What You Need to Know About Severance Pay

An employee that is let go from their job – or terminated without cause – is entitled to compensation. This is referred to as severance pay in Ontario, severance pay in BC, termination pay or pay in lieu of notice. How much compensation, depends on a number of factors, including the person’s age, the length of employment, the type of job and whether the person signed a contract of employment. The only way an employer can completely avoid paying the employee this compensation is if it has “cause” to terminate the employment as a result of the employee’s wilful misconduct. That is extremely difficult for the employer to prove.

An employee’s entitlements are NOT one week’s pay for every year of service, or any other such formula. Every case is different. The severance pay calculator allows an employee or employer in Ontario or British Columbia, provincially or federally regulated, to understand their rights and obligations and find out how much severance pay is owed.

Wrongful Dismissal and Severance Pay

A wrongful dismissal occurs when an employee is let go without cause from their job and not provided with a severance package, or is given an inadequate amount of severance pay. If that happens, a wrongful dismissal lawyer can help secure the appropriate amount of compensation. They can also help an individual avoid a rejection when they apply for Employment Insurance benefits.

Employment lawyer Lior Samfiru explains an employee’s rights when they are dismissed without cause.