Losing a Job: Firings and Layoffs
What about "severance" and "severance pay"? (Note: This information pertains to Ontario Residents only.)
Your employment is severed if:
- You're dismissed or laid off, even if your employer goes bankrupt or broke.
- You're laid off for 35 weeks or more in a period of 52 weeks in a row.
- You're given proper notice and you quit after giving two weeks written notice, and your last day of work is during the notice of termination period.
- You're "constructively dismissed" and resign within a reasonable period of time.
It's your right to get severance pay if:
- You've been an employee for five or more years. And,
- Your employer has at least a $2.5 million payroll in Ontario, or has permanently laid off 50 or more workers in a six-month period because part or all of the business ended.
You're not covered by the rules for severance pay if:
- You're a construction worker.
- You say "no" to a reasonable job offer from your employer.
- You're guilty of willful misconduct, disobedience or willful neglect of duty that isn't trivial, and hasn't been ignored by your employer.
How much severance pay do I get? You get:
Your regular wages for a regular work week
The number of full years worked
and the number of months worked divided by 12 for less than a full year.
You can get a maximum of 26 weeks of severance pay.
If you don't work a regular work week or are paid other than for time worked (for example, commission or piece work), then other rules apply.
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