Losing your job brings immediate concerns that go beyond shock and frustration.
For many, the first question is practical: “Can I apply for Employment Insurance (EI) benefits after being fired?” But right behind that comes a wave of other worries. What if they said I was let go for cause? Will my severance affect my EI payments? Can I still sue for wrongful dismissal if I’m collecting EI?
Every dismissal is fact-specific. If you’re questioning whether your firing was legal, or how much severance you are entitled to, that requires a detailed legal review of your situation. We’ll explain how those factors interact with EI, but the focus here is on helping you understand your immediate ability to claim EI benefits after being let go.
Can You Collect EI If You Get Fired in Canada?
Yes. You can receive employment insurance benefits after being fired, but it depends on the circumstances. The main eligibility criteria question Service Canada considers for this temporary financial assistance is whether you were dismissed for “just cause.” Just cause refers to serious misconduct, such as theft, fraud, or wilful insubordination.
In practice, many employers label terminations as “for cause” even when the conduct in question doesn’t meet this strict standard. Service Canada will not accept the employer’s word without conducting its own assessment. If your dismissal doesn’t meet the legal threshold of serious misconduct, you can qualify for EI benefits.
If you were dismissed without cause (meaning your employer ended your job without alleging misconduct), you are generally eligible for Employment Insurance (EI). Service Canada will assess your eligibility, however, if your claim is denied you may still have options. Speak with an employment lawyer. A consultation will help clarify your rights and whether or not the decision can be challenged. You deserve a full and fair review.
Can You Get EI for Wrongful Dismissal?
Yes. Being wrongfully dismissed does not prevent you from applying for or receiving EI benefits. Wrongful dismissal refers to a situation where an employer terminates your employment without providing reasonable notice or adequate severance pay, as required by law. It’s a violation of your rights under employment law, but it does not automatically disqualify you from EI.
It’s important to understand that wrongful dismissal is a legal claim you may pursue against your employer, but it does not impact your ability to file for EI benefits in the meantime. Service Canada does not require a court or tribunal ruling to determine if you’re eligible. They look at the immediate facts of your dismissal.
What Disqualifies You from EI?
Several factors can disqualify you from EI benefits:
- Dismissal for serious misconduct (theft, assault, gross insubordination)
- Voluntary resignation
- Insufficient insurable hours during the qualifying period
- Failing to actively seek new employment
- Refusing suitable work without a valid reason
- Being unavailable for work (for example, due to travel or full-time schooling)
Even if an employer claims “just cause,” Service Canada will independently determine whether that claim is valid. Some dismissals that employers describe as “for cause” do not meet the legal standard. Employers may allege “just cause” to avoid paying severance, sometimes based on genuine belief, other times in error or without sufficient legal grounds. Regardless of intent, it’s not the employer’s opinion that decides your entitlements. Having an employment lawyer review your situation can determine whether the claim holds up and whether you’re still entitled to severance or EI.
Can You Get EI If Fired Without Cause?
Yes. Termination without cause is a common reason people apply for EI. This type of dismissal does not allege misconduct. If you’ve worked enough insurable hours, you will be eligible to receive EI, following the mandatory one-week waiting period before payments begin.
How Much Does EI Pay?
EI provides up to 55 percent of your average insurable weekly earnings, to a government-set maximum of approximately $650 per week as of 2025. The exact payment depends on your earnings history and your total insurable hours worked in the qualifying period.
Receiving severance pay can affect when your EI benefits start. Service Canada will allocate severance over a number of weeks, which can delay the start date of EI payments, but not reduce the total amount you are eligible to receive.
Severance Pay, Contracts, and EI
If you’ve received severance pay, this will delay but not disqualify your EI benefits. Service Canada views severance as income and will offset EI payments until the severance period is considered exhausted.
Your employment contract may also affect how severance is calculated. Some contracts contain termination clauses that limit severance to the minimum entitlements under Ontario’s Employment Standards Act, which might be less than your common law rights. For a deeper understanding of how contracts affect severance and termination rights, see our guide on Employment Contracts.
Note: If you were terminated between March 30, 2025 and October 11, 2025, Service Canada will waive the one-week waiting period. Even if you are also receiving severance, you will not face any delays in receiving EI benefits.
Independent Contractors and EI Eligibility
Independent contractors are generally not covered by Employment Insurance (EI). Unlike traditional employees, contractors do not have EI premiums deducted from their pay and are not automatically entitled to collect EI benefits if their contract ends. However, just because you were labelled as an independent contractor does not mean Service Canada will accept that classification at face value.
In many industries, individuals are hired as “contractors” but perform work that closely resembles that of a regular employee. If your working relationship involves fixed hours, a high degree of control by the company, and economic dependency on a single employer, you may be considered an employee in practice, even if your contract says otherwise.
If you have questions about your classification, a consultation with an employment lawyer can help you clarify your legal standing. If you are able to prove that you were an employee, rather than a contractor, prior to the end of your employment, and the CRA agrees with that classification, you could qualify for EI.
Filing an EI Claim After Being Wrongfully Terminated
If you believe you were wrongfully terminated, you should file your EI claim without delay. Even if your employer argues you were dismissed for cause, Service Canada will conduct its own review.
If your EI application is denied, you have the right to appeal. These appeals involve detailed assessments of your employment history, the reasons for dismissal, and whether the employer’s allegations hold up. Legal guidance can be critical in these situations, especially when the denial is based on alleged misconduct that you believe is unjustified.
If your employment situation has left you with questions or uncertainty, reach out to us online or call 416-640-2667. Our Toronto employment lawyers will take the time to understand your circumstances and provide clear, practical guidance on your next steps.
