Other Langauge Home
Firings & Layoffs

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
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