Guides · reviewed 2026-09-04

Wrongful dismissal up to $50,000: court or an ESA claim?

Legal information, not legal advice. Results depend on the facts of your case.

Legal information, not legal advice. This guide and our free tools give legal information. They do not give advice about your case. A licensed lawyer can give legal advice.

The answer

If your employer ended your job without cause and without fair notice, you can sue for wrongful dismissal. Small Claims Court takes claims up to $50,000.

Choose one path before you file anything. If you file an ESA claim for termination pay or severance pay, you cannot sue for wrongful dismissal over the same termination. You can withdraw the ESA claim within 2 weeks to keep the court route. The rule works both ways: if you sue first, you cannot file an ESA claim for the same termination.

The 2 paths

  • An ESA claim with the Ministry of Labour is free. It covers the ESA minimums, such as termination pay and unpaid wages.
  • A court claim can include common-law notice. Common-law notice is often larger than the ESA minimum. What you get depends on your contract and your facts.

You cannot run both paths on the same termination.

What to do

  1. Read the warning above before you file anything.
  2. Gather the documents: your contract or offer letter, the termination letter, pay records, and benefits records.
  3. Read your contract for a termination clause. A valid clause can limit you to the ESA minimums. Whether a clause is valid is a legal question; get advice.
  4. Estimate the claim: pay and benefits for a fair notice period, minus what the employer paid you.
  5. Is the total more than $50,000? You can limit the claim to $50,000 and give up the rest, or sue in the Superior Court. You cannot split one claim into two. Get advice first.
  6. Check the deadline: 2 years from the dismissal, in most cases.
  7. Send a demand letter: /demand-letter.
  8. Fill in Form 7A, file it, and pay $108: /build/7a.

You must look for work

Courts expect a dismissed employee to look for similar work. Money you earn in the notice period can reduce the award. Keep a record of every application, reply, and interview.

Deadlines and fees

  • ESA claim window: a complaint about a contravention more than 2 years old is treated as not filed.
  • Withdrawal window to keep the court route: 2 weeks after the ESA claim is filed.
  • Court claim: 2 years from discovery, in most cases.
  • File a claim: $108. Fix a trial date: $308.

Common mistakes

  • Do not file both an ESA claim and a court claim on the same termination.
  • Do not sign a release on the spot. Get advice first.
  • Do not stop your job search. Keep the records.
  • Do not wait. The 2-year clock runs from the dismissal, in most cases.

When to get a lawyer

Wrongful dismissal turns on your contract and your facts. Get legal advice before you file. Legal services provided by Mithril Law — Jonathan Kleiman, licensed Ontario lawyer.

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