How is termination pay calculated in Canada?
Statutory termination pay is set by each province's employment standards legislation. In Ontario, it is one week of pay per year of service, up to a maximum of 8 weeks. This is only the legal minimum. Most non-unionized employees are entitled to significantly more under common-law reasonable notice, which can be several months per year of service.
What is the difference between termination pay and severance pay?
Termination pay (or pay in lieu of notice) compensates you for the notice period your employer did not give. Statutory severance pay is a separate, additional entitlement in Ontario that applies only when you have 5+ years of service and your employer has a payroll of $2.5 million or more. It equals one week per year of service, up to 26 weeks.
Is statutory termination pay all I can get?
No. Employment standards minimums are a floor, not a ceiling. Non-unionized employees dismissed without cause are usually entitled to common-law reasonable notice, which considers the Bardal factors (age, length of service, character of employment, and availability of similar work). This often produces far larger awards than the statutory minimum.
Do I get termination pay if I am fired for cause?
Generally no. If your employer proves just cause for dismissal (serious misconduct), you may lose your entitlement to notice and severance. However, the threshold for just cause is very high, and employers frequently allege cause without meeting the legal standard. An employment lawyer can assess whether alleged cause is valid.