In Ontario, employees who are terminated or laid off are generally entitled to severance pay if have been employed by the same employer for at least five years. Severance pay is calculated based on the employee's length of service and their salary at the time of termination.
An employee who is terminated without just cause is entitled to receive pay in lieu of notice of termination, which is also known as severance pay. This means that the employer must pay the employee an amount equivalent to their salary for the notice period that the employee would have been entitled to receive if the employer had given them proper notice of termination.
The notice period that an employee is entitled to receive depends on the length of their employment. An employee who has been employed for less than three years is generally entitled to one week of notice for each completed year of employment. An employee who has been employed for more than three years is generally entitled to two weeks of notice for each completed year of employment, up to a maximum of eight weeks.
There are some exceptions to the requirement to pay severance pay. For example, if an employee is terminated for just cause (such as theft, fraud, or serious misconduct), they are not entitled to severance pay. Additionally, some employees may have signed a contract that waives their right to severance pay or that sets out a different severance pay entitlement.
It is important to note that the above information is a general overview of the law on severance pay in Ontario. The specific entitlements of an employee may vary based on the circumstances of their termination and the terms of their employment contract. If you have questions about your entitlements to severance pay, you should seek the advice of a qualified employment lawyer.
Please note that this article is only to be used as general information and it does not constitute legal advice. Contact our firm to discuss your specific legal needs, or to schedule a free initial consultation with a lawyer.
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