Dismissal of Employees

A key difference between "labour law" (law covering unionized employees) and "Employment law" (law covering non-unionized employees) is that non-unionized employees may be dismissed by their employers either "for cause" or "without cause" (as opposed to unionized employees who may only be dismissed for just and reasonable cause).

If an employee is dismissed for cause, then the employer does not owe the employee any severance pay or any period of notice. If, however, an employee is dismissed without cause, then the employee is entitled to a reasonable period of notice, or pay in lieu of the reasonable notice period.

One of the key statutes regulating Employment law is the Employment Standards Act. . It establishes minimums that must be met (of course employees and employers are generally free to bargain terms above the minimums set out in the Act). The Employment Standards Act sets out the minimum entitlement of employees who are dismissed without cause. The minimums are as follows:

  -   After 12 months of employment, an amount equal to 2 weeks' wages;
  -   After 3 consecutive years of employment, an amount equal to 3 weeks' wages;
  -   Plus an amount equal to one weeks' wages for each additional year of employment to a
      maximum of 8 weeks' wages.

The above amounts do not apply if the employee was provided with written notice of termination and then was allowed to work through the relevant notice period.