Employee termination can be a difficult situation for employers to navigate; however, it is often a necessary component to the ongoing success of a business. This article explores what termination without cause looks like in Ontario and how employers can ensure they handle these terminations in compliance with Ontario legislation.
What is termination without cause?
Termination without cause is when an employer terminates an employee without providing them with a reason for being let go. Ontario’s Employment Standards Act (ESA) does not require employers to provide a reason for dismissing employees; however, employers must give reasonable notice or pay in lieu of notice–if the employee has been employed for more than three months.
Although employers have the right to terminate an employee without cause, they must be careful they are not terminating them on grounds protected by the Ontario Human Rights Code or the ESA.
Is there risk involved in a termination without cause?
The risk for employers in termination without cause, is the employee can sue for wrongful dismissal. To avoid such a scenario, employers must provide the employee with termination notice, severance pay, or a combination of both.
Still have questions on termination without cause?
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