Termination Best Practices: Protecting Your Organization

Getting Termination Right

Termination is one of the highest-risk activities in HR. Done poorly, it exposes your organization to wrongful dismissal claims, human rights complaints, and reputational damage. Done well, it protects everyone involved.

Legal Requirements

Canadian termination law varies by jurisdiction but generally requires:

• Reasonable notice or pay in lieu of notice
• Severance pay (where applicable)
• Continuation of benefits during notice period
• Written notice meeting minimum standards
• Proper ROE filing with Service Canada

Just Cause vs Without Cause

Most terminations in Canada are without cause — meaning the employer is ending the relationship for business reasons, not employee misconduct. Just cause terminations require extensive documentation of progressive discipline and must meet a very high legal standard.

Documentation

Maintain thorough documentation throughout the employment relationship:

• Performance reviews and feedback records
• Written warnings and improvement plans
• Training records and support provided
• Attendance and conduct records
• Any relevant correspondence

Calculating Severance

Statutory minimums are just the floor. Common law reasonable notice considers length of service, age, position and seniority, availability of similar employment, and whether the employee was induced to join. A termination package below common law entitlements invites legal claims.

The Termination Meeting

Plan carefully: choose a private location, have two company representatives present, keep the message brief and clear, present the termination letter and package, allow the employee to ask questions, and arrange for dignified departure.

Communication

After the termination, communicate appropriately with the team — acknowledge the departure without sharing details, reassign responsibilities promptly, and address any concerns about job security.

Common Pitfalls

Avoid these mistakes:

• Terminating without legal review of the package
• Using email or phone instead of in-person meetings
• Failing to consider human rights implications
• Not having a witness present
• Allowing the employee to return unsupervised
• Making promises you can't keep about references

After the Termination

Ensure IT access is promptly revoked, company property is returned, final pay and benefits are processed correctly, ROE is filed within five days, and the personnel file is updated and securely stored.