Severance Pay Calculator Mississauga, ON

Severance in Canada has two layers, and this calculator shows both. The first is the statutory minimum under the Ontario Employment Standards Act, 2000: a fixed number of weeks of notice or pay in lieu, set by your length of service. It is the least your employer can legally give you, and it is often what the first offer is based on. The second is common-law reasonable notice, which is what a court would usually award a non-unionized employee without a valid termination clause. Courts set it from the Bardal factors: the character of your job, your length of service, your age, and how hard it will be to find similar work. The common-law figure includes the statutory amount rather than adding to it, and it rarely goes above 24 months.

Ontario rules this calculator applies

Statutory notice

1 week after 3 months, 2 weeks after 1 year, then 1 week per year of service to a maximum of 8 weeks.

Severance pay

Ontario also has separate severance pay: with 5 or more years of service and an employer whose global payroll is $2.5 million or more, 1 week of pay per year of service (partial years by month), up to 26 weeks, on top of termination pay.

Common-law notice

Usually longer for older employees, senior or specialized roles, and people recruited away from secure jobs. Short-service employees often receive proportionally more than the "one month per year" rule of thumb suggests; long-serving senior employees usually top out around 24 months.

Termination clauses

Common-law entitlements are subject to any termination clause in your employment contract. A valid termination clause may limit your legal entitlements to the statutory minimum, or some other amount less than common law. It is recommended to have a lawyer review your termination clause to determine whether it is legally enforceable.

Other pay and benefits

Depending on your contract, pension contributions, benefits, a car allowance, stock options or RSUs, incentive pay and other remuneration that would have continued during the notice period may also be owed. An experienced employment lawyer can advise you.

Dismissal for cause

If your employer alleges just cause, you may be owed no notice at all if it is proven. The bar is high and the statutory test differs by province; this calculator assumes no cause.

Federally regulated work

Applies to federally regulated employers: banks, telecoms, airlines, interprovincial trucking and rail, and federal Crown corporations. These employees fall under the Canada Labour Code instead: 2 weeks of notice after 3 months, then 1 week per year of service from 3 years to a maximum of 8 weeks, plus severance pay of 2 days' wages per year of service (at least 5 days) after 12 months. Federally regulated employees may have additional unjust dismissal remedies, potentially including reinstatement. The estimate above does not assess those rights. Speak to an experienced employment lawyer to learn your rights.

Duty to mitigate

You are expected to look for comparable work. Income earned from a new job during the notice period can be deducted from what a court awards.

General information about Ontario employment law, not legal advice, and the estimate is not a guarantee of any outcome. Unionized employees, dismissals for just cause, fixed-term contracts and valid termination clauses can change the answer. An employment lawyer can tell you how these rules apply to you.