Firing Without Cause in Ontario: What Bookkeepers and Employers Need to Know

Let’s face it—terminating employment is never easy, whether you’re a solo bookkeeper, a growing firm, or supporting your clients through their own HR hurdles. In Ontario, “without cause” terminations are common, but the rules can be confusing and the risks are real. Here’s what you need to know to protect yourself, your team, and your business.

What Does “Without Cause” Really Mean?

In Ontario, employers can fire an employee at any time, even if the employee did nothing wrong. This is called “termination without cause.” It could be due to restructuring, cost-cutting, a lack of work, or simply a “bad fit.” Employers don’t have to share the reason, but they do have to provide advance notice and/or severance pay.

What Are Employees Entitled To?

If you’re let go without cause, you’re entitled to reasonable notice or pay in lieu of notice.

This could look like:

• Working notice (staying on until a set end date)

• Pay in lieu of notice (payment instead of working through the notice period)

• A mix of both

The Employment Standards Act (ESA) sets the minimum: one week per year of service (up to 8 weeks). Severance pay may also apply for long-term employees or bigger employers. If your employment contract doesn’t limit you to ESA minimums, you could be entitled to “common law” notice—often about one month per year of service, up to 24 months (sometimes more in special cases).

The Risks of Getting It Wrong

Terminating someone improperly can lead to big legal headaches. Employers must avoid:

• Discriminatory or retaliatory firings (e.g. after a health & safety complaint)

• Denying ESA minimums

• Acting disrespectfully or unprofessionally

• Falsely accusing employees of misconduct

These mistakes can mean extra damages or even years of lost wages awarded to the employee.

What Should Employers Consider?

Before making a termination decision, ask:

• What does the employment contract say?

• How long has the employee worked here?

• What’s their role and compensation?

• What’s the current job market like?

You must always provide ESA minimums—these can’t be waived. The way you handle the termination matters, too: honesty and professionalism go a long way in minimizing risk.

When to Call an Employment Lawyer

Every situation is unique. Employment lawyers can help employers minimize legal risk and employees understand their entitlements. They can negotiate, draft documents, and, if needed, help pursue or defend claims.

The Bottom Line

Terminating without cause is common, but it’s not simple. Employees may be owed up to 24 months’ severance, and the process must be handled carefully to avoid extra liability. Whether you’re an employer or employee, don’t guess—consult a professional!

Until next time,