Wrongful dismissal (not to be confused with constructive dismissal) is when an employer terminates an employee without “cause” and without proper notice of termination or severance pay in lieu of notice. The below is also expressly subject to the terms of the employment agreement between employer and employee.
To be clear, employers generally have a right to terminate an employee’s employment for any reason (without cause) but they have to follow the correct approach to termination including proper notice of termination or severance pay in lieu of notice.
Unless an employer can prove serious misconduct, they must provide either: (1) offer reasonable working notice of the termination, or (2) severance (pay in lieu of notice). Therefore, even a lay off because an employer may not have enough work for the employee could still be considered “wrongful dismissal”.
While employment standards legislation sets minimum notice requirements, Canadian courts often award much higher amounts, especially for professionals, managers, or long-service employees. Common-law severance is based on factors such as age, length of service, position, and how difficult it will be to find comparable work.
Many employees accept severance offers that are far below their true entitlement, often because employers rely on statutory minimums or poorly drafted employment contracts.
If you’ve been terminated and offered only a small package, you may actually be entitled to far more based on the above factors.
Disclaimer: This article is provided for general legal information only and does not constitute legal advice. Employment law varies by province and depends heavily on individual circumstances. Reading or relying on this content does not create a lawyer-client relationship. For advice specific to your situation, consult a qualified employment lawyer in your jurisdiction.