The Employment Standards Act, 2000 of Ontario details entitlements to notice pay, severance pay, and benefits on termination of employment. While employers can minimize their financial responsibility to a dismissed employee through a well-drafted employment contract it is important that the agreement comply with the minimum requirements.
The Employment Standards Act sets out an employees’ minimum entitlement to notice and severance pay on termination of employment. Courts have long held that the Employment Standards Act, 2000 are minimum entitlements only. According to the Courts, an employer is obliged to pay damages to the dismissed employee during the time it will take to replace the lost employment.