The rights of employees and employers are regulated by a sometimes confusing combination of statutes (such as the Employment Standards Act ), and common law (judge-made law). Both employers and employees need to be advised as to their legal rights and responsibilities.

In the event of dismissal, an employer must give an employee reasonable working notice or pay in lieu of notice unless the employer has cause for dismissing the employee. The main issues in wrongful dismissal lawsuits are whether or not notice given has been "reasonable" and whether or not legal cause for dismissal has been established by the employer.