How much notice do I have to give when ending employment in Ontario?
Written by For Founders Law, a Toronto firm licensed by the Law Society of Ontario. About us
Short answer
Under Ontario's Employment Standards Act, an employee employed for three months or more is entitled to written notice or termination pay of one week for less than a year of service, two weeks from one to under three years, and then one week per year of service up to eight weeks. Severance pay of a week per year, up to 26 weeks, is added for employees with five or more years if the employer's payroll is at least $2.5 million. Unless a valid termination clause limits it, the employee may also be owed reasonable notice at common law, which is often considerably more.
There are two layers to the answer: the ESA minimum, which always applies, and common law reasonable notice, which applies unless a valid contract limits it.
What is the ESA minimum?
From Ontario’s ESA guide on termination:
| Period of employment | Notice or termination pay |
|---|---|
| Less than 3 months | None required by the ESA |
| 3 months to less than 1 year | 1 week |
| 1 year to less than 3 years | 2 weeks |
| 3 to less than 4 years | 3 weeks |
| 4 to less than 5 years | 4 weeks |
| 5 to less than 6 years | 5 weeks |
| 6 to less than 7 years | 6 weeks |
| 7 to less than 8 years | 7 weeks |
| 8 years or more | 8 weeks |
You can give working notice in writing, pay in lieu, or a combination. Benefit plan contributions must continue through the statutory notice period. Different rules apply to mass terminations of 50 or more employees.
When is severance pay owed?
Separately from notice, if the employee has five or more years of employment and the employer has a payroll of at least $2.5 million, or severs 50 or more employees in six months because all or part of the business permanently closes. It’s the employee’s regular weekly wages times years and months of service, up to 26 weeks. See the severance pay guide.
What is common law reasonable notice?
If there’s no enforceable termination clause, a court decides what notice is reasonable based on factors such as the employee’s age, length of service, role, and the availability of similar work. It’s generally well above the ESA minimum, and less predictable. That’s why a valid termination clause matters. See what a termination clause must say.
When is no notice required?
The ESA regulations (O. Reg. 288/01, s. 2) list exceptions, including an employee guilty of wilful misconduct, disobedience or wilful neglect of duty that is not trivial and hasn’t been condoned, and employees hired for a definite term or task that has ended. Common law just cause is a separate and high standard. Ending employment “for cause” without strong grounds is one of the most expensive mistakes an employer can make.
What else do I owe at termination?
All wages and vacation pay owing, and a Record of Employment for Service Canada. For employees with stock options, the option plan and grant agreement decide what happens to vested and unvested options, but they can’t cut off what the ESA requires during the statutory notice period, and courts look closely at whether plan wording clearly limits any common law claim for options that would have vested during reasonable notice (see Matthews v. Ocean Nutrition Canada Ltd., 2020 SCC 26, on incentive pay during the notice period). Review the plan before setting a termination date.
Can I check the numbers?
Ontario’s Employment Standards self-service tool estimates ESA entitlements. It doesn’t calculate common law notice.
What to do next
Our employment agreement template includes ESA-compliant termination terms, at a fixed fee on our fees page.
This guide is general information about Ontario law, not legal advice for your situation. Before ending someone’s employment, book a free 15-minute consult.
Sources
- Employment Standards Act, 2000 (Ontario), ss. 54 to 61 (notice and termination pay), ss. 63 to 66 (severance pay)
- O. Reg. 288/01 under the ESA (termination and severance), s. 2 (employees not entitled to notice)
- Ontario: Your guide to the Employment Standards Act, termination of employment
- Ontario: Your guide to the Employment Standards Act, severance pay
- Ontario: Employment Standards self-service tool