Last Chance Agreements Ontario

Last Chance Agreements in Ontario: What Employers Need to Know

In Ontario, employers have the option to use last chance agreements (LCA) to address employee misconduct and give employees a final opportunity to keep their job. As a professional, I have researched this topic to provide a comprehensive guide on LCAs in Ontario.

What is a Last Chance Agreement?

A last chance agreement is a contract between an employer and an employee who has committed a serious violation of company policy. The agreement stipulates that the employee will be given one last chance to correct their behavior and avoid dismissal. In an LCA, the employer typically lays out specific conditions that the employee must meet such as attending counseling sessions, achieving certain performance objectives, and following company policies. The agreement also states that if any of these conditions are not met, the employee will be terminated.

When Can Employers Use Last Chance Agreements?

Employers may use last chance agreements in Ontario when an employee has committed a serious violation such as theft, harassment, or violence in the workplace. LCAs are typically used when the employer believes that the employee can be rehabilitated and that termination would be an extreme measure.

It is important to note that employers should not use LCAs as a way to avoid proper investigations or to neglect their duty to provide a safe work environment. Employers should also ensure that LCAs are not discriminatory and that they do not violate any human rights codes.

Benefits of Last Chance Agreements

Last chance agreements offer several benefits to both employers and employees. They allow employers to retain valuable employees who have made a mistake and are willing to improve. Additionally, they can help avoid litigation costs associated with wrongful termination claims. For employees, LCAs provide a final opportunity to keep their job and maintain their livelihood.

How to Implement an LCA

Employers who wish to use last chance agreements should take the following steps:

1. Clearly define the employee`s misconduct and investigate the allegations.

2. Notify the employee of the proposed LCA and explain the terms and conditions.

3. Allow the employee to seek legal counsel and review the agreement.

4. Negotiate the terms of the agreement with the employee.

5. Execute the agreement and monitor the employee`s compliance.


Last chance agreements can be an effective tool for employers in Ontario to address employee misconduct and provide a final opportunity for employees to keep their job. It is important for employers to follow proper procedures and avoid any discrimination or violations of human rights codes. By properly implementing last chance agreements, employers can retain valuable employees and avoid costly legal disputes.