Severance pay in Ontario can be as much as 24 months’ pay. Your age, years of service, job, employment contract and prospects of finding similar work all affect what you’re owed.
Your employer’s first offer might cover only the legal minimum. Before you sign, check which payments apply to you and whether the package reflects your full entitlement.
| Type of payment | Who may qualify? | How much? |
|---|---|---|
| ESA termination pay | Most employees after at least three months, if sufficient working notice isn’t provided | 1–8 weeks under individual termination rules |
| ESA statutory severance | Employees with five or more years whose employer meets the payroll or business-closure test | Up to 26 weeks, separately from termination pay |
| Common law severance | Non-unionized employees dismissed without cause whose contract doesn’t validly limit their entitlement | Can reach 24 months’ pay |
These amounts aren’t all added together. ESA termination and severance payments count toward your total common law entitlement. Qualifying mass terminations have different notice rules, reaching 16 weeks.
? Check Your Offer: Use our free, anonymous Severance Pay Calculator for an initial estimate. Then have your contract and complete package reviewed before accepting.
On This Page:
Is Severance Pay Mandatory In Ontario?
Most non-unionized employees dismissed without cause are owed notice or compensation. What people call “severance” can include termination pay, statutory severance and a larger common law entitlement.
You don’t need five years of service to have severance rights. That threshold applies to ESA statutory severance. Short-service, part-time and hourly employees can still be owed compensation.
If you’re unionized, contact your union about your package. If you work for a bank, airline or another federally regulated employer, see our federal severance guide. Ontario’s ESA minimums don’t govern those workplaces.
How Much Severance Pay Are You Owed In Ontario?
There’s no automatic one-week-per-year or one-month-per-year formula for your full common law severance. Two people with the same years of service can be owed different amounts.
The assessment considers:
- Your age: Finding similar work can become harder later in your career.
- Your service: Time with the employer matters, but even a short-service employee can be owed several months.
- Your job: Responsibilities, skills and available opportunities affect the assessment.
- Your employment contract: An enforceable termination clause can limit your entitlement.
- Your job prospects: The availability of comparable work matters.
Your package should also account for compensation beyond salary, where owed, including bonuses, commissions, benefits, pension contributions and equity. Learn more about the factors used to assess severance.
For senior roles and complex compensation packages, our Toronto executive severance lawyers can help you identify and pursue the full compensation you’re owed.
For salary comparisons in dollars, use our Ontario severance pay chart and calculation examples.
What Are Ontario’s Minimum Termination And Severance Payments?
ESA Termination Pay
After at least three months of continuous employment, most employees qualify for written notice, pay instead of notice, or a combination. Under the individual termination rules:
| Length of employment | Minimum notice or pay |
|---|---|
| 3 months to less than 1 year | 1 week |
| 1 year to less than 3 years | 2 weeks |
| 3 years to less than 4 years | 3 weeks |
| 4 years to less than 5 years | 4 weeks |
| 5 years to less than 6 years | 5 weeks |
| 6 years to less than 7 years | 6 weeks |
| 7 years to less than 8 years | 7 weeks |
| 8 years or more | 8 weeks |
Your employer can satisfy the notice requirement through proper working notice. See Ontario’s termination rules for exceptions and mass-termination requirements.
ESA Statutory Severance Pay
This separate payment requires at least five years of employment and an employer that:
- Has a global payroll of at least $2.5 million, or
- Severed 50 or more employees within six months because all or part of the business permanently closed.
Under Ontario’s statutory severance rules, the formula is:
Regular weekly wages × (completed years + completed additional months ÷ 12), capped at 26 weeks.
Example: A $27,000 Statutory Minimum
Assume you qualify for both payments, earn $1,500 a week and have 10 completed years for the statutory severance calculation, including required notice time. With no working notice provided:
- Termination pay: 8 weeks × $1,500 = $12,000.
- Statutory severance: 10 weeks × $1,500 = $15,000.
- Combined: $27,000 before tax, excluding vacation pay and other entitlements.
That calculation establishes the minimum in this example. Your full common law entitlement could be substantially higher. Read more about termination pay versus severance pay.
Real Severance Results For Our Ontario Clients
Our lawyers have helped employees challenge inadequate offers and secure substantial compensation. These cases show why the employer’s position deserves a closer look.
$330,000+ After A Demotion And Pay Cut
Joanna McFarlane’s employer tried to demote her and cut her salary by $90,000 when she returned from maternity leave. After approximately four years’ service, our team secured compensation based on 12 months: $290,615.81 after deducting replacement earnings, plus $40,000 in moral damages. Read about McFarlane’s $330,615.81 award.
$182,000+ After Being Fired Without Severance
Jocelyn Paul’s employer said it had grounds to fire her without severance. Our team challenged that decision and secured $182,822.84, based on 12 months’ compensation. The award included bonuses, benefits and other amounts beyond salary. Read about Paul’s wrongful dismissal win.
24 Months’ Pay And Benefits For A Dental Hygienist
After more than 33 years with a dental practice, Sandra Visaggio faced new contracts that threatened her income and job protections. Our team secured 24 months’ pay and benefits. The court awarded $110,294 after crediting amounts already provided, plus $19,938 in legal costs. Read about Visaggio’s 24-month result.
Each result reflects that client’s circumstances. Your entitlement requires an individual assessment.
Can Your Employment Contract Limit Severance?
Yes, if its termination clause is enforceable. Signing a contract doesn’t automatically make that clause valid. Wording that violates Ontario’s minimum standards can prevent an employer from relying on it.
Our firm defended a $157,071.57 award for a youth coordinator whose employer said she was owed only two weeks’ pay. The award covered the remaining term of her fixed-term contract. Read about Dufault’s appeal win.
Have the full agreement reviewed before assuming it limits you to the minimum. Our guide explains when termination clauses are enforceable.
What If You’re Laid Off, Quit Or Are Fired For Cause?
“It’s Only A Temporary Layoff”
An employer doesn’t automatically have the right to temporarily lay you off. A layoff imposed without that right can trigger constructive dismissal and severance rights immediately. Get advice promptly rather than assuming you must wait for a recall.
“You Quit, So You Get Nothing”
A voluntary resignation usually ends your right to severance. But leaving because of a major unwanted pay cut, demotion or other serious change can be different. Get advice before resigning. Read about severance when you quit.
“You Were Fired For Cause”
Your employer’s allegation doesn’t prove you’re owed nothing. Just cause and the ESA’s wilful-misconduct exception are different legal standards. Even when common law notice is unavailable, statutory payments may remain owing. Have the reasons reviewed if you were fired for cause.
When Must Severance Be Paid, And What About Signing Deadlines?
ESA statutory severance is due on the later of seven days after your employment is severed or your next regular payday. Instalments require your written or electronic agreement, or approval from the Director of Employment Standards.
A larger negotiated package can have different payment terms. Check how lump sums, salary continuance, taxes and EI affect your situation.
⚠️ Your Employer’s Signing Deadline Isn’t Your Legal Deadline. Missing the date on an offer doesn’t erase your severance rights.
Many wrongful dismissal claims must be started within two years. Other claims can have shorter deadlines. Don’t wait until a limitation period is close to expiring.
What Should You Do Before Signing A Severance Package?
- Keep the offer unsigned until you understand it. A release can end your ability to pursue more compensation.
- Gather your documents. Save your contract, termination letter, pay records, bonus plans and benefit information.
- Check the whole package. Review the amount, benefits, payment conditions and what happens if you find another job.
- Have a lawyer assess what you’re owed. Get advice before accepting or negotiating your package.
Get severance help in Toronto, Ottawa, Mississauga, Vaughan, Hamilton, Milton and communities across Ontario.
Get The Severance You’re Owed
Samfiru Tumarkin LLP’s Ontario employment lawyers help non-unionized employees secure the compensation they’re owed.
Having your offer reviewed doesn’t mean committing to a long court battle. Most severance disputes are resolved through negotiation. Our goal is to get you the compensation you deserve as quickly as possible, with as little stress as possible.
If your employer refuses to provide fair compensation, our court results show we’re prepared to take your case further.
Before you sign, always check first.