Employers’ Guide to Termination

Employment Termination
If you are going to terminate an employee, there are important steps to complete. Some are tasks to meet your legal obligations as an employer. Others will help protect your business from financial implications that might arise from the termination.

The Employers’ Guide To Termination
Two important laws that apply to terminations when the employer is governed under Ontario law: the Employment Standards Act (“ESA”) and the common law.

The ESA sets out the minimum standards to which employees are entitled. These are minimums only and if you offer a greater benefit than what is in the ESA, that greater benefit will apply.

The ESA outlines the minimum amount of notice you must give to an employee on termination. The length of notice is tied to how long the employee worked for you.

This period of notice can be given as advance notice of termination, during which time the employee must continue to report to work. Alternatively, you may simply provide the employee with pay in lieu of notice, which must be paid within the later of seven days after termination or on the next pay period.

Termination Lay off or Dismissal Record of Employment
The responsibility of issuing a Record of Employment (ROE) falls to you, the employer, as it is used to determine:

  • The individual’s eligibility for Employment Insurance benefits
  • The amount of the benefits
  • How long the individual can receive the benefits


Ministry of Labour Severance Tool Calculator
Employers trying to determine whether an employee is entitled to severance pay will find this tool useful.

The Chatham-Kent Workforce Planning Board assumes no responsibility for any errors or omissions within the toolkit. Under no circumstances shall the CKWPB be held liable for any loss or damage, which may be attributable to the reliance on and use of the toolkit.

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