In Ontario, an employer is legally entitled to terminate the employment of its employee for ‘just cause’. If an employee is terminated for cause, the employer is not obligated to pay the employee statutory termination or severance pay under the Employment Standards Act or any pay in lieu of notice under the common law. Essentially, an employee who is terminated for just cause is not entitled to any notice.
On March 21, 2017, the Court of Appeal for Ontario released its decision in Chapman v. GPM Investment Management, 2017 ONCA 227. The decision includes an interesting statement on the law of constructive dismissal. In a nutshell, the court stated that a "disagreement regarding the calculation of a bonus is not necessarily constructive dismissal”.
In Ontario, when an employer is terminating an employee, it must provide reasonable notice of termination or pay in lieu of notice. The central question for an employer and an employee is, what is the reasonable notice period?