Wrongful dismissal refers to the unfair, and unreasonable termination of an employee. In determining whether one is entitled to damages for wrongful dismissal, one must first be found to be an employee. Generally, to be an employee one must be under the control and direction of an employer. Therefore where one's payment is determined solely by commission, rather than a wage, without direct control or supervision, he or she may be precluded from seeking damages for lack of notice for wrongful dismissal.
If an employee has been justifiably terminated, or in other words "with just cause" he or she will not be entitled to damages for wrongful dismissal and will not be entitled to damages for lack of notice for the dismissal. Some examples of "just cause" terminations are where an employee has:
Contrary to popular belief, employers have the option of either providing an employee with proper notice, or severance pay in lieu of notice. Ontario's Employment Standards Act , for example, requires written notice of one week for employees employed for more than three months but less than one year, two weeks written notice for employees employed for more than one year but less than three years, three weeks written notice for employees more than three years but less than four years, to a maximum of eight weeks written notice if the employee has been employed for more eight years or more. Federal government employees may be entitled to additional benefits under the Canada Labour Code. Since the Employment Standards Act sets out minimal notice requirements, employees are often entitled to more substantial severance pay.
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