Justin Trudeau to receive $104K in severance, two pensions: Key takeaways

Prime Minister Mark Carney’s predecessor, Justin Trudeau, is set to collect over $8 million in pension payouts and a $104,000 severance cheque, according to new figures released by the Canadian Taxpayers Federation (CTF).

Trudeau resigned in January 2025.

What Trudeau will receive

CTF National Director Franco Terrazzano criticized the payouts, calling them excessive compared to what average Canadians receive.

While political severance is governed by its own set of rules, many Canadians were left wondering: how does severance work for the rest of us?

Additional notes on MP severance

• MPs who serve fewer than six years don’t qualify for a pension, but they’re still entitled to a severance payment equal to half their annual salary – currently $104,900.
• Some MPs are eligible to receive both severance and a full pension. These include high-profile names like Niki Ashton, Jagmeet Singh, Mark Holland, Seamus O’Regan, and others.
• Conservative Leader Pierre Poilievre has publicly declined the severance he was eligible to receive after losing his seat, stating earlier this month that he won’t accept the $104,900 payout.

Severance for non-unionized employees in Canada

If you’re a non-unionized employee in Ontario, Alberta, or British Columbia, your rights to severance are very different from those of politicians – but they can still be significant.

Here’s what you need to know.

What’s severance pay?

Severance is compensation your employer must provide when they let you go without cause. It’s meant to help you transition while you look for a new job.

You may be owed severance if you were:

• Wrongfully dismissed
• Let go due to restructuring or downsizing
• Pushed out or constructively dismissed (forced to quit due to a toxic or changing work environment)

Severance pay by province

Ontario

In Ontario, severance pay isn’t based just on the minimum amount set by the Employment Standards Act (ESA). You could be entitled to as much as 24 months’ pay, depending on:

• Age
• Length of service
• Position
• Availability of similar jobs

➡️ Learn more about severance pay in Ontario

Alberta

Non-unionized employees in Alberta also have rights beyond the minimums. Courts consider the same factors as Ontario when determining full and fair severance. Most employees are initially offered far less than what they are truly owed.

➡️ Learn more about severance pay in Alberta

British Columbia

In B.C., your true severance package is often much higher than what your employer wants to pay you – much like Ontario and Alberta. You may be owed months of pay, even if you were with your employer for just a few years.

➡️ Learn more about severance pay in B.C.

While former politicians like Justin Trudeau may walk away with generous taxpayer-funded payouts, you don’t need to accept less than you’re entitled to.

If you’ve been let go from your job or presented with a severance offer in Ontario, Alberta, or British Columbia, speak to an employment lawyer before signing anything.

Contact Samfiru Tumarkin LLP to ensure you get the compensation the law says you deserve.