In Ontario, employers have the right to terminate an employee’s employment based on performance as long as the termination is done in compliance with the Ontario Employment Standards Act (ESA) and other applicable laws. However, employers must follow certain procedures and guidelines when terminating an employee based on performance.

Firstly, employers must provide their employees with clear expectations and performance goals. This should be done in writing and communicated to the employee during onboarding or at the start of their employment. The employer should also provide employees with regular feedback and performance evaluations throughout their employment, highlighting areas where improvement is needed.

If the employee’s performance does not meet the employer’s expectations, the employer may take steps to improve the employee’s performance, such as providing additional training, coaching or counselling. If these efforts fail to improve the employee’s performance, the employer may choose to terminate the employee’s employment.

When terminating an employee based on performance, employers must ensure that they provide the employee with sufficient notice or pay in lieu of notice, as required by the ESA. This notice or pay in lieu of notice must be in accordance with the employee’s length of service with the company.

It is also important to note that employers cannot terminate an employee’s employment based on discriminatory reasons, such as race, gender, age, disability, or any other protected characteristic. Doing so would be a violation of the Ontario Human Rights Code and could result in legal action being taken against the employer.