How Much Severance Pay in Ontario Should I Get?
Severance Pay in Ontario Should I Get
Many people have misconceptions about what constitutes a fair severance package. They think that two weeks pay is a minimum, or they believe that one week’s pay for every year of employment is the maximum they can get. As an employment lawyer and the host of Canada’s only legal talk show on television and radio, I regularly hear myths and misperceptions about what a severance package should look like. The truth is, an equitable severance package is based on both provincially mandated minimums and common law standards.
The provincially mandated minimums are provided under the Employment Standards Act (ESA). severance pay Ontario is a specific payment required by the ESA, and it is calculated as one week of regular wages for each complete year of employment up to a maximum of 26 weeks. This severance is paid in addition to the employee’s termination notice.
Generally, the larger the employer and the longer an employee has worked for the company, the higher the severance package will be. This is because the ESA requires larger employers to provide terminated employees with more compensation than smaller employers. The ESA also requires that severance pay be paid regardless of any provisions set out in an employment contract, which could limit the employee’s entitlements to a lower amount.
How Much Severance Pay in Ontario Should I Get?
A severance package can include any form of compensation an employee is owed, including wages, bonuses, car allowances, commissions, and even vacation leave. A severance package is a financial safety net that gives former employees the funds they need to find new employment while protecting them from loss of income and other economic hardships.
In a wrongful dismissal case, the severance package is determined by an arbitrator or judge. An experienced wrongful dismissal lawyer can help you navigate the process of obtaining a satisfactory severance package. The lawyer will review the facts of your situation and calculate what you are owed in terms of severance pay, including any benefits, bonuses, or other compensation you may be entitled to.
An employer might try to avoid giving an employee a large severance package by forcing them to resign or retire, but this can be considered constructive dismissal, which is a form of discrimination, and could result in human rights damages. A severance package can also be an important part of an employee’s transition to retirement or a new job, and a good lawyer will work to ensure that you receive an appropriate amount.
Many employers attempt to restrict their severance pay obligations through a termination clause that is not properly worded or is out of date with changes to the law. An experienced wrongful dismissal lawyer can review your employment contract to see if any of the termination clauses are valid, and they can assist you in ensuring that you receive the minimum severance pay you are entitled to under provincial law.