Can You Be “Un‑Fired” in Ontario? What Happens When an Employer Tries to Take Back a Termination

Termination is stressful from every angle. Employees are suddenly thinking about income, references, updating a resume, and how quickly they can land something new. Employers, meanwhile, are staring down the cost of recruiting, onboarding, and training—made even harder by Canada’s ongoing labour shortage. That pressure can lead to an awkward (and surprisingly common) situation: an employer terminates someone, then tries to reverse course.

So what happens if your employer says, “Actually… come back”? Does the employment relationship automatically restart? Can an employer simply revoke a dismissal? And what should you watch for before you agree?

Does the employment relationship end when you’re dismissed?

In Ontario, terminations generally fall into two categories:

• Termination with cause: The employer alleges serious wrongdoing that justifies ending employment without notice or severance. “Cause” is a high bar and may involve repeated misconduct or a single incident so severe that continued employment isn’t workable.

• Termination without cause: The employer ends the relationship for almost any reason, as long as they provide reasonable notice or pay in lieu of notice (and potentially other entitlements).

In most cases, once termination takes effect, the employment relationship is considered ended.

When does a termination “take effect”?

A termination typically takes effect when:

• the employee stops working, or

• the termination date in the letter arrives (if the employee continues working to that date).

Once the termination has taken effect, an employer can’t simply undo it unilaterally. They can offer to rehire you—but they generally can’t force you back by declaring the dismissal “revoked.”

Can an employer revoke a dismissal?

An employer may change their mind, but the key point is this: a return to work usually requires the employee’s consent.

If you’ve been terminated and the employer asks you to come back, you generally have two options:

1. Decline the offer and treat yourself as terminated

   • You can refuse to return and pursue your termination entitlements.

   • Depending on the facts, those entitlements can be significant. A common rule of thumb people hear is roughly one month of notice (or pay) per year of service, though every case is different.

2. Accept the “un‑firing” and continue employment

   • If you agree to return, the law may treat your employment as continuing—essentially putting you back where you would have been if the termination never happened.

If you accept, what should stay the same?

When an employee accepts a cancellation of termination, they may be entitled to continue on the same terms as before, including:

• salary/wages

• benefits

• seniority and length of service

That last point—continuity of service—is where things can get complicated.

The tricky part: gaps in service and “new employment” offers

If there’s a meaningful gap between the termination date and the date the employer tries to bring you back, you’ll want to slow down and get clarity.

Some employers may attempt to frame the return as a brand-new employment relationship. Why does that matter? Because it can reduce your recognized length of service, which can impact:

• seniority-based perks

• benefit eligibility

• and—most importantly—future termination entitlements (longer service often means longer notice)

What to ask for before you agree

If you’re considering going back, ask for written confirmation on:

• whether your employment is being treated as continuous

• whether your seniority and service date remain unchanged

• how any gap will be handled (credited or not)

Getting this in writing can prevent you from accidentally giving up years of service.

How an employment lawyer can help (for both sides)

Because the details matter, legal advice can be valuable whether you’re the employer or the employee.

For employers

An employment lawyer can help you:

• understand obligations when attempting to rehire

• avoid unintentionally taking on liabilities

• draft or review documents that clearly state whether this is continuing employment or a new offer

For employees

If you’ve been terminated, a lawyer can:

• review whether your severance/termination package is fair

• negotiate for improved terms

• advise you on whether returning to work could reduce your rights (especially if the employer is trying to reset your service)

Employees often sign quickly because they want the stress to end—only to learn later they accepted less than they were entitled to.

Bottom line

In Ontario, employers can terminate employment without cause as long as they provide reasonable notice or pay in lieu. Once termination takes effect, the relationship is typically over—meaning an employer can’t simply “undo” it without the employee agreeing.

If an employer asks you to come back, you can choose to decline and pursue termination entitlements, or you can accept and treat employment as continuing. If there has been any gap in time, be cautious: make sure you understand whether your service is continuous or being treated as new employment.

Every situation is fact-specific. If you’re dealing with a termination reversal, getting advice tailored to your circumstances can protect your rights and reduce risk.

Until next time,