Ontario Severance Pay Calculator

Are You Being Shortchanged on Your Severance?

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FAQs

In Ontario, the answer depends on what type of entitlement is being discussed. Under the Employment Standards Act, termination pay and severance pay are separate statutory concepts, and statutory severance pay only applies if specific eligibility requirements are met. Common law severance, often described as reasonable notice damages, is different and may be significantly higher. It is usually assessed based on factors such as age, length of service, role, compensation, and the availability of comparable employment.

There is no single answer. Some employees are entitled only to minimum amounts under the Employment Standards Act. Others may have broader common law entitlements depending on their contract and the circumstances of the dismissal. The calculator is intended to provide an estimated range, not a final legal determination.

Potential entitlements may depend on factors such as age, length of service, position, compensation structure, and how difficult it may be to find comparable employment. The employment contract also matters, especially where there is a termination clause that may affect the employee’s entitlements.

ESA entitlements are statutory minimum standards. Common law notice may be greater, but it depends on the facts and on whether the employment contract validly limits the employee to minimum standards. The two should not be treated as interchangeable.

In many cases, yes. Employers often present a package as final even when there may be room to negotiate. Whether a package should be negotiated depends on the wording of the contract, the employee’s role, length of service, compensation and the circumstances of the termination.

Not necessarily. An employer’s deadline should not automatically be treated as the end of the matter. Before signing, the employee should understand whether the offer reflects only minimum statutory entitlements or whether there may be a basis to seek more.

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