Severance Pay Ontario
What you are legally owed when you lose your job in Ontario — the two separate payments the Employment Standards Act guarantees, who qualifies, and why a lawyer may get you more.
Last updated: July 2026 · Ontario Ministry of Labour · Employment Standards Act, 2000
What you are owed when you are let go in Ontario
When your job ends in Ontario, the Employment Standards Act (ESA) sets the legal minimum your employer must pay. Two different payments can apply, and most people confuse them. The first is termination pay — one week of pay for each year of service, up to a maximum of 8 weeks, owed to almost anyone employed at least three months. The second is severance pay — a separate, larger entitlement of one week per year up to 26 weeks, but only for long-service employees at larger employers. If you qualify for both, you receive both, one stacked on top of the other.
This section deals with the statutory minimum under Ontario’s ESA — the floor an employer cannot go below. It is deliberately the number we can verify against the law, to the dollar. What it does not capture is common-law reasonable notice, which for many employees — especially older, long-service or senior workers — is considerably more than the ESA minimum, sometimes several months more. Common law is decided case by case and is a conversation for an employment lawyer. Treat the figures here as the guaranteed floor, not the ceiling.
Termination Pay vs Severance Pay
| Termination pay | Severance pay | |
|---|---|---|
| Who qualifies | Employed 3+ months | Employed 5+ years |
| Employer condition | Any employer | Payroll $2.5M+ or 50+ let go |
| Amount | 1 week per year | 1 week per year |
| Maximum | 8 weeks | 26 weeks |
| Counts partial years? | No (whole-year bands) | Yes (months ÷ 12) |
Termination pay is really “pay in lieu of notice” — your employer can give you working notice instead, or a mix of notice and pay. Severance pay is always a payment and is in addition to termination pay. An employee let go after long service at a large employer can receive up to 8 weeks of termination pay plus up to 26 weeks of severance pay under the ESA.
What You’ll Find in This Section
- Severance Pay Calculator: enter your pay and years of service to see your termination pay, your severance pay, and the total ESA minimum you are owed
- Notice Periods Table: the exact weeks of termination notice or pay for every length of service, straight from the ESA
- How to File a Claim: the free Ministry of Labour claim, the two-year deadline, and when to see a lawyer instead
- Complete guide: how the two payments work together, constructive dismissal, and why common-law notice is often more
Also in Canada:
- EI Benefits Calculator — the Employment Insurance you can claim after a layoff
- How to Apply for EI — apply within four weeks of your last day
- Net Pay Calculator — your salary after tax, CPP and EI
📋 Rules verified — Official sources: Ontario — ESA: Severance pay · Ontario — ESA: Termination of employment
⚠️ This is general information, not financial, tax or legal advice. KnowMyGovt is an independent service with no affiliation with or endorsement by the Ontario Ministry of Labour or the Government of Ontario, and is not responsible for decisions you make based on it. For advice on your specific situation, consult an employment lawyer.
