Laid Off in Ontario? What to Do in the First 72 Hours

If you have just lost your job in Ontario, do not sign the severance package or the release yet. Secure your documents, request your Record of Employment, and get the offer reviewed first. Employers often attach a short deadline to sign, but that deadline is set by the employer, not by law.

Losing a job is disorienting. There is usually a severance package in your inbox and a message asking for your signature, and when you are worried about money, signing quickly can feel like the fastest way to move on. It is also the one decision that is difficult to undo, because the release you sign normally ends your right to ask for anything more.

One clarification before going further: a temporary layoff and a termination are different things in Ontario, and this article is about losing the job. If your hours were cut or you were sent home without pay, see the question on layoffs below.

What to do in the first 72 hours

These steps keep your options open and take very little time.

1. Get the termination in writing. Ask for a letter setting out your termination date and the reason given.
2. Do not sign anything yet. That includes verbally accepting the package. Saying you will think about it is a complete answer.
3. Write down what was said. Record the details of the meeting while they are fresh, including who was present.
4. Request your Record of Employment. Service Canada needs the Record of Employment, or ROE, to process an Employment Insurance claim.
5. Gather your documents. Your employment contract, offer letter, any amendments you signed later, recent pay stubs, bonus or commission plans, and performance reviews.
6. Apply for Employment Insurance now. Do not wait for the severance question to be settled.
7. Handle company property carefully. Keep it until your exit terms are sorted unless you are asked in writing, then return it in an orderly, documented way.
8. Keep a record of your job search. Save applications, responses and interview dates. This matters later: someone who does not look for comparable work may recover less, because earnings from a new job during the notice period can reduce what a former employer owes.

What your employer actually owes you

When employment ends without cause, an employer must generally provide notice or pay instead of notice. In Ontario that comes in two layers.

The first is the statutory minimum under the Employment Standards Act, 2000: termination pay based on length of service, plus statutory severance pay for employees who qualify based on years of service and the size of the employer’s payroll.

The second is common law notice, which developed through court decisions and is assessed on factors including your age, length of service, the position you held, and how difficult comparable work will be to find. It is frequently well above the statutory minimum. Our Ontario severance pay calculator gives an estimate of both.

Why the first offer is often low

Many first offers reflect only the minimums required by the Employment Standards Act, 2000. Employers frequently rely on a termination clause in the original employment contract to limit what they pay.

Whether that clause is enforceable is a separate question. Courts have found termination clauses unenforceable in a range of circumstances, and where that happens, common law notice applies instead of the amount in the offer. This is one of the main reasons a package can be worth considerably more than it first appears, and one of the main reasons to have the contract reviewed alongside the offer.

Our article on whether your termination clause is enforceable explains what that question turns on.

The deadline nobody mentions

Negotiating with a former employer does not pause the legal clock. A wrongful dismissal claim in Ontario generally must be started within two years of the termination date, and an application to the Human Rights Tribunal of Ontario generally must be filed within one year of the last incident. Missing a deadline can end a claim regardless of its merits. Our guide to limitation periods in Ontario explains how these periods work.

What if you were fired for cause

If your employer says you were terminated for just cause, it is alleging misconduct serious enough that nothing is owed. Just cause is a high standard in Ontario, the employer has to prove it, and it is asserted more often than it can be established. Being told you were fired for cause does not settle what you are entitled to.

Our article on being fired for cause in Ontario explains what the standard requires and what happens when an employer cannot meet it.

Talk to a lawyer before you sign

Powell Litigation represents employees and employers across Toronto and Ontario in employment disputes, including severance reviews and negotiations. Consultations are available in person, by phone and by Zoom. Contact us or call (437) 222-2234 before you sign anything.

Frequently Asked Questions

How long do I have to decide on a severance offer?

Employers often set a deadline of a week or two to sign the release. That deadline comes from the employer, not from Ontario law, and it is generally reasonable to take time to have the offer reviewed. If you are being pressured, say in writing that you are seeking legal advice.

Will accepting Employment Insurance affect my severance?

Receiving Employment Insurance does not prevent you from pursuing severance. Where a lump-sum severance payment is made, Service Canada may treat it as earnings allocated over a period of time, which can affect when benefits are paid. Report any severance payment to Service Canada.

Do I have to sign a release to get my severance?

Employers normally require a signed release, which gives up your right to sue, in exchange for a severance package. Your minimum entitlements under the Employment Standards Act, 2000 are a separate matter from the additional amounts a release is meant to buy. Have the release reviewed before signing.

What if I was laid off rather than fired?

A temporary layoff is a specific arrangement under Ontario employment standards law, and it is subject to limits. A layoff that goes beyond what is permitted can be treated as a termination, which means termination entitlements may apply. If your hours were cut substantially or you were sent home without pay, it is worth having the situation reviewed.

Can I be let go while on medical or parental leave?

Employees on statutory leaves such as pregnancy, parental or sick leave have protections under Ontario employment standards law and the Human Rights Code. An employer that ends employment because someone took or requested a protected leave may face an application to the Human Rights Tribunal of Ontario, which can order compensation for lost wages and for injury to dignity, feelings and self-respect.