What happens if your employer cuts your salary in Ontario? [Video]

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In Ontario, the question of whether an employer can reduce your salary is a nuanced one. While employers do have some wiggle room to adjust pay within certain situations, significant reductions without your consent can lead to complex legal challenges. It’s crucial to understand your rights in these scenarios.

To examine the consequences of a salary cut by your employer, we spoke with Lior Samfiru, an employment lawyer and national co-managing partner at Samfiru Tumarkin LLP in Toronto, Canada’s leading firm specializing in non-unionized employee-side workplace law.

Can my employer reduce my pay in Ontario?

Simply put, no.

Your employer does not have the authority to significantly cut your pay without your consent. Minor salary reductions may be allowed, but these should not be detrimental to you as an employee. For example, if your employer imposes a pay cut of 15 per cent or more, it could be considered constructive dismissal.

What is constructive dismissal?

According to Samfiru, constructive dismissal …