What Are the Things I Should Consider Before Firing?: The 2025 Guide to Avoiding Legal Pitfalls for Terminations in Canada

By Cheryl Petruk

Firing an employee is never an easy task. It can be difficult on many levels. But the key to terminating an employee is doing it the right way, ensuring there are no potential issues after the fact.

There are employee termination rules in Canada that employers have to follow. These rules may vary depending on your province, industry, and other factors.

We’ll provide a terminating employee checklist and answer common questions employers have about the process of firing an employee in Canada.

In this blog:

What is the common law for termination in Canada?
What are the things I should consider before firing an employee? A terminating employee checklist
What to say to terminate an employee
What is the notice period for termination?
Is it mandatory to give 2 weeks' notice in Canada?
Does an employer have to tell you why you were fired in Canada?
Can you be fired without warning in Canada?

What is the common law for termination in Canada?

There are laws in place in Canada for how to properly terminate an employee. According to the Canada Labour Code, all employers must abide by these rules for individual termination:

“If you are an employer and choose to terminate the employment of an employee, you must:

Provide the employee with a minimum of 2 weeks’ written notice. For an employee who has completed at least 3 years of service, the minimum notice requirement is equivalent to 1 week per completed year of employment, up to a maximum of 8 weeks of notice, or
Pay the employee their regular wages in lieu of notice

A combination of notice and wages in lieu of notice is permitted.”

What are the things I should consider before firing an employee? A terminating employee checklist

There is a long list of things to consider before you fire an employee. Making a rash or emotional decision could have legal repercussions. Here is what you should consider before deciding to terminate an employee:

Is firing the employee the best/only course of action considering the situation?
Have a list of reasons prepared for your decision to terminate
Have documented justification if you are firing for cause.
Review the employment contract, termination clause, and company policies to ensure you are within your rights to terminate the individual's employment.
Confirm you are in compliance with provincial employment standards (notice, severance, vacation pay, etc.).
Have a termination letter, final pay details, and benefits information ready before you give the employee the news
Ensure you have a witness present when you communicate termination. This is usually another HR representative or manager
Schedule the meeting in a private setting.
Have a plan to cover the outgoing employee's responsibilities until you can fill the position.
Have the initiation recruiting steps in place to start the hiring process.

What to say to terminate an employee

What you say to an employee during the termination process is important. Choose your words carefully, keep the conversation on point, and clearly communicate your decision and next steps. Here is what to say and how to say it:

Opening the conversation: Get to the point of the meeting right away. Make it clear that the meeting is about the employee's status with the organization.

Clearly state the decision to terminate employment: Tell the employee you’ve decision to terminate their employment. Don’t use vague or misleading language.

Keep your explanation factual and to the point: Explain your reasons for your decision (performance, personal conduct, downsizing, company restructuring, etc.)

Explain next steps, logistics and entitlements: Explain final payments, benefit cut-off date, and other information as required by the employment standards in your provide. Explain how they will receive their Record of Employment (ROE).

Discuss practical details: Explain how they can get their personal belonging, the return of company devices, access cards and when they will receive a computer of the termination package.

What is the notice period for termination?

Employers must provide the employee with at least two weeks’ written notice of termination. For employees who have worked three or more years, the minimum notice increases to one week of notice for each completed year of service, up to a maximum of eight weeks. Alternatively, employers may provide pay in lieu of notice, equal to the employee’s regular wages for the applicable notice period.

Is it mandatory to give 2 weeks' notice in Canada?

“Two weeks’ notice” is a rule of thumb, not a law. It is a professional courtesy that employees extend to employers when they choose to exit an organization. In general, the greater the number of years of service, the longer the notice period you should provide. Giving proper notice is recommended so it doesn't affect employment references. It is also important in case you may want to work for the company again in the future. Giving proper notice and leaving the right way could leave the door open for an employer to get rehired.

Does an employer have to tell you why you were fired in Canada?

No, an employer does not have to tell you why you were fired from your job in Canada if you are fired without cause. This means you were let go because of a business reason or company restructuring.

If an employee is fired with cause, they will need to explain their justification for termination. The employer must show clear, documented evidence of the misconduct. Without a valid reason and supporting proof, the termination could be deemed wrongful dismissal.

Can you be fired without warning in Canada?

Yes, in Canada, an employer can terminate an employee without warning as long as they provide proper notice or pay in lieu of notice, as required by employment standards legislation and the employment contract. This is referred to as termination without cause.

In this instance, employees must receive written notice or severance pay based on the employee’s length of service. The decision cannot be discriminatory or retaliatory.

If you are fired with cause, you can be fired without notice or pay. In these situations, employees are fired for serious misconduct, such as theft, fraud, violence, harassment, insubordination, breach of confidentiality or repeated performance issues.

A final word on considerations before firing an employee

Firing an employee in Canada requires more than just delivering difficult news. It requires understanding and following the proper employee termination laws and procedures. Employers must comply with Canadian employment standards. By handling the process carefully and respectfully, you can reduce the risk of wrongful dismissal claims and ensure compliance with provincial and federal labour laws.

Reach out to AugmentHR if you need assistance with compliance, performance management, and other HR services.

Cheryl Petruk has over 25 years of progressive experience in human resources and organizational leadership. Cheryl provides strategic guidance to clients across various industries, offering tailored solutions in HR policy development, recruitment and retention strategies, employee relations, organizational design, and leadership development.

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