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
Multiplied by
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.

Back to Firings & Layoffs - Ontario

Last Updated: 03.01.07