Employment Law

Allstate Canada: Severance Packages

A cup of coffee next to a laptop and a notebook with a pen. Allstate Canada owes severance pay to employees who lose their job.

Allstate Insurance Company of Canada (Allstate Canada) is a wholly-owed subsidiary of The Allstate Corporation (Allstate), which is an American multinational home and auto insurer.

Founded in 1953, Allstate Canada claims that it employs a national workforce of more than 2,400 people.

Headquartered in Markham, Ontario, the insurer has offices across the province and in several others, including Alberta, Quebec, New Brunswick, and Nova Scotia.

Allstate Canada is the parent company of Pembridge Insurance Company, Pafco Insurance Company, and Ivantage Insurance Brokers Inc.

Allstate layoffs

  • November 2022: Samfiru Tumarkin LLP has been contacted by several Allstate Canada employees in Ontario who claim that the company is laying off a significant number of workers across the province. Our employment lawyers are following up with affected staff to better understand the situation.
  • September 2020:Allstate announced that it’s laying off 3,800 employees, or around eight per cent of its global workforce, in a bid to reduce costs. The cuts will affect individuals in claims, sales, and support roles. Allstate’s chief executive said roughly 1,000 of the jobs being eliminated are tied to the company’s pandemic-related refunds to policyholders.
  • March 2017: Allstate is reportedly cutting 100 jobs at Esurance in an effort to minimize operating costs. The company acquired the online insurance firm for $1 billion in 2011.

Severance pay for Allstate Canada employees

Employees at Allstate Canada can get up to 24 months of severance pay when they are fired or laid off from their job. This includes individuals working full-time, part-time, and hourly in Ontario or Alberta.

Severance is the compensation a non-unionized worker receives from their employer when they are fired without cause. If you are fired for cause, you are likely still entitled to full severance.

LEARN MORE
Severance packages in mass layoffs
Severance pay for provincially regulated employees
Severance for federally regulated employees
Rights to severance for CAA employees

Regardless of a company’s grasp on employment law, they are legally required to provide proper compensation following a termination.


WATCH: Employment lawyer Lior Samfiru explains everything you need to know about severance pay on an episode of the Employment Law Show.


All non-unionized employees at Allstate Canada are entitled to severance pay during the COVID-19 pandemic if they are terminated or let go from their job.

A company doesn’t have the option of “suspending” their legal obligations due to the coronavirus outbreak.

ADDITIONAL RESOURCES
Severance Pay in Ontario
Understanding severance in Alberta

The employment lawyers at Samfiru Tumarkin LLP have represented numerous employees over the years in severance package negotiations. We have successfully secured much larger amounts for individuals employed across a variety of positions, from entry level jobs to executives.

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How to properly calculate severance pay

There is a general belief that severance is one week’s pay, two weeks’ pay, or a week for every year of service an employee has with a company.

The reality is that severance for non-unionized employees in Canada is calculated using a variety of factors, including age, length of service, position, bonuses, benefits, and your ability to find new work.

ADDITIONAL RESOURCES
• Severance Pay in Ontario
• Alberta severance packages
• Understanding severance in B.C.
Layoffs in Canada

Before accepting a severance offer, double-check the amount using our firm’s free Severance Pay Calculator. It has helped millions of Canadians determine their entitlements.

If your employer’s offer falls short of what our Severance Pay Calculator says you are owed, it’s very likely that you have been wrongfully dismissed and should contact an experienced employment lawyer at Samfiru Tumarkin LLP.

Don’t sign on the dotted line!

Do not accept any severance offer, termination papers, or exit agreement that you receive. Once you sign back these documents, you eliminate your ability to negotiate additional severance pay.

Non-unionized employees in Canada have up to two years from the date of their dismissal to pursue proper severance pay. An employer’s deadline to sign back a severance offer is not legally enforceable or binding.

Generally speaking, if an employee does not receive the proper amount of severance pay when they lose their job, they may be considered to have been wrongfully dismissed. An employment lawyer at Samfiru Tumarkin LLP can analyze your situation and explain how much compensation you may be owed.

Talk to an employment lawyer

The experienced employment law team at Samfiru Tumarkin LLP has helped tens of thousands of non-unionized individuals across the country. In addition to severance package negotiations, our team has experience securing solutions for the following employment matters:



Our lawyers in Ontario, Alberta, and B.C. stand ready to help you solve your workplace issues.

If you are a non-unionized employee who needs help with an employment issue, contact us or call 1-855-821-5900 to get the advice you need, and the compensation you deserve.

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Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is not specific to any one company and should not be read as suggesting any improper conduct on the part of any specific employer, or a relationship between Samfiru Tumarkin LLP and a specific employer.

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Consult with Samfiru Tumarkin LLP. We are one of Canada's most experienced and trusted employment, labour and disability law firms. Take advantage of our years of experience and success in the courtroom and at the negotiating table.

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