Statutory Severance Pay

Matthew S. Langer — Fri, 21 Jun 2019 16:00:48 +0000

Most employees are aware that they are owed termination pay when they are fired. What many employees and even some employers don’t know is that if certain circumstances exist, statutory severance pay is also owed. To simplify things and to provide a general overview of severance payments, an employee will receive approximately 1 week of severance pay per year of service (up to a maximum of 26 weeks).

An employee qualifies for statutory severance pay if the employee has been employed for 5 or more years AND the employer has a payroll in Ontario of at least $2.5 million OR because 50 or more employees have been terminated within a 6 month period.

If you have worked for over 5 years and you worked for a large company that employees over 50 people, you could potentially fit within the requirements for statutory severance pay. This is a mandatory payment that all employers must pay if the above noted qualifications are met. Don’t assume your employer is paying you all that you are entitled to.

Statutory severance pay must be paid either 7 days after you have terminated or on the next regular pay day from the day that you were terminated. Don’t let your employer off the hook, find out if you are entitled to extra pay.

If you believe you might qualify for severance pay on top of normal termination pay, you should speak with an employment lawyer who can determine your proper financial entitlements.

This blog is for educational and informational purposes only and does not constitute legal advice. Results of cases described on this website may not be typical and are not guaranteed. The accuracy of the blog posts is not guaranteed. Contacting Langer Law or using this website does not create a lawyer-client relationship.

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Termination Pay – Statutory Minimums

Matthew S. Langer — Sat, 27 Oct 2018 03:05:33 +0000

The Employment Standards Act (“ESA”) outlines what an Employer must pay to a terminated Employee for termination pay. These minimum payments are just that, MINIMUMS. Don’t be short changed by your Employer when they offer you 1 week per year of service. Employer’s hope you take your ESA minimums.

The ESA minimums for termination pay are as follows:

Length of Employment	Termination Pay Owed
Less than 1 year	1 week
1 year but less than 3 years	2 weeks
3 years but less than 4 years	3 weeks
4 years but less than 5 years	4 weeks
5 years but less than 6 years	5 weeks
6 years but less than 7 years	6 weeks
7 years but less than 8 years	7 weeks
8 years or more	8 weeks

This is what an Employer must paid to an employee either 7 days after the employee’s employment is terminated or on the employee’s next regular pay date, whichever is later. More importantly is that an Employee can be entitled to substantially more than the minimums when no employment contract was signed at the beginning of the employment relationship. Other important factors are the age of the Employee, the salary of the Employee at the time of termination and the likelihood of getting a comparable job.

Don’t settle for a few weeks when you could potentially be entitled to a few months.

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Termination Pay Archives - Langer Law

Statutory Severance Pay

Termination Pay – Statutory Minimums