The statutory MINIMUM you're owed when let go — notice/termination pay plus severance pay — under the Ontario ESA or the federal Canada Labour Code. Common-law reasonable notice is often higher.
Statutory minimums only. All figures in Canadian dollars.
| Rule | Detail |
|---|---|
| Ontario notice | <1yr=1wk, 1–3yr=2, then 1 wk/yr, cap 8 weeks (after 3 months) |
| Ontario severance | 1 week/year (+ months÷12), cap 26 — only if 5+ yrs AND payroll ≥ $2.5M (or 50+ let go) |
| Federal notice | 2 weeks from 3 months; 3 weeks at 3 yrs; +1 wk/yr, cap 8 (since 1 Feb 2024) |
| Federal severance | Greater of 2 days' wages/year or 5 days' wages — after 12 months |
| Basis | Regular wages for a regular work week |
These are STATUTORY MINIMUMS. In Ontario, termination pay and severance pay are separate and can both apply. Common-law 'reasonable notice' is often significantly more. Source: ontario.ca / canada.ca.
Ontario ESA severance pay is one week of regular wages for each completed year of employment, plus a fraction for extra months (months ÷ 12), capped at 26 weeks. It applies only if you worked 5+ years AND the employer's payroll is at least $2.5 million (or 50+ employees were severed within six months). It is separate from, and paid on top of, termination (notice) pay.
Termination pay replaces the notice period (1 week per year up to 8 weeks). Severance pay is an extra entitlement for long-service employees of larger employers (1 week per year up to 26 weeks). A qualifying employee can receive both.
For federally regulated employees (banks, airlines, telecoms, interprovincial transport, etc.), after 12 months you're owed the greater of two days' wages per year of service or five days' wages, on top of graduated notice of 2–8 weeks.
No — it's the legal minimum. Non-unionized employees dismissed without cause are usually entitled to common-law 'reasonable notice', which can be several months and far exceeds the ESA/Code minimums. Get legal advice before signing a release.
Statutory termination and severance generally don't apply if you resign or are dismissed for wilful misconduct/just cause. They apply to without-cause terminations and layoffs.