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How is Severance Pay Calculated in Ontario?

How is Severance Pay Calculated in Ontario?

If you have recently been let go from your place of employment, you may be wondering about the possibility of receiving severance pay. In Ontario, most employees are entitled to some amount of severance pay, though the amount of severance pay an employee will receive can vary. If you are looking to learn more about how severance pay is calculated, speaking with an employment lawyer is a good place to start.

At Soni Law Firm, we are the dismissal lawyer Toronto employees turn to when looking to ensure they get the severance pay package that they deserve. We know that understanding how severance pay is calculated can seem complex. This is particularly true if you have been working for the same employer for many years. In this post, we outline some of the factors that are considered when determining severance pay amounts.

If you have been given a severance pay package that you feel is unfair, contact Soni Law Firm. We are committed to helping you understand and protect your rights as an employee and would be pleased to provide you with a free consultation.

How Do You Calculate Severance Pay in Ontario?

Calculating severance pay in Ontario can feel difficult as although there are minimum entitlements; some employees may be entitled to additional severance pay. In Ontario, employees who have been continuously employed by the same employer for at least three months are entitled to at least one weeks pay for every year of employment. However, if an employee has been working for five or more years, they may be entitled to an additional one week’s pay for each year of employment to a maximum amount of 26 weeks.

It is important to note that severance pay is not a standardized calculation, and there are many factors that can impact how much severance pay an employee may be entitled to. How long you have been working for your employer, your role, your salary amount, your experience level, and the availability of similar work can all play a role in determining how much severance pay you are entitled to. For example, an employee who has been working for the same employer for decades would likely be entitled to more severance pay than an employee who has only been working for the employer for a few years.

For an estimate on how much severance pay you could be entitled to see our Severance Pay Calculator.

When Should You Consider Speaking with an Employment Lawyer?

If you are looking to ensure that you are getting the full amount of severance pay that you are entitled to, speaking with a termination lawyer is always a good place to start. However, you’ll want to keep in mind that you will need to contact a lawyer promptly after your dismissal. An experienced employment lawyer can help you determine if your severance package is fair or if you should consider seeking more from your employer.

At Soni Law Firm, we know that being dismissed from your employment can be a stressful experience. Knowing your rights as an employee can help you to be prepared for an unexpected termination of employment. Contact us today to better understand your rights and entitlements as an employee and feel confident that you are getting the compensation you deserve.

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About Post Author


Rahul founded Soni Law Firm, a boutique employment, labour, and human rights law firm, with the goal of taking his Downtown Toronto litigation experience and making it accessible to Ontario’s Main Street employees and employers.