How is Severance Pay Calculated in Ontario and BC?
The Employment Standards Act (ESA) provides the minimum standards for termination pay and severance – in general, one week of severance pay for each year of employment. However, almost all non-union employees are entitled to significantly more severance pay than the minimum ESA requirement.
Ontario’s and BC’s system of law, called the “common law”, has evolved over time through thousands of court and tribunal decisions. With common law severance pay, the accurate calculation of severance entitlements depends on many factors, including the employee’s position.
Our Ontario and BC Severance Pay Calculator allows you enter these factors and determine an accurate severance pay range quickly and accurately. Try the calculator now or contact our experts on employment law to discuss your unique situation.
What You Need to Know About Severance Pay
An employee that is let go from their job – or terminated without cause – is entitled to compensation. This is referred to as severance pay in Ontario, severance pay in BC, termination pay or pay in lieu of notice. How much compensation, depends on a number of factors, including the person’s age, the length of employment, the type of job and whether the person signed a contract of employment. The only way an employer can completely avoid paying the employee this compensation is if it has “cause” to terminate the employment as a result of the employee’s wilful misconduct. That is extremely difficult for the employer to prove.
An employee’s entitlements are NOT one week’s pay for every year of service, or any other such formula. Every case is different. The severance pay calculator allows an employee or employer in Ontario or British Columbia, provincially or federally regulated, to understand their rights and obligations and find out how much severance pay is owed.
Wrongful Dismissal and Severance Pay
A wrongful dismissal occurs when an employee is let go without cause from their job and not provided with a severance package, or is given an inadequate amount of severance pay. If that happens, a wrongful dismissal lawyer can help secure the appropriate amount of compensation. They can also help an individual avoid a rejection when they apply for Employment Insurance benefits.
Employment lawyer Lior Samfiru explains an employee’s rights when they are dismissed without cause.
Get the Severance You Are Owed
Contact one of Canada’s most experienced and trusted employment law firms to find how you can obtain your fair severance package.