Termination vs. Resignation: Legal Impacts

The difference between "terminating" and "resigning" from your job has significant legal consequences. In most cases, if you resign, you are not entitled to any notice or severance pay.

Termination by Employer

If an employer terminates your employment, they must provide you with notice or pay in lieu of notice in accordance with your employment contract or the Ontario Employment Standards Act.

Resignation by Employee

If you choose to leave your job, you are not entitled to any notice or severance pay. You must also provide the employer with the notice required by your employment contract.

Forced Resignations

If an employer forces you to resign by making your working conditions intolerable or by threatening to fire you if you do not quit, this is known as a constructive dismissal. In these cases, you are treated as if you had been terminated and are entitled to your full notice and severance pay.

Legal Protections

• Employment Standards Act: Sets out minimum notice and severance pay for terminated employees.
• Common Law: Often provides for much higher notice periods than the ESA minimums.
• Human Rights Code: Protects employees from termination based on discriminatory grounds.