1-800-531-5551, if you need more details. Please also refer to the special rule tool.

The notification of termination and termination pay requirements of the ESA do not apply to an employee who:

- is guilty of wilful misconduct, disobedience or wilful disregard of duty that is not unimportant and has not been excused by the company. Note: "wilful" includes when a worker intended the resulting consequence or acted recklessly if they knew or need to have understood the results their conduct would have. Poor work conduct that is accidental or unintentional is generally not considered wilful;
- was hired for a particular length of time or up until the completion of a particular job. However, such an employee will be entitled to discover of termination or termination pay if:- the employment ends before the term expires or the job is completed; or
- the term expires or the job is not completed more than 12 months after the employment started; or
- the work continues for 3 months or more after the term expires or the job is completed;


See also: Employment Standards Self-Service Tool

Wrongful dismissal

Rights higher than ESA notification of termination, termination pay, discontinuance wage

The rules under the ESA about termination and severance of employment are minimum requirements. Some workers may have rights under the common law that are greater than the rights to see of termination (or termination pay) and severance pay under the ESA. A staff member might wish to sue their former employer in court for "wrongful termination". Employees must understand that they can not take legal action against an employer for wrongful dismissal and sue for termination pay or discontinuance wage with the ministry for the same termination or severance of employment. An employee needs to choose one or the other. Employees may want to obtain legal suggestions concerning their rights.

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Reference: aleishabeacham/globalnursingcareers#18