How Much Severance Pay Are You Owed in British Columbia?
If you were fired, laid off, or let go from your job in British Columbia, you may be owed severance pay.
In BC, severance pay usually means the money your employer must provide when your job ends without cause. It can include termination pay, pay in lieu of notice, or a full common law severance package.
The most important thing to know is this: the minimum amount under BC employment standards is often much lower than what a non-unionized employee is actually owed.
Many employees in British Columbia can receive much more than eight weeks’ pay. A full severance package can be as much as 24 months’ pay, depending on your age, position, length of service, compensation, and ability to find similar work.
Before you sign a severance offer, use our BC Severance Pay Calculator or speak with a BC employment lawyer at Samfiru Tumarkin LLP.
Severance Pay in BC at a Glance
Here is the short answer.
- BC’s Employment Standards Act sets only the minimum severance owed.
- ESA severance can be as little as one week’s pay and is capped at eight weeks.
- Common law severance is often much higher and can reach up to 24 months’ pay.
- Your employer’s first offer is often not your full entitlement.
- A deadline to sign does not mean you lose your rights.
- Once you sign a release, it can be very difficult to ask for more.
What is Severance Pay in BC?
Severance pay is compensation provided to an employee when their job is terminated through no fault of their own.
In British Columbia, employers can usually end a non-unionized employee’s job without cause, but they must provide proper notice or pay instead of notice.
This can be provided as:
- Working notice: You keep working until your end date.
- Pay in lieu of notice: Your employer pays you instead of making you work through the notice period.
- A combination: You work part of the notice period and receive pay for the rest.
The phrase “severance pay” is commonly used by employees and employers, but BC’s Employment Standards Act refers to this as compensation for length of service.
Minimum Severance Pay Under BC Employment Standards
The Employment Standards Act sets the minimum amount of termination pay or notice that many employees must receive in BC.
| Length of employment | Minimum notice or pay under BC ESA |
|---|---|
| Less than 3 months | No minimum ESA termination pay |
| 3 months to 12 months | 1 week |
| 12 months to 3 years | 2 weeks |
| 3 years or more | 3 weeks, plus 1 week for each additional year |
| ESA maximum | 8 weeks |
This is only the legal minimum.
For many non-unionized employees, the real question is not “What is the ESA minimum?” It is: What is my full common law severance?
Common Law Severance in BC
Common law severance is the full severance package you may be owed under court-made law.
It is usually much more than the minimum required by the Employment Standards Act.
In many cases, common law severance can range from several months to as much as 24 months’ pay.
Your full severance package may include:
- Salary or hourly wages
- Bonus
- Commission
- Benefits
- Pension or RRSP contributions
- Car allowance
- Stock options or equity compensation
- Other regular compensation you received through work
This is why two employees with the same length of service can be owed very different amounts.
How Severance Pay is Calculated in BC
Severance pay in BC is based on several factors, often called the Bardal factors.
These include:
- Age: Older employees often receive more severance because it can be harder to find similar work.
- Length of service: Long-service employees are often owed more.
- Type of job: Senior, specialized, technical, professional, sales, and management roles can increase severance.
- Availability of similar work: If comparable jobs are limited, severance may be higher.
- Compensation: Salary, bonus, commission, benefits, and other pay should be considered.
- Employment contract: A valid termination clause may limit severance, but many clauses are not enforceable.
BC Severance Pay Examples
These examples are general only. Your actual severance depends on your specific situation.
| Employee example | ESA minimum | Possible common law severance |
|---|---|---|
| 2 years of service, age 34, junior role | 2 weeks | 2 to 4 months |
| 6 years of service, age 48, supervisor | 6 weeks | 6 to 10 months |
| 14 years of service, age 55, manager | 8 weeks | 12 to 18 months |
| 22 years of service, age 61, senior employee | 8 weeks | 18 to 24 months |
The key takeaway: eight weeks is not the maximum severance for most non-unionized employees in BC. It is only the ESA maximum.
Is Severance Pay Mandatory in BC?
Yes, severance pay is mandatory in many termination situations.
You may be owed severance if:
- You were fired without cause.
- Your job was eliminated.
- You were laid off permanently.
- Your temporary layoff became a termination.
- You were pushed out through a major change to your job.
- Your employer claimed “just cause” but did not have a strong legal reason.
- You gave notice to resign and your employer ended your job before your resignation date.
A major change to your job could be a constructive dismissal. This can include a major pay cut, demotion, relocation, significant schedule change, or removal of key duties.
When Severance Pay Might Not Be Required
Your employer may not have to provide ESA termination pay if:
- You worked for less than three months.
- You resigned voluntarily.
- You retired voluntarily.
- You were properly fired for just cause.
- Your fixed-term contract ended on its scheduled end date.
- You are covered by a collective agreement.
- You are federally regulated and covered by federal labour standards instead of BC employment standards.
However, do not assume your employer is right.
Many “for cause” terminations are not valid. Many employment contracts have problems. Many employees who are told they are not owed severance are actually owed compensation.
Termination Pay vs Severance Pay in BC
People often use these terms to mean the same thing, but there is an important difference.
| Term | What it usually means |
|---|---|
| Termination pay | Minimum pay required under BC employment standards |
| Pay in lieu of notice | Money paid instead of working through the notice period |
| Severance pay | The broader amount an employee may be owed after termination |
| Common law severance | Full severance based on court decisions, often much higher than ESA minimums |
If your employer only offered “termination pay,” you may still be owed a larger severance package.
Does an Employment Contract Affect Severance Pay?
Yes. An employment contract can affect your severance pay, but only if the contract is enforceable.
Employers often rely on termination clauses to limit severance to the minimum amount under BC employment standards. However, many termination clauses are poorly written, outdated, or legally invalid.
If your termination clause is not enforceable, you may be owed full common law severance.
Before accepting your employer’s position, have your contract reviewed by an employment lawyer.
Should I File a Complaint with the Employment Standards Branch?
Not if you are trying to recover your full severance package.
The Employment Standards Branch can help with minimum amounts under BC employment standards. It can’t award full common law severance.
For many employees, filing an Employment Standards complaint can limit the amount they recover compared to what they may receive through a proper severance negotiation or wrongful dismissal claim.
If you are unsure what to do, speak with a BC employment lawyer before filing a complaint or signing anything.
What if My Employer Gives Me a Deadline to Sign?
Do not panic.
Employers often put short deadlines on severance offers. This does not mean the offer is fair. It also does not mean you automatically lose your rights if you do not sign by that date.
A severance offer is often a starting point.
Before you sign, make sure you understand:
- How much severance you are really owed
- Whether your employment contract limits your rights
- Whether bonus, commission, benefits, pension, or car allowance should continue
- Whether salary continuance has a clawback
- Whether the release prevents you from asking for more later
How Long Do I Have to Make a Severance Claim in BC?
There are deadlines to pursue severance in British Columbia.
In many wrongful dismissal cases, employees generally have up to two years to start a legal claim. Shorter deadlines can apply for Employment Standards complaints.
Does Severance Pay Affect EI in BC?
You can apply for Employment Insurance after losing your job, even if you receive severance pay.
Severance can affect when EI benefits start, depending on how the payment is treated and allocated by Service Canada. This is separate from your severance rights under BC employment law.
Apply for EI promptly after your job ends, and get legal advice before agreeing to a severance structure that could affect your income, benefits, or taxes.
Common Severance Mistakes in BC
Avoid these mistakes after losing your job:
- Signing your severance offer too quickly
- Believing eight weeks is the most you can receive
- Accepting only the ESA minimum
- Assuming your employer’s deadline is final
- Trusting that “for cause” means no severance
- Forgetting about bonus, commission, benefits, or pension contributions
- Filing an Employment Standards complaint before getting legal advice
- Using an online estimate instead of getting your package reviewed
Get Your BC Severance Package Reviewed
Samfiru Tumarkin LLP helps non-unionized employees across British Columbia understand their severance rights and negotiate fair compensation.
Our BC employment lawyers regularly help employees who were offered far less than they are owed.
Before you sign anything, find out what your severance package is really worth.
Severance Pay BC FAQs
How much severance pay should I get in BC?
It depends on your age, length of service, job, compensation, employment contract, and the availability of similar work. The ESA minimum can be as low as one week’s pay and is capped at eight weeks. Full common law severance can be much higher, often reaching several months and sometimes up to 24 months’ pay.
What is the maximum severance pay in BC?
Under BC employment standards, the maximum is eight weeks. Under common law, severance can generally reach up to 24 months’ pay.
Is severance pay mandatory in BC?
Yes, in many cases. If you are a non-unionized employee and your employer ends your job without cause, you are usually owed notice, pay in lieu of notice, or severance.
Can my employer give me only one week of severance?
Possibly, but one week may only be the ESA minimum. Many employees are owed more under common law.
Can I negotiate severance pay in BC?
Yes. Severance offers are often negotiable. Many employees receive more after an employment lawyer reviews the offer and negotiates on their behalf.
What if I was fired for cause?
You should still get legal advice. Just cause is very difficult for employers to prove. Many employees who are told they were fired for cause are still owed severance.
Do I get severance if I quit?
Usually no, if you resign voluntarily. However, if your employer makes major changes to your job and you are forced to leave, you may have a constructive dismissal claim.
Do unionized employees get severance in BC?
Unionized employees must usually rely on their collective agreement and speak with their union. This page is for non-unionized employees in British Columbia.