Looking for a new job while still employed is a common part of career development. Whether motivated by better compensation, professional growth, or workplace dissatisfaction, employees frequently explore new opportunities before leaving their current positions.
However, job searching can become complicated when an employer discovers that an employee is considering leaving. A LinkedIn update, an overheard conversation, or an unexpected reference request may raise questions about the employee‘s commitment to their existing role.
Can an Ontario employer legally terminate an employee simply for looking for another job? The answer depends on the circumstances, including the employee’s conduct, contractual obligations, and whether the employer has grounds to dismiss the employee for cause.
Can an Employer Fire an Employee for Looking for Another Job?
In Ontario, employers generally have the right to terminate a non-unionized employee without cause, provided they comply with applicable employment standards, contractual obligations, and common-law notice requirements. This means an employer may be able to dismiss an employee after discovering they are actively pursuing other opportunities.
However, looking for another job does not automatically constitute just cause for dismissal. There is an important distinction between an employer’s ability to terminate employment and its ability to do so without providing notice or termination compensation.
Under Ontario’s Employment Standards Act, 2000 (ESA), most eligible employees are entitled to minimum notice of termination or termination pay. Depending on their employment contract and circumstances, employees may also have additional common-law entitlements. An employer who dismisses an employee for job hunting may therefore face a wrongful dismissal claim if the appropriate compensation is not provided.
Does Job Hunting Constitute Just Cause for Dismissal?
Just cause generally involves employee misconduct serious enough to justify ending the employment relationship without providing common-law reasonable notice. Simply submitting applications, attending interviews, or considering a career change will not ordinarily meet this threshold.
However, conduct accompanying a job search may raise concerns. Examples include using confidential company information to secure a position with a competitor, deliberately neglecting work responsibilities, or soliciting clients for a competing business.
Even where misconduct is alleged, just cause requires a contextual assessment. Furthermore, the ESA’s exception for wilful misconduct, disobedience, or wilful neglect of duty is distinct from the common-law just cause standard. An employee dismissed for cause under one standard may not necessarily lose their statutory termination entitlements.
Employees Still Owe Duties of Loyalty and Confidentiality
Employees have certain obligations to their employers throughout the employment relationship, including duties of fidelity, honesty, and confidentiality. However, these obligations do not generally prevent employees from exploring alternative opportunities.
The distinction between legitimate job searching and conduct that conflicts with an employee’s existing obligations becomes particularly important where competing businesses are involved. An employee who interviews with a competitor may be acting within their rights, while sharing confidential pricing information or customer lists could breach existing obligations.
Senior employees and individuals occupying fiduciary positions may also have heightened obligations. The nature of the employee’s role, contractual commitments, and conduct can all influence the legal analysis.
Can Employees Use Work Time or Company Resources to Apply for Jobs?
Using company computers, email accounts, or other employer-owned resources for personal job applications may contravene workplace policies. Similarly, attending interviews during scheduled working hours without authorization could raise concerns about attendance, honesty, or performance.
The consequences depend on the circumstances. For example, reviewing a job posting during an authorized break is different from repeatedly missing assigned work to attend interviews while falsely reporting the time as worked.
Such distinctions may become relevant when evaluating disciplinary action or determining whether an employer can establish just cause for dismissal.
Can an Employer Prohibit Employees from Applying to Competitors?
Some employment contracts contain restrictive covenants intended to protect confidential information and business relationships. These may include confidentiality agreements, non-solicitation clauses, or non-competition restrictions.
Ontario generally prohibits employers from entering into non-compete agreements with employees, subject to limited exceptions, including certain executive positions and qualifying business-sale arrangements. Agreements entered into before the statutory prohibition took effect may require a different analysis.
Other contractual obligations, particularly those concerning confidential information or solicitation, may remain enforceable. The terms of an employee’s employment contract can therefore influence which restrictions apply during employment and after the relationship ends.
What Happens if an Employer Discovers an Employee’s Job Search?
Employers may discover that employees are considering leaving through professional networking websites, recruitment agencies, workplace conversations, or reference requests.
Discovery alone does not establish misconduct. However, employers may respond by discussing retention opportunities, succession planning, or workplace concerns. Others may initiate performance reviews, disciplinary proceedings, or termination.
Where disciplinary action follows the discovery of a job search, relevant considerations may include whether performance concerns existed beforehand, whether workplace policies were violated, and whether the employer’s response was proportionate to the conduct involved.
Can an Employer Make Working Conditions Worse After Discovering a Job Search?
An employer may respond to an employee’s perceived intention to leave by reducing responsibilities, removing important projects, or changing compensation.
Although not every workplace adjustment constitutes a breach of employment law, significant unilateral changes to fundamental employment terms may amount to constructive dismissal. This can occur when an employer substantially changes the employment relationship without the employee’s agreement.
Whether an employer’s response constitutes constructive dismissal depends on the nature of the changes and the broader employment circumstances. An employee’s interest in other opportunities does not automatically eliminate their existing contractual protections.
Are Employees Entitled to Time Off for Job Interviews?
Ontario employees do not generally have an automatic statutory entitlement to paid time off for job interviews while still employed. However, effective November 27, 2025, Ontario introduced job-seeking leave under the ESA. Eligible employees who have received notice of a mass termination may take up to three days of unpaid, job-protected leave during the notice period for employment-related activities, including interviews, resume preparation, and job searches.
This entitlement is subject to specific eligibility and notice requirements and does not apply to every employee considering a career change.
What Happens to Termination Pay if an Employee Is Fired While Job Hunting?
When an employer dismisses an employee without just cause, compensation depends on several factors. The ESA establishes minimum termination entitlements for eligible employees. Additional common-law reasonable notice may apply depending on the employment agreement, length of service, age, position, and availability of comparable employment.
An employee who was already searching for another job when dismissed does not automatically lose these entitlements. However, existing job opportunities and subsequent employment may become relevant to wrongful dismissal damages and the employee’s obligation to mitigate their losses.
An employer may also offer a termination package intended to resolve outstanding employment entitlements. Whether the package satisfies the employer’s legal obligations depends on the employment agreement and applicable law.
Understanding the Difference Between Job Searching and Misconduct
Searching for another job is not ordinarily a breach of an employee’s obligations. However, the activities accompanying that search may raise legal concerns where they involve dishonesty, misuse of confidential information, conflicts of interest, or neglect of employment responsibilities.
Ontario employment law distinguishes between an employer’s ability to terminate employment without cause and its ability to dismiss an employee without providing required compensation. Understanding this distinction is central to assessing the consequences when an employee’s search for another opportunity becomes known.
Haynes Law Firm: Advising Ontario Employees and Employers on Termination and Wrongful Dismissal
Haynes Law Firm provides employment law representation to employees and employers throughout Toronto, the Greater Toronto Area, and across Ontario. The firm assists with wrongful dismissal, termination packages, employment contract disputes, constructive dismissal, and employment discrimination matters.
If you have been terminated after looking for another job, or are an employer considering the legal implications of an employee’s job search, contact Haynes Law Firm online or call (416) 593-2731 to discuss your options.
