Termination Without Cause: What You Need to Know

Termination Without Cause: What You Need to Know
Losing your job can be stressful, especially when it's not your fault. This leaves you with lots of questions and important decisions to make. Usually, when you're let go from your job, your employer will ask you to sign some papers. As an employee, you should know what your rights and duties are and what's expected of you. This article is a guide for Ontario employees in this situation, explaining your rights, what it all means, and what to do after you're let go without a reason.What Does It Mean to Be Terminated Without Cause?Being terminated without cause in Ontario employment law means losing your job not because of misconduct or poor performance, but possibly due to company restructuring, downsizing, or external factors.Is it possible to be terminated without cause in Ontario?Before we delve into the discussion about termination without cause in Ontario, let's first clarify whether it's legal to terminate an employee without cause. In short, yes, it is legal. Employers in Ontario have the authority to end an employee's employment without specifying a reason. However, they must provide advance notice or offer compensation in lieu of notice when terminating the employee.It's important to note that there are constraints on an employer's ability to terminate without cause. Employers cannot terminate employees for discriminatory reasons as outlined in the Ontario Human Rights Code, as a retaliation for employees asserting certain rights like the right to a safe work environment under the Ontario Health and Safety Act, or in exceptionally problematic situations. In such instances, the termination is considered illegal, and you may be eligible for compensation.Is it possible to qualify for Employment Insurance (EI) if I've experienced a termination without cause?Typically, EI is accessible to employees who have been terminated without cause. Nevertheless, it's important to note that EI eligibility varies based on employment status. Independent contractors, for instance, are not eligible for EI benefits, regardless of the circumstances surrounding the end of their working relationship. If you don't fall under the categories of workers excluded from EI due to your employment type, it's highly likely that you are entitled to EI benefits in the event of a termination without cause.Legal Implications and Employee Rights
Hand holding a gavel, bringing it down on a pile of money drawn in chalk; image by jcomp, via Freepik.com.
Written confirmation of termination
Monetary offer
Detailed instructions related to your benefits and pension plan
Release document: This document asserts that you will not pursue legal action against your employer for issues related to your employment or its termination.

About Roberts & Obradovic
Roberts & Obradovic is a Toronto-based business law firm with a proven track record of assisting various businesses in successfully handling intricate transactions, the firm is committed to safeguarding their clients' interests.