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Wrongful Dismissal Lawyer
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How Much Severance Are You Owed?

Most terminated Ontario employees are owed far more than the statutory minimums their employer offers. Here is how common law notice actually works, and how to find out what your dismissal is really worth.

⚖️By Ryan Manilla, JD — Founder & Managing Lawyer
📅Updated September 2026
⏱️15 min read
📍Ontario Law
Ryan Manilla, Founder & Managing Lawyer
Ryan Manilla, BA, JD
Founder & Managing Lawyer · Barrister, Solicitor & Notary Public. Osgoode Hall & Harvard Law. Called to the Ontario Bar in 2008.
✓ Lawyer Reviewed
Quick Answer

Most non-unionized Ontario employees terminated without cause are entitled to "common law" reasonable notice, which is typically two to four times higher than the Employment Standards Act minimums and can reach up to roughly 24 months for long-service, senior employees. Courts calculate common law notice using the Bardal factors — age, length of service, position, and the availability of similar employment. You generally have two years from termination to bring a claim.

📋 Key Takeaways
  • Common law notice is calculated using the Bardal factors: age, length of service, character of the position, and availability of similar employment.
  • For most employees with 3+ years of service, common law entitlements are typically 2 to 4 times higher than the ESA statutory minimums.
  • ESA minimums alone are capped at 8 weeks of termination pay and up to 26 weeks of severance pay for qualifying employees — common law notice is calculated completely separately and is usually far more generous.
  • Common law notice can reach up to roughly 24 months for senior, long-service employees, though there is no fixed formula.
  • If you left secure employment to join the employer, courts may award additional "inducement" notice.
  • You generally have two years from the date of termination to bring a wrongful dismissal claim.

What Counts as Wrongful Dismissal?

Wrongful dismissal does not mean your employer needed a good reason to let you go — Ontario is largely an at-will employment jurisdiction. It means your employer terminated you without providing adequate notice or pay in lieu of notice, whether that is the bare statutory minimum under the Employment Standards Act, or the far more significant "common law" entitlement that applies to most non-unionized employees.

ESA Minimums vs. Common Law Notice

Ontario's Employment Standards Act (ESA) sets statutory minimums: up to 8 weeks of termination pay based on length of service, and for qualifying employees at larger employers, up to an additional 26 weeks of severance pay. Many employers offer only these minimums — but they are a floor, not the full picture.

Separately, the common law implies a right to reasonable notice of termination into most employment relationships, absent an enforceable contractual term limiting it. For employees with three or more years of service, common law entitlements typically run two to four times higher than the ESA minimums alone.

SourceMaximumBasis
ESA termination pay8 weeksLength of service (statutory formula)
ESA severance pay26 weeks (qualifying employees)Length of service, employer payroll size
Common law noticeUp to ~24 months (no fixed cap)Bardal factors — no fixed formula

The Bardal Factors

Courts calculate common law notice using the factors from the leading case Bardal v. Globe and Mail Ltd.: your age, your length of service, the character of your position (a senior executive typically requires more notice than an entry-level role), and the availability of similar employment given your experience and the state of the job market. There is no fixed formula — every case turns on the specific combination of these factors.

💡 Pro Tip

If you left secure, long-term employment specifically to join this employer, courts may award additional "inducement" notice — a factor many employees do not realize applies to them.

Was the Termination "For Cause"?

An employer can avoid paying notice entirely only where it has just cause — a high bar requiring serious misconduct such as theft, fraud, or a fundamental breach of the employment relationship. Poor performance, personality conflicts, or a single mistake rarely meet this threshold. Many terminations labelled "for cause" by employers do not actually hold up to scrutiny, and are worth challenging.

Your Duty to Mitigate

Dismissed employees are generally required to make reasonable efforts to find comparable new employment. Income earned from a new job during what would have been your notice period is typically deducted from your wrongful dismissal damages — so documenting your job search from day one protects your claim.

📌 Practical Example

A 52-year-old Toronto manager with 14 years of service is terminated without cause and offered only the ESA-minimum severance of roughly 12 weeks. Given her age, seniority, and length of service, her realistic common law entitlement may be in the range of 14 to 18 months — many multiples of what was initially offered.

Your Limitation Period

You generally have two years from the date of termination to bring a wrongful dismissal claim under Ontario's Limitations Act. See our full guide to limitation periods for civil claims for how discoverability can affect this deadline.

What to Do After Being Let Go

  1. Do not sign a release immediately. Once signed, a release can permanently bar further claims — have it reviewed first.
  2. Gather your documents. Your employment contract, any offer letter, and the termination letter itself.
  3. Get a free consultation. We assess your realistic common law entitlement before you respond to any offer.
  4. Negotiate or litigate. Most wrongful dismissal claims settle through negotiation; we are prepared to file suit where an employer will not offer a fair resolution.
📞 Free Consultation

Call our Toronto wrongful dismissal lawyers at 416-274-2222 before you sign anything.


Frequently Asked Questions

What is the difference between ESA severance and common law severance?

The Employment Standards Act sets bare statutory minimums — up to 8 weeks of termination pay and, for qualifying employees, up to 26 weeks of severance pay. Common law "reasonable notice" is a separate, judge-made entitlement calculated using the Bardal factors, and for most employees with meaningful service it is substantially higher than the ESA minimums alone.

How much notice am I entitled to?

There is no fixed formula — courts weigh your age, length of service, the nature and seniority of your position, and how easily you could find comparable employment. As a general (not universal) guideline, many employees receive roughly one month of notice per year of service, though this varies significantly by circumstance and can be higher or lower.

Can I be fired without any severance at all?

Only if the employer has "just cause" for termination — a high legal bar requiring serious misconduct, not simply poor performance or a personality conflict. Most terminations are "without cause," which requires the employer to provide notice or pay in lieu.

What is my "duty to mitigate"?

You are generally required to make reasonable efforts to find comparable new employment after termination. Income earned during what would have been your notice period is typically deducted from your wrongful dismissal damages, so keeping records of your job search matters.

I signed a termination letter — can I still sue?

Possibly. Many termination or employment contract clauses limiting notice to ESA minimums are unenforceable if they do not comply precisely with the Employment Standards Act. We review your contract and termination documents before assuming your rights were validly limited.

How long do I have to bring a wrongful dismissal claim?

Generally two years from the date of termination, under Ontario's Limitations Act. Acting promptly also helps preserve evidence and strengthens your negotiating position, so it is worth getting advice well before that deadline.

Should I sue in Small Claims Court or Superior Court?

It depends on the value of your claim. Wrongful dismissal damages for a longer-service or senior employee often exceed the $50,000 Small Claims Court limit, in which case the Superior Court of Justice is the appropriate venue.


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