You generally do not get severance pay if you voluntarily quit your job in Canada. However, you may still have a right to compensation if your employer effectively forced you out, seriously breached your employment terms, or agreed to pay you for leaving.
Before handing in a resignation, find out whether you would be walking away from money you may be owed. The employment lawyers at Samfiru Tumarkin LLP help non-unionized employees in Ontario, Alberta and British Columbia understand their options before resigning or accepting an exit offer.
If you have already left, get advice before assuming you have no claim.
On This Page:
- 1. Quitting & Severance
- 2. When You May Be Owed Compensation
- 3. Before You Resign
- 4. Already Resigned?
- 5. Final Pay & EI
- 6. Rules by Province
- 7. Frequently Asked Questions
Quitting and Severance: Common Situations
The reason your employment ended matters. Leaving for a new job is different from being pressured to resign or leaving in response to a serious breach by your employer.
In this guide, “severance” refers broadly to termination compensation. It is separate from the wages and vacation pay you have already earned.
| Your situation | Could you receive compensation? |
|---|---|
| You voluntarily quit for a new job or personal reasons. | Usually no severance, unless an agreement provides otherwise. |
| You leave because your employer seriously breaches your employment terms. | Possibly. Your departure may be a constructive dismissal rather than an ordinary resignation. |
| Your employer tells you to resign or be fired. | Possibly. The departure may be treated as an employer-initiated termination. |
| You accept a voluntary departure package or negotiated exit. | Payment depends on the agreement. Review the complete terms before accepting. |
| You give resignation notice, but your employer ends your employment sooner. | You may be owed pay connected to the shortened notice period. This does not automatically create a right to a larger severance package. |
When Can You Get Severance After Quitting?
Your employer has constructively dismissed you
Sometimes an employer effectively ends the employment relationship without saying, “You are fired.” A substantial pay cut, major demotion or serious workplace mistreatment may amount to constructive dismissal.
If you leave in response to conduct that legally qualifies as constructive dismissal, you may be able to pursue severance even though you were the person who stopped working.
Do not resign simply because a change feels unfair. The seriousness of the change, your employment contract and how you respond all matter. Get advice promptly about whether to object, continue working or take another step.
Your resignation was not genuinely voluntary
An employer may tell you that resigning will “look better” than being dismissed. You do not have to accept that suggestion or sign a resignation letter on the spot.
If your employer has already decided to end your employment, calling the departure a resignation does not necessarily remove your right to compensation. What happened before you signed can be important.
Read our guide to forced resignation in Canada for what to do when your employer is pressuring you to leave.
Your contract or exit agreement provides for payment
An employment contract, voluntary departure program or negotiated agreement may provide compensation when you leave. That is different from automatically being owed severance because you want to quit.
Review the payment amount, benefits, departure date and any release of legal claims before accepting. Do not resign first and rely on an informal promise that the details will be worked out later.
What Should You Do Before Quitting?
Before sending a resignation email or agreeing to an exit, take these steps:
- Get your situation assessed. Have an employment lawyer review why you want to leave, your contract and any proposed changes or departure terms.
- Keep relevant records. Preserve your contract, pay information, messages about job changes and complaint correspondence that you are legally entitled to retain. Do not take unrelated confidential company information.
- Ask for the employer’s position in writing. If you are being asked to resign, clarify what happens if you decline and whether compensation is being offered.
- Check your notice obligations. There is no single resignation-notice rule that applies to every Canadian employee. Your employment terms and the applicable law need to be considered.
If your health is making it difficult to work, speak with your healthcare provider and ask about medical leave and available benefits before deciding to resign. Leaving your job permanently may not be your only option.
A review before you resign can help you understand your options and avoid mistakes that are harder to fix afterward.
Already Resigned? You May Still Have Options
Having a resignation letter on file does not automatically answer whether you are owed severance. The circumstances leading to your departure still need to be considered.
An employment lawyer can review what your employer said or did, whether your job changed, why you left and what you communicated at the time. Your resignation letter, messages and any agreement you signed will help explain the full picture.
If you signed a release, provide that too. It may limit your ability to bring a claim, so do not assume it can simply be ignored.
Get advice promptly. The timing of your response and the deadline for pursuing a claim can matter. Tell us what happened before deciding there is nothing you can do.
What About Your Final Pay and Employment Insurance?
Quitting does not cancel wages you have earned
Even if you are not owed severance, your employer must still pay outstanding wages and earned vacation pay. You may also be owed other earned amounts, such as overtime or commissions, depending on the applicable rules and your compensation arrangement.
The payment deadline depends on the employment law that applies to you. A final paycheque is not necessarily a severance package.
EI eligibility is a separate question
If you voluntarily leave your job without “just cause” under Employment Insurance rules, you generally will not qualify for regular EI benefits based on that employment.
For EI purposes, just cause generally means you had no reasonable alternative to leaving, considering all the circumstances. Having a good personal reason to quit is not necessarily enough.
Service Canada assesses your eligibility. Qualifying for EI does not automatically mean your employer owes you severance, and an employer cannot guarantee EI approval as part of an exit agreement. See the Government of Canada’s guidance on quitting and EI.
Severance After Quitting: Find the Rules That Apply to You
This is a general Canadian overview. Your specific rights depend on your province, whether your job is federally regulated and the circumstances of your departure.
For more detailed guidance, see:
- Ontario: Do you get severance if you quit in Ontario?
- Alberta: Do you get severance if you quit in Alberta?
- British Columbia: Severance pay in BC.
Federally regulated employees follow a separate set of minimum employment standards. Our Canadian severance guide explains federal coverage and the differences from provincial rules.
Frequently Asked Questions About Severance When You Quit
Do you get severance if you quit after 10 or 20 years?
Not simply because you worked there for a long time. Length of service does not turn an ordinary voluntary resignation into a dismissal.
If your departure does qualify as a dismissal, your employment contract, age, role, length of service and availability of similar work can affect your compensation. Our Severance Pay Calculator can provide a starting estimate where termination entitlements apply, but it does not determine whether your resignation gives you a claim.
What if you give two weeks’ notice and your employer tells you to leave immediately?
You may be owed pay for some or all of the remaining notice period. The amount depends on the applicable employment law, your employment terms and the notice you gave.
Being told not to work your notice does not automatically turn a voluntary resignation into a right to months of severance. Ask your employer to confirm your employment end date and how you will be paid.
Can you keep severance if you resign after receiving termination notice?
Sometimes, but check before leaving early. Specific rules may preserve certain entitlements when an employer has already given you notice that your job will end.
For example, an otherwise eligible Ontario employee can keep their right to statutory severance pay by giving at least two weeks’ written resignation notice, with the resignation taking effect during the statutory termination-notice period. This is a specific rule, not a guarantee that every part of an exit package remains payable.
Before You Quit, Find Out Where You Stand
You should not have to guess whether resigning will cost you your severance.
Samfiru Tumarkin LLP helps non-unionized employees in Ontario, Alberta and British Columbia assess proposed resignations, employer pressure, major job changes and exit offers. We can review what happened, explain whether you may be owed compensation and help you pursue your entitlements.
Whether you are about to resign or have already left, start by telling us what happened.
Unionized? Contact your union about representation and grievance options. Our employment law team does not handle unionized workplace disputes.
➡️ Get advice before you resign or sign
Or call 1-855-821-5900.