Any employee can be dismissed from their job at any time as long as their employer continues to pay salary during a period of reasonable notice. The purpose of this notice period is to compensate the employee while they look for comparable employment.
How to Determine Reasonable Notice?
Reasonable notice is determined by statute, by agreement between the employer and employee and by the common law.
- Statutory Notice Period – In Ontario, s. 57 of the Employment Standards Act provides for the minimum amount due to an employee upon termination. For example, a two year employee is entitled to two weeks of notice or pay in lieu of notice upon termination.
- Notice Period by Agreement – Employment contracts are agreements between employers and employees that usually specify what the notice period will be in the event of termination. An employment agreement cannot provide for less than the Employment Standards Act minimum notice.
- Common Law Notice Period- Courts have taken the following factors into account in determining what constitutes a reasonable notice period:
- length of employment
- age of employee
- health (will it interfere with ability to conduct job search?)
- level of education
- degree of specialty
- level of responsibility (supervision of other employees?)
- availability of suitable jobs, including size of city/town
Employers usually offer a package that provides for payment if the terminated employee agrees to the terms of the package and signs a release. Prior to signing, you should have the offer and release reviewed by a lawyer to ensure that you are receiving what you are entitled to.