When your job ends in Ontario, the Employment Standards Act, 2000 (ESA) sets the least your employer must give you: written notice or termination pay, and for some long-serving employees, severance pay. Enter your dates and pay below to see both minimums and the total.
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Before you rely on this
- These are the minimums in Ontario’s Employment Standards Act. Your employment contract, or the “reasonable notice” a court can award under the common law, can give you much more. You can’t both sue for wrongful dismissal and file an ESA claim for the same job loss, so it can be worth getting legal advice before you choose.
- Some jobs aren’t covered. If you work for a federally regulated employer, such as a bank, an airline, a telecom company or Canada Post, the Canada Labour Code applies instead of the ESA. See termination rules on canada.ca and the list of federally regulated industries.
- Exemptions. Construction employees and people dismissed for wilful misconduct that wasn’t trivial get no ESA notice, termination pay or severance pay. Someone hired for a fixed term or task that simply ends usually gets no notice. Questions: Employment Standards Information Centre, 1-800-531-5551.
What to do next
- Check if you qualify for EI and apply right away. Applying more than 4 weeks after your last day of work can cost you benefits. You still apply if you get termination or severance pay: you report it on the application.
- How EI reporting works: your bi-weekly reports keep the payments coming.
- EI payment dates.
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Not a government site. This is an estimate, not a decision. Always confirm with the Ontario Ministry of Labour, Immigration, Training and Skills Development.
Termination pay and severance pay are two different things
Many people use “severance” for any money paid when a job ends. Under the ESA there are two separate entitlements, and you can get one, both or neither.
- Termination pay is pay instead of notice. If your employer doesn’t give you enough written notice, it must pay your regular wages for the weeks of notice you didn’t get. Vacation pay is added on top.
- Severance pay makes up for losses like seniority when a long-term job ends. It only applies after 5 years, and only with larger employers or when many jobs are lost at once. No vacation pay is added to it.
How much notice you get
Once you have been employed for 3 months in a row, your employer must give you written notice, termination pay, or a mix of the two that adds up to the full notice period:
| Length of employment | Minimum notice |
|---|---|
| Less than 3 months | None |
| 3 months to less than 1 year | 1 week |
| 1 year to less than 3 years | 2 weeks |
| 3 to less than 4 years | 3 weeks |
| 4 to less than 5 years | 4 weeks |
| 5 to less than 6 years | 5 weeks |
| 6 to less than 7 years | 6 weeks |
| 7 to less than 8 years | 7 weeks |
| 8 years or more | 8 weeks |
Termination pay is your regular wages for a regular work week times the weeks of notice you didn’t get. Regular wages don’t include overtime. If your hours or pay change from week to week, the ESA uses your average weekly pay over the last 12 weeks you worked. Vacation pay of at least 4% (6% once you have 5 years of employment) is owed on termination pay.
Who gets severance pay and how much
You qualify for ESA severance pay when your employment is severed, you have worked for the employer for 5 or more years, and either:
- the employer has a global payroll of at least $2.5 million, or
- the employer severed the employment of 50 or more employees within 6 months because all or part of the business closed permanently.
The amount is your regular weekly wages times your completed years of employment, plus completed months in the last partial year divided by 12. The most the ESA requires is 26 weeks. The 5 years count all your time with the employer, whether continuous or not. Weeks of notice that are paid instead of worked still count as employment when working out severance.
A worked example
Say you started on March 2, 2020, and your employer ends your job with no notice on May 4, 2026. You earn $1,200.00 a week and your employer’s global payroll is over $2.5 million.
- Length of employment: 6 years and 2 months, so you are owed 6 weeks of notice.
- Termination pay: you got no notice, so 6 × $1,200.00 = $7,200.00. With 5 or more years, vacation pay is 6%: $432.00. Total: $7,632.00.
- Severance pay: the 6 weeks of termination pay count as employment, which brings you to 6 years and 3 completed months. That is 6 + 3 ÷ 12 = 6.25 weeks. 6.25 × $1,200.00 = $7,500.00.
- Total ESA minimum: $7,632.00 + $7,500.00 = $15,132.00, before tax.
Both amounts must be paid within 7 days after your employment ends or on your next regular pay day, whichever is later. Severance pay can be paid in instalments over up to 3 years only if you agree in writing or the Director of Employment Standards approves.
Who this covers
The ESA covers most employees who work in Ontario. It does not cover federally regulated workplaces, such as banks, airlines, telecommunications companies and Canada Post. Those employees fall under the Canada Labour Code, which has its own notice and severance rules. See termination, layoff or dismissal on canada.ca and the list of federally regulated industries.
Some Ontario employees get no ESA notice or severance pay, including construction employees and people dismissed for wilful misconduct that is not trivial. Other exemptions cover employees hired for a fixed term or task, and people who refuse reasonable alternative work. If 50 or more employees are let go at one establishment within 4 weeks, special mass termination rules can require 8 to 16 weeks of notice instead of the table above.
These are minimums, not what you’re “worth”
The ESA sets the floor. Your employment contract, or the “reasonable notice” a court can award under the common law, can be much higher. You can’t sue for wrongful dismissal and also file an ESA claim for the same job loss: you have to pick one. If a lot of money is at stake, it is worth getting legal advice before you sign a release or file a claim.
Common mistakes
- Mixing up the two. Termination pay and severance pay are separate. Getting one doesn’t cancel the other.
- Forgetting vacation pay on termination pay (4% or 6%).
- Counting overtime in your weekly pay. The ESA uses regular wages for a regular work week.
- Leaving out the notice weeks when you check whether you reached 5 years for severance.
- Waiting to apply for EI. Apply right away. Applying more than 4 weeks after your last day of work can cost you benefits.
Common questions
Is working notice the same as termination pay?
They meet the same requirement. Your employer can give you written notice and let you keep working, pay you instead, or combine the two. During the notice period it can’t cut your wage rate or change your terms, and it must keep up its contributions to your benefit plans.
Do I lose severance pay if I resign after getting notice?
Not always. If you got written notice of termination, you keep your right to severance pay if you give your employer 2 weeks’ written notice of your resignation and it takes effect during the statutory notice period.
What does a $2.5 million global payroll mean?
It is about your employer’s payroll, not your own pay. If you aren’t sure, choose “Not sure” in the calculator to see the amount you would get if your employer qualifies, then ask your employer or the Employment Standards Information Centre at 1-800-531-5551.
I work for a bank in Toronto. Does this apply to me?
No. Banks are federally regulated, so the Canada Labour Code applies, not the ESA, even though you work in Ontario. Its notice and severance rules are different. Check canada.ca.
Can I get EI if I received severance or termination pay?
You should still apply as soon as you stop working, and report the severance pay, pay instead of notice and vacation pay you received on your application. Service Canada decides how that money affects your claim. See who qualifies for EI, how EI reporting works and the EI payment dates.
