Severance Pay Ontario
Losing your job is a stressful and upsetting experience, regardless of whether you saw it coming or were completely blindsided. It comes with a flood of emotions and the immediate worry about where you’ll find another job and how to cover your bills in the interim. But it’s also often accompanied by questions about your entitlements, like if you’re eligible for a severance package and how much that package will be.
The answer to this question depends on several factors, including your employer’s size and industry. Larger employers will usually be required to provide employees with more severance pay than smaller companies. In addition, some industries have a higher rate of unemployment than others, which can impact the amount of severance pay an employee will be entitled to.
In general, the amount of severance pay an employer is required to provide is determined by the Employment Standards Act (ESA). The ESA states that an employer must pay severance pay Ontario to an employee who has been “severed” from employment. This is different than termination pay, which is the amount an employer must pay to an employee who is being terminated for cause.
Can Severance Pay Ontario Be Included in Collective Bargaining Agreements?
Generally, severance pay is calculated by dividing an employee’s total regular wages by the number of completed months in their employment and then multiplying that number by 12. The maximum amount of severance pay an employer must pay is 26 weeks of their normal wage. This is a minimum standard that applies to non-unionized employers, but unionized employers may be subject to different requirements.
While the ESA stipulates that employers must give workers reasonable notice of a not-for-cause termination, many Ontario workers don’t understand that there is a higher layer of protection that they receive as well. This relates to the concept of common law severance pay, which is based on judge-made laws that take into account various factors, such as your age, length of service and position in the company. This can increase the amount of your severance package by tens of thousands of dollars.
Some categories of employees are exempt from the minimum statutory severance pay required under the ESA, including federal employees, individuals employed through a college-approved work program and people who hold political, judicial, religious or elected trade union positions. An experienced employment lawyer can review the terms of your employment to advise you on whether you’re eligible for a severance payout.
If you have been dismissed without cause and are wondering whether you’re entitled to a severance package or how much that package should be, speak with an expert Toronto employment lawyer today. An experienced employee rights lawyer can use a variety of laws and factors to determine your entitlements and negotiate with your employer on your behalf.
If you have been fired, call the office of Stacey Ball, an experienced Toronto employment lawyer today. The firm offers free consultations and can help you understand your severance package and your options going forward.