4 Common Misconceptions About Employment Law in Ontario

Employment law in Ontario is sometimes misunderstood, leading to misconceptions that can impact employees’ rights and how they handle employment disputes. Many employees are unfamiliar with what they’re entitled to or assume that their employers are acting within legal limits. This blog will address four common misconceptions about employment law in Ontario, clarify the realities behind these issues, and provide practical advice for employees facing workplace disputes.

1. Misconception: Severance Pay is Only Owed for Wrongful Dismissal

Reality: In Ontario, severance pay can be owed even if you are dismissed without cause.

Many people think severance is only available in cases of wrongful dismissal or when an employer breaks the terms of the employment contract. However, under the Ontario Employment Standards Act (ESA), severance may be required for dismissals without cause, depending on the length of your employment and the size of the company. Employers must provide severance pay to eligible employees who have been with the company for five or more years, and the company’s payroll must exceed $2.5 million. Additionally, common law severance (beyond ESA minimums) may be owed based on factors such as age, position, and the time it may take to find similar employment.

If you are facing termination, consult an employment lawyer in Toronto to review your severance package. An employment lawyer can determine if your severance offer is fair and whether additional compensation may be due under common law.

2. Misconception: You Must Sign Termination Papers Immediately

Reality: You are not obligated to sign any termination papers on the spot.

When being let go, it’s common for employers to present termination documents, asking employees to sign immediately. These documents may include severance offers or waivers of legal claims. While the situation can feel pressured and stressful, you have the legal right to take time to review the documents before signing. Signing termination papers without proper review could mean giving up important legal rights or accepting a less-than-fair severance offer.

Never feel pressured to sign termination papers right away. Take time to read and understand what you’re agreeing to, and consider seeking a free consultation with an employment lawyer. This will help you make an informed decision about your severance package and any potential legal claims.

3. Misconception: Employers Cannot Terminate Employees Without Cause

Reality: Employers can terminate employees without cause, but they must provide proper notice or pay in lieu of notice.

In Ontario, employers have the right to terminate employees without cause as long as they follow the rules set out in the Employment Standards Act. The law requires that employees be given either notice of termination, pay in lieu of notice, or a combination of both. The length of the notice period is determined by the employee's years of service. However, if the termination is for cause (e.g. serious misconduct), the employer may not have to provide any notice.

If you are terminated without cause, ensure that your employer is complying with the legal notice requirements. In some cases, employees may be entitled to more notice or severance under common law than the minimum standards set by the ESA. Consulting an employment lawyer in Toronto can help you understand your full entitlements.

4. Misconception: Employment Contracts Are Always Enforceable as Written

Reality: Employment contracts must comply with Ontario law; unfair terms may be unenforceable.

Some employees believe that they have no choice but to accept the terms set out in their employment contracts. However, an employment contract that contains provisions contrary to the ESA, such as waiving certain entitlements, may be deemed unenforceable. Courts have struck down clauses in contracts that attempt to limit an employee's rights below what is provided under the ESA. If a contract is found to be unenforceable, employees may be entitled to more substantial compensation than what the contract specifies.

If you are presented with a new employment contract or are concerned about the terms in your current one, an employment lawyer in Toronto can review the contract and advise you on its enforceability. They can help you negotiate fairer terms or challenge clauses that may violate your legal rights.

How Can Aaron Waxman and Associates, P.C. Help?

Employment law can be complex and daunting, especially when dealing with terminations, severance pay, or contract disputes. Aaron Waxman and Associates, P.C. is well-versed in employment law matters in Ontario and offers personalized legal advice to help you navigate these challenges. We offer a free consultation to review your case and provide guidance on the best course of action.

Whether you need assistance negotiating a severance package, challenging unfair contract terms, or understanding your rights in a termination situation, our team can help you pursue a fair resolution. We are dedicated to protecting employee rights and ensuring that you receive the compensation and treatment you deserve.

Conclusion

Understanding your rights as an employee in Ontario is crucial, especially when it comes to severance, termination, and employment contracts. Misconceptions can lead to missed opportunities for fair compensation or overlooked legal rights. By knowing the realities behind these common misunderstandings and seeking advice when needed, you can better navigate employment disputes and protect your interests. If you're facing a workplace issue, taking the time to consult an experienced employment lawyer in Toronto can help you understand your options and secure the best possible outcome.Contact us at 416-661-4878 or awaxman@awaxmanlaw.ca for legal guidance.