Canadian Employment Laws: Can You Be Fired?

In Canada, employers can fire employees at any time and for any reason. However, there are laws in place to protect employees from wrongful dismissal and to ensure they are treated fairly and with dignity. These laws include requirements for notice periods and severance pay, which vary depending on the employee's contract, length of service, and the province in which they are employed. Employees who feel they have been unjustly terminated can file a complaint under the Canada Labour Code and may also be able to take civil action against their employer.

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Notice requirements for termination

In Canada, employers are not legally required to provide a reason for terminating an employee. However, they must provide written notice of termination to comply with Canadian employment law. This document ensures an unambiguous record of the termination and includes details such as the date of termination, the notice period, and information on severance pay and final pay.

The Canada Labour Code outlines the requirements for individual termination and group terminations of employment. For individual terminations, employers must provide a minimum of two weeks' written notice. For employees with at least three years of service, the minimum notice requirement is one week per completed year of employment, up to a maximum of eight weeks of notice, or the employer can choose to pay the employee their regular wages in lieu of notice.

In the case of group terminations, employers must notify the Labour Program's Head of Compliance and Enforcement in writing at least 16 weeks before the termination takes effect. They must also immediately post the notice in a visible place within the workplace and provide affected employees with a statement of benefits, which includes information on outstanding wages, overtime pay, and general holiday pay owed.

It is important to note that there are some scenarios where employers are not required to give their employees severance pay, reasonable working notice, or termination pay. For example, during a probation period or for employees in casual, temporary, or exempt roles. Additionally, employees in federally regulated industries, such as banking, telecommunications, and transportation, who have worked less than three months can be terminated without notice if the termination aligns with the provisions of the Canada Labour Code.

While each province has its specific employment legislation, most laws concerning minimum standards and minimum notice of termination entitlements are similar.

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Termination

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Termination with cause

To justify a termination with cause, an employer must prove that the employee's conduct was truly inconsistent with their obligations and caused harm to the business, reputation, or customers. This conduct may be a single act, an omission, or a series of acts or omissions. Examples of conduct that may lead to a termination with cause include stealing or embezzling money, violence and workplace harassment (including sexual harassment), disobedience of lawful orders, and discrimination against coworkers, other employees, or the employer.

It is important to note that there is no "three-strikes" rule in Canadian employment law. Whether a termination with cause is justified depends on the specific circumstances of each case, including the employee's position, service, and length of employment. The court will consider the employee's behaviour over the entire fifteen years of their employment, their conduct with managers and other employees, and the specific circumstances of the incident in question.

If an employee believes they have been wrongfully terminated with cause, they can file a complaint under the Canada Labour Code and/or seek civil action against their employer. It is recommended that employees consult an employment lawyer to review their case and determine if their rights have been violated.

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Termination without cause

In Canada, termination without cause occurs when an employer ends an employee's job without specific reasons related to serious workplace misconduct or insubordination (known as termination "for cause"). In other words, termination without cause means that an employee is terminated for any reason other than workplace misconduct.

In Canada, employers are not legally required to provide a reason for terminating an employee. However, the reason for termination will be recorded in an employee's record, which can be accessed through Service Canada. Employers are required to provide written notice of termination to comply with Canadian employment law. This document includes the date of termination, the notice period or confirmation of pay instead of notice, information on any severance pay, and details on how and when the terminated employee will receive their final pay.

If you are terminated without cause and do not receive proper notice or severance pay, you may have a wrongful dismissal claim. In such cases, it is important to seek legal advice to determine your options and protect your rights. Employees terminated without cause are typically eligible for Employment Insurance (EI) benefits. To qualify for regular EI, employees must have lost their job through no fault of their own and meet certain other requirements, such as having worked enough insurable hours.

The amount of notice or severance pay that employees are entitled to upon termination without cause varies depending on the province and the specific circumstances. In most cases, employers are legally required to provide either notice of termination or pay in lieu of notice. The minimum notice period is typically one week, increasing according to the number of years of service the employee has worked for the employer. If the employer cannot provide reasonable notice, they must provide payment in lieu of notice, often called a severance package. In some cases, a combination of notice and severance package may be provided.

Severance pay

In Canada, employers are not legally required to provide a reason for terminating an employee. However, the reason for termination will be recorded in the employee's record, which can be accessed through Service Canada. If an employee files a complaint about their termination, the employer may be required to justify their actions.

While the specific employment legislation differs across Canadian provinces, most laws concerning minimum standards and minimum notice of termination entitlements are similar. In most cases, employers are legally required to provide either notice of termination or pay in lieu of notice. This allows the employee to continue working during the notice period or receive compensation for lack of notice.

In the case of individual termination, the employer must provide the employee with a minimum of two weeks' written notice. For an employee who has completed at least three years of service, the minimum notice requirement is one week per year of employment, up to a maximum of eight weeks of notice. Alternatively, the employer may pay the employee their regular wages in lieu of notice.

Employees who have completed at least 12 consecutive months of continuous employment are entitled to severance pay. The amount of severance pay is typically calculated as two days' wages for each full year worked, or five days' wages at the employee's regular rate. The severance package may also include other benefits, such as vacation pay, to ensure the employee is fairly compensated.

There are some scenarios in which employers are not required to provide severance pay, reasonable working notice, or termination pay. For example, during a probationary period, or for employees in casual, temporary, or exempt roles. Additionally, employees in federally regulated industries, such as banking, telecommunications, and transportation, who have worked for less than three months, can be terminated without notice if the termination aligns with the provisions of the Canada Labour Code.

It is important to note that the concept of "at-will" employment, common in the United States, does not exist in Canada. Canadian employees are protected by laws that require employers to follow specific procedures before terminating an employee. These laws ensure that employers cannot simply fire employees without providing severance pay or reasonable notice.

Wrongful dismissal

In Canada, wrongful dismissal is based on two conditions: whether the worker was dismissed fairly, and whether the worker was adequately compensated. In law, wrongful dismissal, also called wrongful termination or wrongful discharge, is a situation in which an employee's contract of employment has been terminated by the employer, where the termination breaches one or more terms of the contract of employment, or a statute provision or rule in employment law.

There are two basic types of dismissals or terminations: dismissal with cause and termination without cause. An example of cause would be an employee's behaviour, which constitutes a fundamental breach of the terms of the employment contract. Where cause exists, the employer can dismiss the employee without providing any notice. If no cause exists, yet the employer dismisses without providing lawful notice, then the dismissal is a wrongful dismissal.

In the case of a wrongful dismissal, the employee can claim monetary damages in an amount that compensates them for the wages, commissions, bonuses, profit sharing and other such emoluments they would have earned or received during the lawful notice period, minus earnings from new employment obtained during the lawful notice period.

In Canada, certain jobs or industries may allow for termination without notice, such as during a probation period or for employees in casual, temporary, or exempt roles. During most employees' probation periods, employers can terminate employees without notice or severance pay. However, this must be written into the employment contract for it to be legally binding.

The Canada Labour Code outlines the requirements for the termination of employees, and there are different requirements for individual and group terminations. Employers are required to provide written notice of termination to comply with Canadian employment law. This document ensures there is a clear, unambiguous record of the termination. It includes the date of termination, the notice period or confirmation of pay instead of notice, information on any severance pay, and details on how and when the terminated employee will receive their final pay.

If an employee believes they have been wrongfully dismissed, they can file an unjust dismissal complaint with the Labour Program. The Labour Program's Head of Compliance and Enforcement may request in writing that the employer provide a written statement giving the reasons for the dismissal. It is the employer's responsibility to demonstrate that the dismissal was for valid reasons. The Labour Program will first attempt to resolve the complaint, which may include assisting the parties to settle the complaint through mediation. If the parties choose not to participate in mediation or cannot resolve the complaint, the Head of Compliance and Enforcement will send the complaint to the Canada Industrial Relations Board, which will hear the matter and make a determination.

Frequently asked questions