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Toronto employment lawyer — VC Lawyers

Employment Law

Toronto Employment Lawyerfor wrongful dismissal, severance, and workplace rights

Toronto Lawyers Association
Ontario Trial Lawyers Association (OTLA)
The Canadian Bar Association
Love Toronto
Consulate General of the Republic of Korea in Toronto
Korean Legal Clinic
Ontario Bar Association
Toronto Lawyers Association
Ontario Trial Lawyers Association (OTLA)
The Canadian Bar Association
Love Toronto
Consulate General of the Republic of Korea in Toronto
Korean Legal Clinic
Ontario Bar Association
Toronto Lawyers Association
Ontario Trial Lawyers Association (OTLA)
The Canadian Bar Association
Love Toronto
Consulate General of the Republic of Korea in Toronto
Korean Legal Clinic
Ontario Bar Association

Trusted by employees and employers across Ontario

Overview

Why employment law sits apart from every other legal practice

Most legal disputes happen between strangers. Employment disputes happen between people who used to share something — a workplace, a routine, sometimes years of weekly meetings, lunches, project deadlines, after-work drinks. When the relationship breaks down, the fallout is rarely just legal. It is financial. It is emotional. It affects mortgages, retirement plans, professional reputations, and family stability on both sides of the table.

That dual reality is exactly why VC Lawyers built our employment practice the way we did. We act for both employers and employees, but never in the same dispute, and we approach each side with full understanding of what the other is thinking. An employer who has just received a wrongful dismissal claim wants to know two things: how exposed are we, and how do we close this without reputational damage? An employee who has just been terminated wants to know two things: am I being treated fairly, and do I have to accept the package on the table? Both questions deserve serious answers grounded in current Ontario law, not boilerplate disclaimers.

This page is the central hub for everything we do in Toronto employment law. Below you will find an overview of the legal framework, the rights and obligations on both sides, the most common disputes we see in 2026, and links to our two specialized pages — one for employers, one for employees — where each side can find guidance specific to their position.

Choose your side

Employer-side or employee-side practice

We act for both, but never in the same dispute. Click into the page that matches your position to see specific guidance, fee structures, and procedural strategy.

Legal framework

The Ontario employment law landscape in 2026

Employment in Ontario is governed by a layered system of statutes, regulations, common law principles, and human rights protections. No single document tells the whole story. Understanding which layer applies to your situation is the first step in evaluating any claim or defence.

The Employment Standards Act (ESA) sets the statutory floor — minimum wage, hours of work, overtime, vacation, public holidays, leaves of absence, termination notice, and severance pay. As of 2026, Ontario's general minimum wage is $17.60 per hour. For terminations, the ESA provides termination pay (1 week per year, capped at 8 weeks) and severance pay (1 week per year of service, capped at 26 weeks, available where the employee has 5+ years of service AND the employer has either a $2.5M+ payroll or terminated 50+ employees within 6 months due to permanent closure). A long-tenured employee at a large employer can therefore receive up to 34 weeks of ESA-mandated payments. For most employees, however, the ESA is just the starting point.

Common law reasonable notice is where employment disputes are usually won or lost. Beyond the ESA floor, non-unionized employees in Ontario are entitled to court-developed reasonable notice — calculated using the Bardal factors (length of service, age, character of employment, availability of similar employment). There is no fixed formula. Ontario courts have developed a soft ceiling of approximately 24 months for the most senior, longest-serving employees. The general rule of thumb often cited is “approximately one month of notice per year of service,” but this is a starting point only.

Termination clauses are heavily litigated. Many employers attempt to limit common law notice through termination clauses in employment contracts. Whether such clauses are enforceable has become one of the most heavily litigated questions in Ontario employment law. In Waksdale v Swegon North America Inc. (2020 ONCA 391), the court ruled that if a “for cause” provision in the contract violates the ESA — even if the employee is being terminated without cause — the entire termination clause is unenforceable, and the employee falls back on full common law notice. This decision invalidated a huge number of contracts overnight. For employers, termination clauses must be reviewed by an employment lawyer at the time of hire, every time. For employees, a contract that appears to limit your entitlement may not actually do so — and a careful legal review can sometimes recover years of additional compensation.

The Ontario Human Rights Code prohibits discrimination in employment based on 17 protected grounds. Discrimination claims are heard by the Human Rights Tribunal of Ontario (HRTO) — no filing fees, no costs awarded against losing parties, streamlined process. Awards can include compensation for lost wages, compensation for injury to dignity, feelings, and self-respect (typically $10,000–$50,000+), and orders for reinstatement or policy changes.

17 Protected Grounds

Ontario Human Rights Code grounds protected in employment

Layered on top of the ESA and common law, the Ontario Human Rights Code prohibits discrimination based on these protected grounds in employment.

  1. 01

    Age (18 and over in employment)

  2. 02

    Ancestry, colour, race

  3. 03

    Citizenship

  4. 04

    Ethnic origin

  5. 05

    Place of origin

  6. 06

    Creed (religion)

  7. 07

    Disability (physical and mental)

  8. 08

    Family status

  9. 09

    Marital status (including same-sex partnerships)

  10. 10

    Gender identity, gender expression

  11. 11

    Receipt of public assistance (housing only — but referenced employment-side via association)

  12. 12

    Record of offences (employment only — provincial offences and pardoned criminal records)

  13. 13

    Sex (including pregnancy and breastfeeding)

  14. 14

    Sexual orientation

Other critical statutes

Beyond ESA and common law

A complete understanding of Ontario employment law also requires familiarity with the other statutes that govern workplaces — particularly OHSA, WSIA, and the Canada Labour Code for federally regulated industries.

  1. Occupational Health and Safety Act (OHSA)

    Workplace safety, the right to refuse unsafe work, and Bill 168 (workplace violence and harassment, mandatory since 2010).
  2. Workplace Safety and Insurance Act (WSIA)

    WSIB coverage for workplace injuries.
  3. Pay Equity Act

    Equal pay for work of equal value.
  4. Working for Workers Acts (2021–2024)

    A series of statutes introducing right-to-disconnect policies, electronic monitoring transparency, and other modern reforms — including the non-compete ban for non-executives.
  5. Canada Labour Code

    Applies to federally regulated employees (banks, airlines, telecoms, interprovincial trucking, federal Crown corporations) instead of the ESA.
Toronto severance negotiation — VC Lawyers represents employers and employees in employment disputes

Just received a severance offer?

Almost never sign on the deadline they gave you

Initial severance offers are almost always based on ESA minimums, which represent the legal floor — not your full entitlement. The deadline pressure is itself a tactic. Employers know that employees who feel rushed sign quickly.

Most severance offers can be reviewed and negotiated within 1–2 weeks. The first 30-minute consultation is free.

Book a Consultation

Common disputes

The most common employment disputes in 2026

Across our practice, the same patterns repeat. Below are the disputes we see most frequently. Detailed treatment of each is available on the Employer and Employee sub-pages.

  1. Wrongful Dismissal

    The most common employment claim. An employee terminated without cause (or terminated with cause where the employer cannot prove just cause) sues for damages equal to the common law reasonable notice period. The employer's defence usually rests on either (a) a valid termination clause limiting notice to ESA minimums, or (b) just cause for summary dismissal.

    The financial stakes are substantial. A 50-year-old marketing manager with 12 years of service earning $120,000 annually could be entitled to 14–18 months of notice — between $140,000 and $180,000, plus benefits continuation, plus prorated bonus.

  2. Constructive Dismissal

    A trickier claim. The employee was not formally terminated, but the employer made unilateral changes so significant that the employee was effectively forced to resign. Common triggers include: a unilateral reduction in pay or benefits; a demotion or significant reduction in responsibilities; a forced relocation to a distant office; a toxic workplace where the employer fails to address harassment; a fundamental change in reporting structure or job duties.

    The legal test, refined in Potter v New Brunswick Legal Aid Services Commission (2015 SCC 10), asks whether a reasonable person in the employee's position would conclude that the employer's conduct showed an intention to no longer be bound by the contract. If proven, the employee is treated as having been dismissed without cause — meaning they receive full common law notice damages.

  3. Severance Package Review and Negotiation

    When an employee receives a severance offer, they are usually asked to sign a release giving up all future legal claims. Once signed, the employee cannot come back later asking for more.

    Employers typically offer ESA minimums plus a small “goodwill” amount, hoping the employee will sign quickly. A careful legal review often reveals that the offer is 3-5 times below what the employee could reasonably claim under common law. Negotiation, conducted properly, frequently doubles or triples the original offer without ever needing to file a lawsuit.

  4. Workplace Harassment and Toxic Work Environments

    Bill 168 (now part of OHSA) requires every Ontario employer to have a workplace harassment policy, conduct investigations of complaints, and protect complainants from reprisal. Despite this, harassment cases continue to dominate our practice — particularly cases involving bullying by managers; sexual harassment (including post-#MeToo cases now coming forward years later); racial or religious discrimination, especially against employees with non-Western names or accents; disability-related mistreatment (including failure to accommodate).

    Employees can pursue harassment claims through HRTO, civil court, or both. Employers facing these claims must respond carefully — botched investigations create independent liability.

  5. Disability Accommodation and Long-Term Disability

    Employers have a duty to accommodate employees with disabilities to the point of “undue hardship” — a high legal threshold. This includes physical disabilities, mental health conditions (depression, anxiety, PTSD), addiction (substance use disorders are protected disabilities under Ontario human rights law), and chronic illnesses.

    A separate but related practice area involves long-term disability (LTD) claim denials by insurance companies. When an LTD insurer denies coverage, the employee is left without income, often unable to return to work, and facing complex insurance contract disputes. These claims involve different law than employment terminations but are frequently handled by the same legal teams.

  6. Workplace Investigations

    A growing practice area. When a complaint is made — about harassment, bullying, theft, fraud, or policy violations — the employer must investigate. A bad investigation can do enormous damage: for the complainant: re-traumatization, dismissal of valid complaints, retaliation; for the respondent: false findings that destroy careers; for the employer: civil liability, HRTO claims, and reputational damage.

    Investigations require neutrality, proper procedure, and legal training. Many employers retain external workplace investigators (often employment lawyers) for serious complaints.

  7. Employment Contracts, Independent Contractor Agreements, and Restrictive Covenants

    Before disputes arise, the contract sets the rules. We draft and review: employment agreements (ensuring termination clauses are enforceable post-Waksdale); independent contractor agreements (and the related question of whether someone is really an independent contractor — see the Wiebe Door test); non-competition clauses (now banned for most non-executives under the Working for Workers Act, 2021); non-solicitation clauses (still enforceable if narrowly drafted); confidentiality and non-disclosure agreements; bonus and commission plans (a frequent litigation flashpoint when employees are terminated mid-cycle).

  8. Unionized Workplaces, Federally Regulated Workers, and Specialized Sectors

    Unionized employees in Ontario are governed by the Labour Relations Act and resolve disputes through grievance procedures and labour arbitration — not civil court. Federally regulated employees follow the Canada Labour Code, which provides “unjust dismissal” protection unique to federal workers. We handle both.

  9. Mass Terminations and Restructuring

    When 50 or more employees are terminated within a four-week window at a single establishment (now including remote workers' homes, post-2023 amendments), the ESA imposes additional notice requirements: 8, 12, or 16 weeks depending on the size of the termination. Mass terminations also trigger heightened scrutiny under HRTO if any selection criteria correlate with protected grounds.

  10. Termination With Cause

    The rarest and most heavily litigated termination type. “Just cause” — also called “summary dismissal” — allows an employer to terminate without notice and without severance. The legal threshold is extremely high: courts describe just cause as the “capital punishment” of employment law.

    Conduct that has been found to support just cause includes serious theft, fraud, willful misconduct, sustained insubordination, and fundamental breach of trust. Conduct that has been found not to support just cause includes most performance issues, single instances of poor judgment, minor policy violations, and personality conflicts. For employers, attempting just cause termination without strong evidence is risky — courts often find the cause unjust and award aggravated or punitive damages on top of regular notice damages. For employees alleging wrongful termination “with cause,” recovery often includes not just lost wages but additional compensation for the manner of dismissal.

Why both sides need different counsel

Employer-side and employee-side under the same roof — but never in the same matter

The legal industry sometimes treats employment law as if there are two separate practices. The reality is more nuanced. Both sides of every dispute operate under the same legal framework. An employer who understands what an employee is entitled to under common law makes better termination decisions and avoids expensive surprises. An employee who understands what an employer can legitimately demand makes more realistic settlement decisions and avoids prolonged, fruitless litigation.

VC Lawyers acts for both, but never in the same matter. Our internal protocols ensure that an employer file does not share information with an employee file, and any conflict — actual or perceived — is screened at intake. Within a single firm, this dual-perspective approach has practical benefits: we know what employer counsel will argue because we are employer counsel in other files; we know what employee counsel will demand because we are employee counsel in other files; we negotiate from a position of realism rather than ideology; we resolve cases faster because both sides recognize our credibility on both sides of the table.

Our principles

How VC Lawyers approaches employment disputes

There is no single right way to handle an employment dispute. Different cases call for different strategies. That said, our practice is built around principles that apply across nearly every file.

  1. Early, Honest Assessment

    The first conversation is the most important. We tell clients — both employer and employee — what their case is actually worth, not what they want to hear. An employer who has clearly violated the ESA needs to know that, not be reassured. An employee who has been offered a fair package needs to know that, not encouraged to litigate. Honest assessments save time, money, and damaged relationships.
  2. Settlement First, Litigation If Necessary

    The vast majority of employment disputes settle. Industry-wide statistics suggest that fewer than 5% of filed claims actually go to trial. Most resolve through demand letters, negotiation, mediation, or pre-trial settlement. Our practice reflects this reality: we approach every matter as if it will settle, but prepare every matter as if it will go to trial. This dual track produces the best leverage in negotiations and the best results when trials become necessary.
  3. Cost-Conscious Strategy

    Employment litigation is expensive. A trial in Ontario Superior Court, properly conducted, regularly costs $50,000 to $200,000 per side. For most disputes, this cost-benefit analysis favours early resolution. We tell clients clearly when continued litigation makes economic sense and when it does not. Many of our employee-side files are taken on contingency (no fee unless we recover); many of our employer-side files are billed on fixed-fee packages for HR compliance and contract review work, eliminating budget surprises.
  4. Cultural and Linguistic Sensitivity

    Toronto is one of the most diverse cities in the world. Our practice reflects that. We have lawyers and staff who work in Korean, Mandarin, Cantonese, Hebrew, Hindi, Punjabi, Tagalog, Spanish, and Portuguese. For Korean-Canadian clients specifically — a community we serve heavily — we have lawyers who can handle every aspect of the file in Korean, including consultations, document review, and settlement negotiations.
  5. Industry Knowledge

    Employment law applies the same way to a tech startup as to a bank, but the contexts are different. We have particular experience in financial services (including federally regulated banks), technology and SaaS (especially commission and equity disputes), healthcare (regulated health professionals, hospital employees), hospitality and food service (including Korean-Canadian restaurant owners — a major part of our client base), retail, professional services (law firms, accounting firms, consulting firms), construction (with its specialized ESA exemptions), and education (private schools, post-secondary, ESL providers).

Key metrics

In the numbers

30-minute initial consultation
Free

30-minute initial consultation

Available for employee-side files
Contingency

Available for employee-side files

HR compliance for employers
Fixed-fee

HR compliance for employers

Languages spoken at the firm
8+

Languages spoken at the firm

The first consultation

What happens when you book the free 30-minute consultation

Whether you are an employer or an employee, the first consultation follows the same general structure. Consultations are confidential — solicitor-client privilege protects what you share from the moment the consultation begins, even if you do not retain us.

  1. You describe what happened

    Termination, complaint, contract dispute, investigation — whatever the issue is. We listen without interruption.
  2. We identify the legal issues

    Sometimes there are several layered issues, sometimes there is one clear claim, sometimes there is no claim at all. Honest assessment from minute one.
  3. We outline your options

    Settle, negotiate, file a claim, defend a claim, restructure documents, conduct an investigation. Each option comes with a rough estimate of timeline, cost, and likely outcome.
  4. We answer questions

    About process, about strategy, about cost, about what to do tomorrow morning, about what to say (or not say) to your employer or employee. This is the part most people remember.
  5. We document next steps

    Even if you decide not to retain us, you leave with a clear understanding of what to do next, when statutory deadlines are, and what records to preserve.

Fees

A note on free consultations and fee structures

Our employment practice offers a free 30-minute initial consultation to all prospective clients. This is not a sales call — it is a working session in which a licensed lawyer reviews your situation, identifies the legal issues, and provides a candid assessment of your options.

For employees, most files are handled on contingency — meaning no legal fee unless we recover compensation for you. The contingency percentage depends on the complexity of the file and the stage at which it resolves, but typical ranges are 25-33%. Disbursements (court fees, mediator fees, expert reports) are billed separately.

For employers, files are typically handled on hourly billing for litigation work, fixed fees for transactional work (contract drafting, policy review, compliance audits), and monthly retainers for ongoing HR advisory work. We provide written cost estimates before any work begins.

Our team

The lawyers who will handle your case

Employment law rewards strategic clarity, procedural depth, and the ability to negotiate from realism rather than ideology. Our team brings all three to every engagement — for employers and employees alike, in different files.

Kate Min Kwon — Immigration Consultant at VC Lawyers Toronto

Kate Min Kwon

Immigration Consultant

RCIC R529664 · RQIC 11726

Frequently Asked Questions

We answered all

  • Should I sign the severance package my employer offered?
    Almost never on the deadline they gave you. Initial severance offers are almost always based on Employment Standards Act minimums, which represent the legal floor — not your full entitlement. Employees are usually owed substantially more under common law reasonable notice, factoring in age, position, length of service, and the difficulty of finding comparable work. The deadline pressure is itself a tactic. Employers know that employees who feel rushed sign quickly. You are entitled to a “reasonable opportunity” to seek legal advice, and Ontario courts have repeatedly held that artificial deadlines are not enforceable. Most severance offers can be reviewed and negotiated within 1-2 weeks. Get the offer reviewed before signing the release.
  • How is wrongful dismissal different from being fired with cause?
    Most terminations in Ontario are “without cause” — the employer has no specific allegation against the employee but is ending the relationship for business reasons. Without cause termination requires the employer to provide either working notice, pay in lieu of notice, or a combination, calculated under the ESA and (for non-unionized employees) common law. “With cause” termination — also called “summary dismissal” or “just cause” termination — means the employer alleges the employee committed misconduct so serious it justifies immediate termination without any notice or severance. The legal threshold is very high. Performance issues, personality conflicts, and minor policy violations almost never meet the test. Theft, fraud, sustained insubordination, and serious safety violations sometimes do. If you believe your employer has wrongfully alleged just cause to avoid paying severance, you have a strong wrongful dismissal claim. Courts that find against an employer on just cause often award additional damages for the manner of dismissal.
  • What is constructive dismissal and how do I prove it?
    Constructive dismissal occurs when an employer makes a unilateral change to the employment relationship so significant that it amounts to ending the original contract. The employee has not been formally fired, but is being squeezed out. Common examples: pay reduction without consent, significant demotion or removal of responsibilities, forced relocation to a distant office, toxic workplace that the employer fails to address, fundamental changes to job duties. The Supreme Court of Canada in Potter v New Brunswick Legal Aid Services Commission (2015 SCC 10) set out the modern test: would a reasonable person in the employee's position conclude that the employer's conduct showed an intention to no longer be bound by the contract? If you believe you are being constructively dismissed, the timing of your response matters enormously. Wait too long and you may be deemed to have accepted the new terms. Resign too quickly without proper documentation and you may lose the claim. Talk to a lawyer first.
  • Can I sue my employer for workplace harassment?
    Yes, through several different avenues: HRTO (Human Rights Tribunal of Ontario) — if the harassment is based on a protected ground (race, sex, religion, disability, etc.); Civil court — for harassment that constitutes the tort of harassment (a relatively new but increasingly recognized claim in Ontario); Through OHSA (Occupational Health and Safety Act) — your employer has a duty to investigate and protect you from harassment; failure to do so creates liability; Constructive dismissal claim — if the harassment forced you to resign. Each path has different procedures, timelines, and remedies. HRTO is generally faster and less expensive but caps damages for “injury to dignity, feelings, and self-respect” at typical ranges of $10,000–$50,000 (with outliers higher). Civil court is more expensive but allows for broader damages. Workplace harassment claims also intersect with employment standards: if you were terminated for reporting harassment, that is a “reprisal” — independently illegal and grounds for a separate claim.
  • My employer is asking me to sign a non-compete. Can they enforce it?
    In Ontario, non-compete clauses are largely unenforceable for non-executives as of October 2021, when the Working for Workers Act took effect. The Act prohibits non-compete agreements except in two narrow circumstances: the employee is an “executive” (CEO, COO, CFO, CIO, CTO, etc.); or the clause is part of the sale of a business. Non-compete clauses signed before October 2021 may still be enforceable, but face heavy scrutiny from Ontario courts under traditional restraint of trade analysis (geographic scope, time period, scope of restricted activity). Non-solicitation clauses — separate from non-competes — are still enforceable if narrowly drafted. A non-solicit can prevent you from contacting your former employer's clients or recruiting their employees, but cannot prevent you from working for a competitor generally. If your current or former employer is threatening enforcement of restrictive covenants, get legal advice before assuming you must comply. Many of these clauses are drafted overly broadly and would not survive a court challenge.
  • How long do I have to file a wrongful dismissal claim?
    The general limitation period for wrongful dismissal in Ontario is two years from the date of termination under the Limitations Act, 2002. This is a hard deadline — claims filed even one day late are barred regardless of merit. Some related claims have shorter or different limitation periods: HRTO discrimination claims — 1 year from the last incident (extendable in limited circumstances); ESA complaints — 2 years from when wages became due (with a $10,000 maximum for unpaid wages claims through the Ministry of Labour); WSIB claims — 6 months from the workplace injury. Do not assume you have time. The earlier you consult a lawyer, the more options you have — including pre-litigation negotiation, evidence preservation, and (importantly) settlement before legal costs accumulate.
  • Can I be fired for refusing to return to the office?
    Probably not, but it depends. If your contract permits remote work and your employer is unilaterally changing that, the change may amount to constructive dismissal. If your contract requires in-office work and you are refusing, you may be at risk of insubordination — although personal circumstances (childcare, caregiving, disability accommodation, religious practice) may provide protection through human rights law. Post-pandemic return-to-office cases are still working through Ontario courts, and the legal landscape is evolving. The key questions are usually: What does your contract say about location of work? Was remote work formalized through any written agreement during the pandemic? Are you raising a protected ground (disability, family status) for the refusal? How much notice did the employer give of the change? These cases are highly fact-specific. Before refusing or being fired, get legal advice.
  • What are the costs and how do contingency fees work?
    Costs depend on the type of file: Free 30-minute initial consultation — no charge, no obligation; Severance package review only — flat fee, typically $500–$1,500; Negotiation through demand letter — often handled on contingency (no fee unless we recover) or hourly; Litigation through to trial — typically contingency for employee-side cases (25-33% of recovery), hourly billing for employer-side cases ($350–$650/hour depending on lawyer seniority); Employer HR compliance audit — fixed fee, typically $3,000–$10,000; Drafting a full set of employment contracts and HR policies — fixed fee, typically $5,000–$15,000; Workplace investigation conducted by our firm as external investigator — hourly, typically $5,000–$25,000+ depending on complexity. Most employees are pleasantly surprised to learn that wrongful dismissal cases can be pursued without paying any legal fees upfront — only if and when we recover compensation. Disbursements (court fees, mediator fees, expert reports) are usually advanced by the firm and recovered from the settlement.

Take the next step

Employment disputes consume everything around them. Don't navigate them alone.

Sleep, focus, relationships, work performance — employment disputes affect all of it. Getting clear, professional legal advice early is the single most effective way to take control. You do not have to know what your rights are before you call. That is what the first consultation is for. The first 30-minute consultation is free, the relationship is contingent for employees (no fee unless we recover), and we work in English, Korean, and several other languages.

Toronto Office

Vaturi & Cho LLP

1110 Finch Ave W #310
North York, ON M3J 2T2
info@vclawyers.ca

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