I was let go one month into a three-month probation period. Does this mean I’m not entitled to any severance or compensation?
This blog was originally published in the Globe and Mail on May 16, 2023
I was recruited into a new role and quit my previous job to take the new one. Unfortunately, I was let go one month into a three-month probation period. Does this mean I’m not entitled to any severance or compensation? What are my options?
In Ontario, employees terminated less than three months into their employment are not entitled to any notice or compensation under Ontario’s Employment Standards Act (ESA). However, probationary periods do not arise from legislation; they are established by the employment contract. Probationary periods longer than three months attract ESA protections. And in some circumstances, even shorter-term probationary employees may receive compensation under the common law or the Ontario Human Rights Code.
Some employment contracts provide for set compensation upon termination. Most contain termination clauses that purport to restrict compensation to minimum ESA entitlements. Fortunately for employees, not all termination clauses are valid and enforceable. Termination clauses are void if they try to limit entitlements or rights under the ESA or if their meaning is ambiguous.
A void termination clause entitles employees to common law reasonable notice (or pay in lieu thereof) upon termination. Such compensation is usually minimal for short-term employment. However, it can be more significant for employees in senior or highly specialized positions, or where employees have few other opportunities in the job market. Greater notice may also be provided where an employer used undue pressure tactics to induce an employee to quit a secure job to take up a new position.
Finally, regardless of the employment contract and ESA, an employee may be entitled to compensation if a ground protected by the Human Rights Code, such as race, gender or disability, was a factor in the termination.
The interpretation of termination clauses can be a highly technical exercise and most employees can benefit from some legal advice on their options following termination.
The above is provided as general information only. Questions related to resigning your job or being terminated may involve complex legal issues. Contact us today if you would like to consult with our lawyers.
