In Canada, it’s often better to be fired without cause than to quit your job. If your employer terminates you, you could receive a severance package and qualify for Employment Insurance (EI). If you voluntarily resign, you can lose those entitlements.

But the right decision depends on your situation. Being fired for serious misconduct, leaving an unsafe workplace or being pressured to resign can change your rights.

Before quitting, find out what you could be giving up.

⚠️ Thinking About Resigning? Don’t quit simply because your employer wants you gone or tells you resignation will look better. You could be giving up a severance package worth months of pay.

On This Page:

Is It Better to Quit or Get Fired?

Being fired without cause usually provides better financial protection than voluntarily quitting. Here’s how the two situations compare.

Your Rights If You Quit If You’re Fired Without Cause
Severance Pay Usually none Often owed
EI Benefits May be denied without just cause Often available if eligible
Future Employment You can explain why you left You can explain the termination
Legal Rights Some claims may be lost Termination compensation rights may apply

The important distinction is why your employment ended. A termination without cause is different from being dismissed for serious misconduct.

Do You Get More Severance if You Quit or Get Fired?

If you’re fired without cause, you can be entitled to severance pay. If you voluntarily quit, you’re usually not.

For non-unionized employees in Ontario, Alberta and BC, full severance can reach up to 24 months’ pay in appropriate cases.

The amount depends on factors including your age, length of service, position, employment contract and ability to find similar work.

If you resign voluntarily, you may lose the opportunity to claim this compensation.

There are exceptions. If your employer effectively forced you to quit, your departure could legally count as a termination.

Learn more about severance pay if you quit or use our free Severance Pay Calculator to estimate what a termination package could be worth.

Is It Better to Quit or Get Fired for EI?

Being fired without cause usually makes it easier to qualify for EI than voluntarily quitting.

If you quit without just cause, Service Canada can deny regular EI benefits. However, you can still qualify if you had just cause for leaving and no reasonable alternative.

Examples can include serious harassment, unsafe working conditions or major unwanted changes to your job.

Getting fired doesn’t automatically guarantee EI either. If Service Canada determines that you lost your job because of misconduct, benefits can be denied.

EI eligibility and severance rights are separate legal questions. A decision about one doesn’t automatically determine the other.

For more information, see Service Canada’s rules on voluntarily leaving a job.

What if Your Employer Wants You to Quit Instead of Firing You?

You don’t have to resign simply because your employer asks you to.

Some employers pressure workers to leave voluntarily rather than formally terminating their employment.

Common situations include:

  • Your manager tells you to resign or be fired
  • Your employer says quitting will look better on your record
  • Your pay is significantly reduced
  • You’re demoted or stripped of major responsibilities
  • Your working conditions become intolerable

A forced resignation or major unwanted change to your job can amount to constructive dismissal. This means the law can treat you as having been fired, even without a formal termination letter.

However, not every difficult workplace situation qualifies. Resigning too quickly can put your severance at risk.

Read our guides to forced resignation in Canada and constructive dismissal.

⚠️ Told to Resign or Be Fired? Don’t sign a resignation letter on the spot. Ask for the proposed terms in writing and have your situation reviewed before agreeing to leave.

What Should You Do Before Quitting Your Job?

If you’re unhappy at work or believe your employer wants you gone, take these steps before making a decision.

  1. Don’t resign under pressure. You don’t have to make an immediate decision simply because your employer demands one.
  2. Keep important records. Save your employment contract, pay information and relevant workplace communications that you’re entitled to retain.
  3. Get proposed changes in writing. If your employer cuts your pay, demotes you or changes your hours, document what happened.
  4. Check your severance rights. Find out what you could receive if your employer terminated you instead.
  5. Speak to an employment lawyer. Understand your options before resigning, refusing a change or signing an exit agreement.

Already fired? Don’t sign a severance release before checking whether the offer reflects your full entitlement.

Does It Matter Where You Work in Canada?

Yes. Employment standards differ between provinces, although the risks of resigning without checking your rights are similar.

For province-specific information about major workplace changes and forced resignations, see:

For termination compensation across the three provinces, see our Severance Pay Canada guide.

Quitting vs. Getting Fired: Frequently Asked Questions

Is It Better to Resign or Be Terminated?

If your employer plans to dismiss you without cause, resigning first can mean giving up severance and affecting EI eligibility. Check your rights before agreeing to resign.

Does Getting Fired Look Bad on Your Record?

Being fired doesn’t automatically prevent you from finding another job. You can explain the circumstances of your departure to future employers. A termination without cause doesn’t necessarily mean you did anything wrong.

Can You Get Severance if You’re Fired for Poor Performance?

Yes. Poor performance doesn’t automatically mean your employer can deny severance. A termination for cause requires more than an employer simply being unhappy with your work.

Can You Quit and Still Receive Severance?

Possibly. If you were constructively dismissed, forced to resign or offered an agreed departure package, you can have compensation rights even though you left your job.

Should You Quit Before Your Employer Fires You?

Not without reviewing your options. Quitting first could cost you severance and EI eligibility. If your employer is threatening termination, get advice before making a decision.

Thinking About Quitting? Check Your Rights First

Resigning can be a costly decision, particularly if your employer has already made major changes to your job or is trying to push you out.

The employment lawyers at Samfiru Tumarkin LLP help non-unionized employees in Ontario, Alberta and BC understand their severance rights, forced resignation and constructive dismissal.

Before you quit, sign a resignation letter or accept an exit package, find out how much compensation you are owed.

Before you sign, always check first.

➡️ Get a Consultation or call 1-855-821-5900.

Advice You Need. Compensation You Deserve.

Consult with Samfiru Tumarkin LLP. We are one of Canada's most experienced and trusted employment, labour and disability law firms. Take advantage of our years of experience and success in the courtroom and at the negotiating table.

Get help now