The Ontario Severance Pay Calculator

Severance Pay Calculator

Losing a job is a traumatic experience. Whether it was a planned firing or a surprise layoff, losing a job can throw a person’s life into disarray. In addition to the loss of a source of income, it can also leave an employee feeling unsure of where they will work next or how they will pay their bills in the interim. In order to make this transition as smooth as possible for an employee, employers often provide severance pay. A severance package is comprised of money paid in lieu of notice and may include other benefits, such as a company car or health coverage.

In Ontario, it is a legal requirement that companies and employers pay severance when they fire or let an employee go. This includes both small businesses and large corporations – including those that are federally regulated, or that are headquartered in places other than the province of Ontario. The minimum legislated severance required by law is one week of pay for every year that an employee has worked for the employer. However, many non-unionized employees are entitled to a greater amount than the minimum legislated severance under the ESA. This tool is designed to assist those employees who are not represented by a union and are seeking to determine their severance entitlements.

This severance pay calculator is not intended to substitute for the advice of an experienced employment lawyer. It is only intended to be a helpful tool to help individuals understand some of the rules and requirements under the Employment Standards Act (ESA). It is important to note that every situation is different, and that only an employment standards officer can determine, during an inspection or investigation, what an employee’s specific entitlements are.

The Ontario Severance Pay Calculator

The severance pay calculator is only available to non-unionized employees. Employees who are in a unionized workplace should speak to their union representative for assistance. In response to the COVID-19 pandemic, the Ontario government made a regulation that temporarily changed some of the ESA’s severance pay and termination pay rules. The temporary rules are now ended, and the original ESA rules now apply again.

The calculator is only intended to be used by non-unionized employees who are seeking to determine what their severance pay lawyer entitlement might be. Employees in a unionized workplace should speak to a labour and employment lawyer for help with their specific situation. A unionized employer must comply with the ESA and their collective agreement, which can set out different rules than those in the private sector.

It is important for all employees to understand their rights and entitlements under the ESA and their collective agreement before making a decision about a severance offer. If an employee feels that they are being mistreated or that their severance package does not meet the minimum standard required under the ESA, they should seek legal counsel immediately. A wrongful dismissal lawyer can help ensure that an employee receives the compensation to which they are entitled.