Employment Law in Ontario: Answers to the Top Termination, Disability, WSIB, and Reprisal Questions
- Pervez & Pervez Law
- Aug 10, 2025
- 4 min read
Introduction
Employment termination can be stressful especially if health issues or workplace injuries are involved. Ontario law provides specific protections around termination pay, severance pay, wrongful dismissal, disability leave, WSIB claims, and reprisal under Section 50 of the Workplace Safety and Insurance Act (WSIA).
In this FAQ, we answer the most common questions our clients ask about employment termination and related workplace rights in Ontario.
1. What is the difference between termination with cause and without cause in Ontario?
Termination without cause is the most common and requires proper notice or pay in lieu. Termination with cause applies only to serious misconduct and provides no notice or pay, but the legal standard is very high.
Without cause means the employer does not need a specific reason, but must meet ESA or common law notice requirements. With cause is reserved for cases like theft, fraud, or gross insubordination and is difficult to prove in court.
2. How much notice or termination pay am I entitled to?
Under Ontario’s ESA, employees are entitled to 1 week of notice per completed year of service, up to 8 weeks. At common law, notice can be much longer based on age, role, and length of service. Many employees receive months of common law notice, which is often far greater than the ESA minimum. This is why legal advice before accepting a package is crucial.
3. What is severance pay and when is it required?
Severance pay is extra compensation owed under specific circumstances, consult with a lawyer to see if its applicable to your situation. If applicable, severance is calculated at 1 week per year of service, up to 26 weeks, and is in addition to notice or termination pay.
4. What counts as wrongful dismissal?
Wrongful dismissal occurs when you are terminated without being given the full legal notice or pay in lieu that you’re entitled to.
It’s about inadequate notice or compensation, not whether the firing was “unfair.” Both ESA and common law standards apply.
5. What is constructive dismissal?
Constructive dismissal happens when your employer makes major changes to your job without your consent, such as a significant pay cut, demotion, or relocation. You may be entitled to treat the change as a termination and claim notice or severance.
6. How do I calculate my termination pay?
ESA minimum = 1 week per year of service (max 8). Common law notice may be months longer based on age, role, and job market. The difference between ESA and common law can be substantial. A lawyer can calculate both to ensure you receive the highest entitlement.
7. Can my employer fire me while I’m on disability in Ontario?
An employer generally cannot fire you just because you’re on disability leave. Termination must be unrelated to your medical condition, and employers have a duty to accommodate. If you’re on STD, LTD, or recovering from injury, you’re protected under the ESA, the Ontario Human Rights Code, and, for work injuries, WSIB rules. Any termination during leave must be for legitimate, unrelated reasons and employers must prove it.
8. Do I have to accept modified duties from my employer while on WSIB?
Yes, if the modified duties are medically suitable and safe, you must accept them. Refusing can affect WSIB benefits. Employers must offer duties that match your medical restrictions. If the duties are appropriate, you’re expected to accept. You can dispute unsuitable work through WSIB and your healthcare provider.
9. Can I be terminated if I can’t return to work after a workplace injury?
Yes, if you can’t perform the essential duties of any suitable role after all reasonable accommodations, your employer may terminate. Employers must accommodate to the point of undue hardship. If you still cannot work in any capacity after accommodation efforts, termination may occur but notice, severance, and other rights may still apply.
10. If I’m fired while on disability, do I still get termination pay?
Yes, you may still get termination pay and severance pay even if you’re on disability benefits. You may be entitled to ESA and common law notice, but the interaction with disability benefits can be complex. Legal advice ensures you receive the maximum amount without unnecessary deductions.
11. What is a Section 50 WSIB reprisal?
A Section 50 reprisal happens when an employer penalizes, threatens, or fires you for filing a WSIB claim, reporting a workplace injury, or exercising your WSIB rights. Under Section 50 of the Workplace Safety and Insurance Act, it is illegal for employers to retaliate against workers for claiming benefits, reporting unsafe work, or participating in WSIB processes. Remedies can include reinstatement, back pay, and damages. These cases are usually filed with the Ontario Labour Relations Board (OLRB).
12. Do I need to sign a termination package right away?
No, you should review it with an employment lawyer before signing. Many packages can be improved through negotiation. Employers often set short deadlines, but those can be extended in practice.
13. How long do I have to make a wrongful dismissal claim?
Generally, 2 years from the termination date. Some Ministry of Labour claims have much shorter deadlines, so it’s best to act quickly.
14. Should I hire an employment lawyer before signing anything?
Yes, a lawyer can review, calculate, and negotiate your entitlements. The gap between an employer’s offer and your full entitlement is often significant, especially when factoring in common law notice.
Conclusion
Whether you’re facing termination while actively working, on disability leave, after a WSIB claim, or believe you’ve experienced a Section 50 reprisal, Ontario law provides important protections but also complex rules. Getting legal advice before signing anything can protect your income, benefits, and future job prospects.