What an Ontario termination letter is for
When an Ontario employer ends someone's employment without cause, the Employment Standards Act, 2000 (ESA) requires written notice, a minimum notice period or pay in lieu, continued benefits for that period, severance pay for some long-service employees, and final payment within a fixed time. A termination letter is where all of that is put in writing. A clear letter tells the employee exactly what they will receive and when, and gives the employer a record that each obligation was met.
This template is a complete without-cause termination package. The letter covers the notice itself with three options (working notice, pay in lieu or a combination), a table of ESA entitlements, final pay timing, benefits, the Record of Employment, return of property and support. An optional section offers an additional amount in exchange for a release, with a Full and Final Release that keeps ESA and workplace insurance rights intact. The employer's worksheet works through the checks to make before deciding, the section 57 notice table, the severance test and calculation, and the final deadlines.
When to use it
Use it when ending the employment of a provincially regulated Ontario employee for reasons other than misconduct: restructuring, a position eliminated, poor fit or performance that does not amount to cause. It works for full-time, part-time and long-service employees, and for employees with or without a written employment contract.
Do not use it for dismissal for wilful misconduct, for a temporary layoff, for a fixed-term contract that is simply expiring, or where 50 or more employees at one establishment are being terminated within four weeks, which requires longer notice and a filing with the Director. Federally regulated employers follow the Canada Labour Code. If the employee is on or returning from a protected leave, or has recently complained about their rights, get legal advice first.
What's inside
The full list of sections and fields in this template, in the order they appear.
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Notice of termination
- Termination date
- Without cause statement
- Working notice
- Pay in lieu of notice
- Combination
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ESA entitlements
- Length of employment
- Notice weeks
- Termination pay
- Severance pay
- Benefit continuation
- Wages and vacation pay
- Savings statement
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Final pay and benefits
- Payment date
- Calculation statement
- Severance instalments
- Benefit end dates
- Conversion rights
- Pension or RRSP
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ROE, property and support
- Record of Employment
- Employment Insurance
- Return of property
- System access
- Personal items
- Confidentiality
- Assistance program
- Contact person
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Optional additional offer
- Lump sum
- Extended benefits
- Outplacement or reference
- Deadline
- Legal advice
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Acknowledgment and Full and Final Release
- Receipt only acknowledgment
- Instalment agreement
- Release of claims
- ESA and WSIA exclusions
- Employee confirmations
-
Termination Entitlements Worksheet
- Pre-decision checks
- Section 57 notice table
- Severance eligibility and calculation
- Final steps and deadlines
Preview pages
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Page 1 -
Page 2 -
Page 3
How to complete the letter
- Complete the worksheet first. Answer the pre-decision checks, calculate the length of employment, the notice weeks and any severance pay.
- Check the employment contract. If there is a termination clause, confirm it is enforceable; if not, consider common law exposure before deciding what to offer.
- Choose the notice option. Working notice, pay in lieu or a combination, and enter the termination date.
- Fill in the entitlements table. Copy the figures from the worksheet, including vacation pay owed.
- Set the final pay date. It must be no later than the later of seven days after the termination date and the next pay day.
- Describe benefits. Enter when coverage ends, the conversion contact and any pension or RRSP details.
- Decide on Section 7. Keep it only if you are offering more than the ESA in exchange for a release, and give at least a week to decide.
- Deliver it in writing. Meet privately, hand over or send the letter, and record the date it was received.
- Finish the steps. Pay on time, continue benefits, issue the Record of Employment and recover property.
Example: a completed entitlements excerpt
A fictional Ottawa engineering firm, Rideau Valley Engineering Ltd., with a payroll of $3.1 million, eliminates the position of a drafting technician, Marc Lefebvre, who started on February 14, 2019:
Termination Date: November 20, 2026 (pay in lieu of notice, Option B). Length of employment: 7 years and 9 months. Notice of termination: 7 weeks, given as termination pay of $10,500, gross ($1,500 regular weekly wages). Severance pay: 7.75 weeks (7 years plus 9 months ÷ 12), $11,625, gross. Benefit continuation: contributions continue until January 8, 2027, the end of the 7-week ESA notice period. Final pay: by November 27, 2026, seven days after the termination date, because that is later than the firm's next pay day.
The firm also offers an additional $9,000 and three months of outplacement counselling under Section 7 if Marc signs the release within ten days, and confirms that the ESA amounts will be paid either way.
Ontario rules to know
These are the Ontario and federal rules this letter is built around.
- Written notice (ESA sections 54 and 57). One to eight weeks depending on length of employment, after the first three months.
- During notice (section 60). No reduction in wage rate or change to terms; at least regular wages each week; benefit contributions continue.
- Pay in lieu (section 61). A lump sum equal to the wages for the notice period, plus continued benefit contributions.
- Mass termination (section 58). 50 or more employees at an establishment within four weeks requires longer notice and information to the Director, posted and given to each employee.
- Severance pay (sections 64 to 66). Five years and a $2.5 million payroll or a qualifying closure; up to 26 weeks; instalments only by agreement or with approval, over no more than three years.
- Final pay (section 11(5)). By the later of seven days after employment ends and the next pay day.
- Reprisal (section 74). No dismissal for asking about or exercising ESA rights, including protected leaves.
- Record of Employment (Employment Insurance Regulations and Service Canada). Electronic ROEs within five calendar days after the end of the pay period in which earnings stopped.
Mistakes that cost Ontario employers
The common mistakes are paying only the ESA minimums when the employee has no enforceable termination clause, which leaves the employer open to a claim for common law reasonable notice; making ESA amounts conditional on signing a release; stopping benefits on the last day of work instead of at the end of the notice period; missing the final pay deadline; forgetting severance pay because the employer did not check its payroll; and terminating an employee during or right after a protected leave without a documented, unrelated reason. The worksheet's checks and the letter's entitlements table are designed to catch each of them.
Frequently asked questions
How much notice does an Ontario employer have to give when terminating without cause?
Under section 57 of the Employment Standards Act, 2000, none in the first three months, then one week for less than a year of employment, two weeks from one to three years, and one more week for each further year up to eight weeks for eight years or more. Notice must be in writing, and the employer can give working notice, pay in lieu, or a combination. These are minimums; without an enforceable termination clause, common law reasonable notice is usually longer.
Who gets severance pay in Ontario?
An employee with five or more years of employment whose employer has a payroll of $2.5 million or more, or who is one of 50 or more employees severed within six months because of a permanent closure of all or part of a business at an establishment. It is one week of regular wages per year of employment, prorated for partial years, up to 26 weeks, and is separate from notice or termination pay.
When must final pay be made after a termination in Ontario?
All wages owed, including termination pay and severance pay, must be paid by the later of seven days after employment ends and the employee's next regular pay day. Severance pay can be paid in instalments over up to three years only if the employee agrees or the Director of Employment Standards approves.
Can an employer require a release before paying termination pay?
No. ESA entitlements must be paid whether or not the employee signs anything. An employer can offer an additional amount above the ESA minimums in exchange for a release of other claims, such as common law reasonable notice, and should give the employee time to get legal advice.
Do benefits have to continue after termination in Ontario?
Yes, for the ESA notice period. Whether the employee works the notice period or receives pay in lieu, the employer must keep making the contributions needed to maintain the employee's benefits until the end of the ESA notice period.
