Notice of Termination
The first 3 months of employment are considered a probationary period. During this period, the employer may terminate an employee without any requirement for notice or compensation. The employee, likewise, can terminate their employment without any requirement for notice or penalty.
An employer cannot reduce the hours of work, rate of pay, or benefits of the employee during the notice period. The employer cannot consider vacation time as part of the notice period.
When an employer terminates an employee without a valid reason, they must provide the employee with the following notice:
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less than 90 days continuous employment
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no notice required
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90 days to 1-year continuous employment
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1 week notice or pay in lieu of notice
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1 year to 5 years continuous employment
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2 weeks’ notice or pay in lieu of notice
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5 years to 10 years continuous employment
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4 weeks’ notice or pay in lieu of notice
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10 to 15 years continuous employment
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6 weeks’ notice or pay in lieu of notice
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more than 15 years continuous employment
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8 weeks’ notice or pay in lieu of notice
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When an employee leaves a job they must provide the following notice to their employer:
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Less than six months of continuous employment |
No notice |
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6 months to 5 years of continuous employment |
1 weeks’ notice |
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Five years or longer continuous employment |
2 weeks’ notice |
The Act requires that both parties provide written notice, but situations can arise where this does not happen. If the inspector can confirm verbal notice was provided by the employer or employee, they may accept it to help resolve the situation fairly.
An employee who receives a written notice of termination but continues to work for a month of more can only be terminated if the employer provides a new written notice.
To end an employee’s job without notice or pay in lieu of notice, the employer must show that they have a valid reason. This is often referred to as “with cause”.
Example: The employer has made their expectations clear to the employee and has warned them that not improving their behavior could lead to them being fired.
There are situations, such as theft, where the above criteria would not apply. The employer, however, must be able to prove their allegation of theft or must have started legal action. In that case, the inspector will pause the process until the court or police finish their investigation.
Employers should consider using a discipline policy that progresses with each step. It could involve a verbal warning, a written warning, a suspension, and then finally, termination of the employee. The discipline should depend on the severity of the situation.
Problems can arise when an employer does not correct past behaviour, ignores an employee’s poor performance at work, and then later fires the employee for the same poor behaviour. An employee has to be told that poor performance will not be allowed, so they can understand what will happen if their performance does not improve.
If an employment agreement provides more notice of termination than the Act requires, the agreement applies.
An employer does not have to give notice before ending a job if:
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the employee is terminated for a valid reason or “with cause”
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the employee was hired for a specific job that lasts12 months or less;
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the employee is laid off because there is no work for 6 days in a row or less.
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the employer offers the employee a reasonable different job;
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the job ends or the employee is laid off because of labour disputes, weather conditions, or government actions that affect the business;
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the employee is terminated or laid off to due any unforeseeable reason that is outside the control of the employer; or
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Before terminating employment of long-term employees, employers should consider getting legal advice on what fair compensation may be.
A shortage of work does not allow an employer to terminate without notice, unless it meets the criteria in Section 59.
Group Termination/Layoffs
If 10 or more employees representing at least 25% of the workplace are laid off or let go within a two-month period, the employer must give at least 6 weeks’ notice to the affected employees, any union, and the Minister of Workforce and Advanced Learning.
This information is meant to serve as a guide only. The reader is strongly advised to consult the Employment Standards Act to view the legislation. Where any difference exists between this information and the Act, the Act will be considered correct.