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A variety of expressions are typically utilized to explain situations when employment is ended. These consist of "release," "released," "dismissed," "fired" and "completely laid off."

Under the Employment Standards Act, 2000 (ESA) an individual's employment is ended if the employer:

- dismisses or stops utilizing an employee, including where an employee is no longer utilized due to the insolvency or insolvency of the company;
- "constructively" dismisses an employee and the worker resigns, in action, within a reasonable time;
- lays an employee off for a period that is longer than a "temporary layoff".
In a lot of cases, when an employer ends the work of a worker who has actually been continually utilized for 3 months, the employer should offer the staff member with either written notification of termination, termination pay or a combination (as long as the notification and the variety of weeks of termination pay together equivalent the length of notice the staff member is entitled to get).

The ESA does not need a company to provide an employee a reason that their work is being terminated. There are, however, some circumstances where a company can not terminate an employee's employment even if the employer is prepared to give correct written notification or termination pay. For example, a company can not end someone's work, or punish them in any other method, if any part of the factor for the termination of employment is based upon the employee asking questions about the ESA or working out a right under the ESA, such as refusing to work in excess of the day-to-day or weekly hours of work maximums, or taking a leave of absence defined in the ESA. Please see the chapter on reprisals.

Getting approved for termination notification or pay in lieu

Certain workers are not entitled to discover of termination or termination pay under the ESA. Examples include: employees who are guilty of wilful misbehavior, disobedience, or wilful neglect of responsibility that is not minor and has not been excused by the company. Other examples consist of construction employees, workers on short-term layoff, employees who refuse a deal of reasonable alternative employment and employees who have been utilized less than 3 months.

There are a variety of other exemptions to the termination of employment arrangements of the ESA. See "Exemptions to discover of termination or termination pay." Please likewise refer to the unique guideline tool.

The termination-of-employment rules are completely different from any entitlements a worker may need to be paid discontinuance wage under the ESA.

Constructive termination

A constructive dismissal might occur when an employer makes a considerable change to a basic term or condition of a worker's employment without the worker's actual or implied permission.

For instance, a staff member may be constructively dismissed if the company makes modifications to the staff member's terms of work that result in a significant reduction in wage or a significant unfavorable modification in such things as the employee's work location, hours of work, authority, or position. Constructive termination may also consist of circumstances where a company pesters or abuses an employee, or an employer provides a staff member a final notice to "quit or be fired" and the employee resigns in response.

The staff member would have to resign in reaction to the change within a reasonable amount of time in order for the employer's actions to be considered a termination of work for purposes of the ESA.

Constructive termination is a complex and tough topic. For more details on constructive termination, please call the Employment Standards Information Centre at 1-800-531-5551.

Temporary layoff

A worker is on temporary layoff when a company cuts back or stops the worker's work without ending their work (for example, laying someone off at times when there is inadequate work to do). The simple fact that the company does not define a recall date when laying the worker off does not always imply that the lay-off is not momentary. Note, however, that a lay-off, even if to be short-lived, may result in useful termination if it is not permitted by the employment agreement.

For the purposes of the termination provisions of the ESA, a "week of layoff" is a week in which the worker made less than half of what they would generally make (or earns on average) in a week.

A week of layoff does not consist of any week in which the worker did not work for one or more days due to the fact that the worker was not able or available to work, went through disciplinary suspension, or was not provided with work due to the fact that of a strike or lockout at their place of employment or somewhere else.

Employers are not needed under the ESA to supply workers with a composed notice of a momentary layoff, nor do they have to provide a factor for the lay-off. (They may, nevertheless, be required to do these things under a cumulative contract or a work contract.)

Under the ESA, a "temporary layoff" can last:

1. not more than 13 weeks of layoff in any period of 20 successive weeks; or
2. more than 13 weeks in any duration of 20 successive weeks, but less than 35 weeks of layoff in any period of 52 successive weeks, where:- the staff member continues to receive considerable payments from the employer; or
- the employer continues to make payments for the benefit of the staff member under a genuine group or employee insurance coverage plan (such as a medical or drug insurance plan) or a genuine retirement or pension; or
- the worker gets supplemental joblessness advantages; or
- the employee would be entitled to receive additional welfare however isn't receiving them due to the fact that they are used elsewhere; or
- the company recalls the staff member to work within the time frame authorized by the Director of Employment Standards; or
- the employer recalls the staff member within the time frame set out in an arrangement with a staff member who is not represented by a trade union; or



3. a layoff longer than a layoff explained in 'B' where the company recalls an employee who is represented by a trade union within the time set out in a contract between the union and the company.
If an employee is laid off for a duration longer than a momentary layoff as set out above, the company is thought about to have actually terminated the staff member's work. Generally, the staff member will then be entitled to termination pay.

Written notification of termination and termination pay

Under the ESA, a company can end the work of a staff member who has been utilized continuously for 3 months or more if either:

- the employer has actually provided the worker correct written notice of termination and the notice period has expired
- the employer pays termination pay to the employee where no composed notice or less notice than is required is given
Written notice of termination

An employee is entitled to notice of termination (or termination pay rather of notice) if they have been continually utilized for at least three months. A person is considered "utilized" not just while they are actively working, but also throughout any time in which they are not working however the employment relationship still exists (for instance, time in which the employee is off ill or on leave or on lay-off).

The quantity of notice to which a staff member is entitled depends on their "duration of work". A staff member's period of employment includes not just all time while the employee is actively working however likewise any time that they are not working however the work relationship still exists, with the following exceptions:

- if a lay-off goes on longer than a temporary lay-off, the employee's work is deemed (or thought about) to have actually been terminated on the very first day of the lay-off-any time after that does not count as part of the employee's period of employment, despite the fact that the employee may still be used for purposes of the "constantly employed for three months" qualification
- if two different durations of employment are separated by more than 13 weeks, just the most current duration counts for functions of notification of termination
It is possible, in some circumstances, for an individual to have been "continually used" for three months or more and yet have a duration of work of less than 3 months. In such scenarios, the worker would be entitled to see due to the fact that a worker who has been constantly used for at least three months is entitled to see, classifieds.ocala-news.com and the minimum notice entitlement of one week applies to a worker with a period of employment of any length less than one year.

The following chart specifies the quantity of notification needed:

Note: Special rules determine the amount of notice required in the case of mass terminations - where the work of 50 or more employees is terminated at a company's facility within a four-week duration.

Requirements throughout the statutory notice duration

During the statutory notice duration, an employer must:

- not reduce the worker's wage rate or modify any other term or condition of employment;
- continue to make whatever contributions would be required to preserve the staff member's benefits strategies; and
- pay the staff member the wages they are entitled to, which can not be less than the staff member's regular earnings for a regular work week weekly.
Regular rate

This is a staff member's rate of pay for each non-overtime hour of operate in the staff member's work week.

Regular wages

These are earnings aside from overtime pay, getaway pay, public vacation pay, premium pay, domestic or sexual violence leave pay, termination of task pay, termination pay and severance pay and certain contractual entitlements.

Regular work week

For an employee who usually works the same variety of hours each week, a regular work week is a week of that numerous hours, not consisting of overtime hours.

Some staff members do not have a routine work week. That is, they do not work the very same number of hours weekly or they are paid on a basis besides time. For these staff members, the "regular salaries" for a "routine work week" is the typical amount of the regular earnings made by the staff member in the weeks in which the staff member worked throughout the duration of 12 weeks right away preceding the date the notice was offered.

An employer is not enabled to set up a staff member's holiday time throughout the statutory notice duration unless the employee-after getting written notification of termination of employment-agrees to take their getaway time throughout the notification duration.

If a company offers longer notification than is required, the statutory part of the notification duration is the last part of the period that ends on the date of termination.

How to offer written notice

For the most part, composed notification of termination of employment should be resolved to the worker. It can be provided in individual or by mail, fax or email, as long as delivery can be confirmed.

There are special guidelines for providing notice of termination if a staff member has an agreement of work or a collective agreement that provides seniority rights that allow a worker who is to be laid off or whose employment is to be ended to displace (" bump") other workers.

In that case, the company needs to post a notice in the office (where it will be seen by the workers) setting out the names, seniority and job classification of those employees the company intends to end and the date of the proposed termination. The posting of the notification is considered to be notice of termination, since the date of the posting, to a staff member who is "bumped" by a worker named in the notification. However, this notification of termination must still fulfill the length requirements set out in the ESA.

There are also special guidelines concerning how notice is supplied when there is a mass termination.

Termination pay

An employee who does not get the written notice required under the ESA should be given termination pay in lieu of notification. Termination pay is a swelling amount payment equal to the routine incomes for a routine work week that a worker would otherwise have been entitled to throughout the composed notification period. A worker earns getaway pay on their termination pay. Employers need to likewise continue to make whatever contributions would be needed to maintain the benefits the worker would have been entitled to had they continued to be used through the notification duration.

Example: Regular work week

Sarah has worked for three and a half years. Now her job has been gotten rid of and her work has actually been ended. Sarah was not offered any written notification of termination.

Sarah worked 40 hours a week weekly and was paid $20.00 an hour. She also got four percent trip pay. Because she worked for more than three years but less than 4 years, she is entitled to three weeks' pay in lieu of notification.

Sarah's regular earnings for a regular work week are calculated:

$ 20.00 an hour X 40 hours a week = $800.00 a week


Her termination pay is computed:

$ 800.00 X 3 weeks = $2,400.00


Then her vacation pay on her termination pay is computed:

4% of $2,400.00 = $96.00


Finally, her trip pay is added to her termination pay:

$ 2400.00 + $96.00 = $2,496.00


Result: Sarah is entitled to $2,496.00. The employer must likewise ensure continued coverage for any advantage or pension that applied to her for 3 weeks.

Example: No regular work week

Gerry has operated at a retirement home for 4 years. He works weekly, but his hours differ from week to week. His rate of pay is $25.00 an hour, and he is paid 6 per cent holiday pay.

Gerry's employer removed his position and did not give Gerry any composed notice of termination. Gerry was ill and off work for 2 of the 12 weeks immediately preceding the day his work was terminated. Gerry made $1,800.00 in the 12 weeks before the day on which his work ended.

Gerry is entitled to 4 weeks of termination pay.

Gerry's typical revenues each week are calculated:

$ 1,800.00 for 12 weeks/ 10 weeks (Gerry was off ill for 2 weeks therefore these weeks are not included in the calculation of typical earnings) = $180.00 a week


His termination pay is computed:

$ 180.00 × 4 weeks = $720.00


Then his holiday pay on his termination pay is calculated:

6% of $720.00 = $43.20


Finally, his holiday pay is contributed to his termination pay:

$ 720.00 + $43.20 = $763.20


Result: Gerry is entitled to $763.20. The employer needs to also ensure continued coverage for any advantage or pension that used to him for 4 weeks.

When to pay termination pay

Termination pay need to be paid to a worker either seven days after the employee's work is ended or on the employee's next routine pay date, whichever is later.

Mass termination

Special rules for notice of termination might apply in cases of mass termination (when an employer is ending 50 or more employees at its establishment within a four-week duration).

Meaning of "facility"

An "establishment" is a location at which the employer continues organization. Separate areas can be considered one facility if either:

- they are situated within the same town, or
- a staff member at one place has legal seniority rights that encompass the other area, enabling the staff member to displace another worker (likewise called "bumping rights").
Effective October 26, 2023, in cases of mass termination, the term "facility" consists of a staff member's home, but only if the worker works from home and does not work at any other location where the employer continues company.

This will require that employees who work specifically from another location be thought about for addition in the count when identifying whether 50 or more workers have actually been terminated.

Note that where a worker carries out work both from their home and from another place where the company continues organization (for instance, a workplace), their home is not consisted of in the meaning of "facility". Instead, the worker is thought about to have a connection to the office area and, therefore, for the purpose of mass termination, the worker is included with regard to that workplace area.

Example: where numerous locations are thought about one "facility"

ABC Company has a workplace and a warehouse situated in London, ON. Sabrina resides in London and works for ABC Company solely remotely: she carries out work for the company from home and does not operate at the workplace.

For the function of mass termination, the business's London office, London storage facility and Sabrina's London home are considered one "establishment."

Employer obligations in a mass termination

When a mass termination occurs, the employer must finish and deliver the Form 1 (Notice of termination of work) to the Director of Employment Standards (Director) by:

- email to esa_form1_notice@ontario.ca.
- fax to (416) 326-7061.
- individual delivery to the Director's office on a day and at a time when it is open.
- mail shipment to the Director's workplace, if the delivery can be validated.
The workplace of the Director of Employment Standards is found on the 9th flooring, 400 University Avenue, Toronto ON M7A 1T7.

Any notification to the affected employees is ruled out to have actually been given up until the Form 1 is gotten by the Director; to put it simply, notification of mass termination is ineffective till the Director receives the Form 1.

In addition to offering employees with private notifications of termination, the employer must, on the first day of the notification period:

- post a copy of the Form 1 offered to the Director in the office where it will concern the attention of the impacted staff members.
- supply a copy of the Form 1 to each affected worker.
The quantity of notice workers must get in a mass termination is not based on the workers' length of employment, but on the number of workers who have actually been ended. An employer needs to provide:

- 8 weeks notice if the employment of 50 to 199 staff members is to be terminated
- 12 weeks notice if the work of 200 to 499 workers is to be ended
- 16 weeks see if the employment of 500 or more employees is to be ended
Exception to the mass termination rules

The mass termination guidelines do not apply if these two things use:

- the variety of workers whose work is being ended represents not more than 10 percent of the employees who have actually been utilized for at least 3 months at the facility
- none of the terminations are triggered by the permanent discontinuance of all or part of the employer's company at the establishment
Mass termination: resignation by an employee

An employee who has received termination notice under the mass termination guidelines who wishes to resign before the termination date supplied in the company's notice should provide the employer a minimum of one week's written notice of resignation if the employee has been utilized for less than two years. If the employment period has actually been two years or more, the staff member must give at least 2 weeks' written notification of resignation. However, the staff member does not have to notify of resignation if the company constructively dismisses the employee or breaches a term of the agreement.

Temporary work after termination date in notice

A company can supply work to an employee who has been offered notice of termination on a temporary basis in the 13-week duration after the termination date set out in the notice without affecting the original date of the termination and without being needed to supply any more notification of termination to the staff member when the short-lived work ends.

If a worker works beyond the 13-week duration after the termination date and then has their work terminated, the employee will be entitled to a brand-new composed notification of termination as if the previous notice had never been given. The worker's duration of employment will then likewise consist of the duration of momentary work.

Recall rights

A "recall right" is the right of a staff member on a layoff to be called back to work by their company under a term or condition of employment. This right is commonly found in collective arrangements.

A worker who has recall rights and who is entitled to termination pay since of a layoff of 35 weeks or more may pick to:

- keep their recall rights and not be paid termination pay (or severance pay, if they were entitled to severance pay) at that time; or
- provide up their recall rights and receive termination pay (and discontinuance wage, if they were entitled to severance pay).
If a staff member is entitled to both termination pay and severance pay, they must make the same option for both.

If a worker who is not represented by a trade union elects to keep their recall rights or fails to make a choice, the employer must send the quantity of the termination pay (and severance pay, if any) to the Director of Employment Standards, who holds the cash in trust.

If a worker who is represented by a trade union chooses to keep their recall rights or fails to decide, the company and the trade union must attempt to come to a plan to hold the termination pay (and severance pay, if any) in trust for the worker. If they can not pertain to an arrangement, and the trade union advises the employer and the Director of Employment Standards in composing that efforts have failed, the employer must send out the termination pay (and severance pay, if any) to the Director of Employment Standards, who holds the cash in trust.

If a staff member selects to quit their recall rights or if the recall rights end, the money that is held in trust should be sent to the staff member.

If the worker accepts a recall back to work, the money that is kept in trust will be returned to the employer.

Exemptions to see of termination or termination pay

Much of these exemptions are complex. Please call the Employment Standards Information Centre, 1-800-531-5551, if you require more details. Please also refer to the unique rule tool.

The notification of termination and termination pay requirements of the ESA do not use to a staff member who:

- is guilty of wilful misconduct, disobedience or wilful overlook of task that is not minor and has actually not been condoned by the company. Note: "wilful" includes when a worker meant the resulting effect or acted recklessly if they understood or ought to have understood the effects their conduct would have. Poor work conduct that is accidental or unintentional is generally not thought about wilful;
- was hired for a particular length of time or till the conclusion of a particular task. However, such a worker will be entitled to observe of termination or termination pay if:- the employment ends before the term expires or the task is completed; or
- the term ends or the job is not finished more than 12 months after the work began; or
- the work continues for three months or more after the term ends or the task is finished;


See also: Employment Standards Self-Service Tool

Wrongful dismissal

Rights higher than ESA notification of termination, termination pay, severance pay

The rules under the ESA about termination and severance of work are minimum requirements. Some workers might have rights under the typical law that are greater than the rights to notice of termination (or termination pay) and discontinuance wage under the ESA. An employee may desire to sue their previous company in court for "wrongful termination". Employees need to be aware that they can not sue an employer for wrongful termination and submit a claim for termination pay or discontinuance wage with the ministry for the exact same termination or severance of work. An employee needs to choose one or the other. Employees might want to obtain legal recommendations worrying their rights.