What Is Wrongful Dismissal and What Can You Do About It?

Updated

Wrongful dismissal is when an employer ends your employment in a way that breaks the law or the terms of your employment contract — most often by firing you without just cause and without giving you the notice or severance you're owed. If this happens to you, your practical options are usually to negotiate a severance package or to get legal advice about your claim, and the specific rules and deadlines depend on where you work. Powell Barristers, an Ontario-based employment law firm, lists wrongful dismissal and severance among the areas it handles, which reflects how these two issues typically go together.

What makes a dismissal "wrongful"

A dismissal isn't automatically wrongful just because it feels unfair. It becomes wrongful when the employer fails to meet a legal or contractual obligation. The most common situations:

  • Dismissal without cause. The employer ends your employment but can't point to serious misconduct or a genuine failure to perform. In many jurisdictions, an employer can still dismiss without cause, but must provide notice or pay in lieu.
  • Dismissal without proper notice. Even a lawful "no cause" dismissal requires reasonable notice or compensation instead of notice. If the notice period is too short, the dismissal may be wrongful.
  • Dismissal without severance. Where severance is owed by statute or contract, failing to pay it can form part of a wrongful dismissal claim.
  • Dismissal that breaches the contract. Fixed-term contracts, termination clauses, or agreed procedures that the employer ignores can make a dismissal wrongful.
  • Constructive dismissal. Sometimes you aren't formally fired, but the employer makes a fundamental change — a major demotion, a drastic pay cut, a poisoned work environment — that forces you to resign. This can be treated like a dismissal.

The dividing line is usually cause and notice: did the employer have a valid reason, and did they give what the law or contract requires?

What you can do about it

The right path depends on your situation, but the general sequence looks like this:

  1. Get your documents together. Your employment contract, offer letter, termination letter, pay records, and any written warnings or performance reviews. These determine what notice or severance you were entitled to.
  2. Don't sign a release immediately. Severance offers often come with a deadline and a release of claims. Signing can end your ability to pursue more.
  3. Check the deadline. Wrongful dismissal claims are subject to limitation periods that vary by jurisdiction. Missing one can bar your claim entirely, so confirm the local rule early.
  4. Try to negotiate. Many wrongful dismissal disputes settle through negotiation over the notice period or severance amount, without going to a hearing.
  5. Get legal advice if negotiation stalls or the amount is significant. An employment lawyer can assess what you're actually owed and whether the offer is reasonable.

When to contact an employment lawyer

Consider legal help when:

  • You were dismissed without cause and the offered severance looks low relative to your years of service.
  • You were dismissed for alleged cause you dispute.
  • You're being asked to sign a release quickly.
  • You believe you were pushed out (constructive dismissal).
  • A limitation period is approaching.

Powell Barristers states that it assists both employees and employers with employment law matters, including wrongful dismissal, severance, and employment contracts, and invites people with questions about their situation to contact them. Whether you're an employee or an employer, the same facts — cause, notice, contract terms — drive the analysis.

Key things to keep in mind

  • Jurisdiction matters. Wrongful dismissal rules, notice periods, and limitation deadlines differ by province, state, and country. The Ontario context on this site won't map directly onto other places.
  • Statutory minimums vs. common law. Many jurisdictions set a legal minimum for notice or pay, but courts may award more based on factors like age, tenure, and position. The two aren't the same.
  • Severance and wrongful dismissal overlap. A severance dispute is often the practical form a wrongful dismissal claim takes.
  • Cause is hard to prove. Employers who allege cause usually carry the burden of showing it was justified.

If you're facing a dismissal or reviewing a severance offer, the most useful first step is to identify what notice or pay you were entitled to — then decide whether to negotiate or seek advice before any deadline runs out.