Canadian North Severance Pay: Your Rights Explained

Canadian North is a Canadian airline headquartered in Kanata, Ontario, with operational bases in Yellowknife, Northwest Territories, and Edmonton, Alberta.

Founded in its current form in 2019 following the merger of Canadian North and First Air, the airline provides passenger and cargo services to communities across the Canadian Arctic, including Nunavut, the Northwest Territories, and Nunavik, as well as routes connecting to southern Canada. Canadian North is wholly owned by the Makivvik Corporation and the Inuvialuit Development Corporation.

The airline employs more than 1,000 professionals in roles such as pilots, flight attendants, ground crew, customer service agents, maintenance technicians, and administrative staff. In February 2025, it was announced that Canadian North is being bought by Exchange Income Corporation (EIC) for $205 million.

Severance pay for Canadian North employees

In Canada, non-unionized employees at Canadian North are entitled to up to 24 months of severance pay when laid off or terminated without cause—whether full-time, part-time, or hourly.

ℹ️ Want a quick overview on severance pay? Watch the video below or check out the full episode in our TV section.

Key Facts

• Severance pay is calculated using a variety of factors, such as age, position, length of service, and ability to find similar work. Learn more about severance pay in Ontario, Alberta, and British Columbia.
• Severance packages should include salary, bonuses, commissions, and other compensation earned during employment.
• Employees generally have up to two years from the date of their termination to pursue full severance pay.

Our firm has assisted tens of thousands of individuals from entry-level roles to executive positions in obtaining the compensation that they deserve.

LEARN MORE
• Severance pay for provincially regulated employees
• Are severance packages different during mass layoffs?
• Severance entitlements in a recession

5 steps to take if you’re laid off by Canadian North

1️⃣ Don’t sign anything immediately: Take your time to review all termination documents carefully. Speak with a lawyer before signing anything to ensure you’re fully informed and protected.

2️⃣ Document everything: Save copies of termination letters, severance offers, and correspondence with your employer for future reference.

3️⃣ Use our Severance Pay Calculator: Estimate what you’re owed with our Severance Pay Calculator. This quick step helps you understand your entitlements and plan your next move.

4️⃣ Get legal advice: Contact an employment lawyer at Samfiru Tumarkin LLP to ensure your severance package reflects your full rights.

5️⃣ Start exploring new opportunities: Update your resume and begin searching for new roles. Proactively seeking work not only boosts your career, but also demonstrates your effort to find a new job, which is crucial in severance claims.

Severance Pay FAQs

Do employment contracts affect severance?

Yes, an employment contract can affect your severance entitlements if it includes enforceable termination clauses. However, many of these clauses may be invalid for several reasons.

Are temporary layoffs legal?

Temporary layoffs for non-unionized employees are generally not permitted unless specifically allowed by an employment contract. Otherwise, a layoff may be treated as a termination through a constructive dismissal claim.

Am I entitled to severance as a contractor?

If your work closely resembles that of an employee—such as reporting to a manager, using company equipment, or working regular hours—you may qualify for severance even if classified as a contractor.

Should I negotiate my severance package?

To ensure that you receive the amount of compensation that you’re entitled to, let our lawyers in Ontario, Alberta, and B.C. negotiate on your behalf.

Why Samfiru Tumarkin LLP?

Unlike employment law firms that rely heavily on courtroom victories, our proven strategy focuses on maximizing severance packages early in the claim process—helping clients avoid the time, cost, and stress of litigation.

With extensive courtroom experience to fall back when necessary, we excel at securing generous outcomes quickly and efficiently for our clients.

In addition to severance package negotiations, our lawyers in Ontario, Alberta, and B.C. can help with a variety of employment matters, including:

If you’re a non-unionized employee who needs help with a workplace issue, contact us or call 1-855-821-5900.

Get the advice you need and the compensation you deserve.

Additional resources

• Do I have to look for a new job after getting fired?
• Can I get my job back if I’m fired?
• Facts about the termination process in Canada
• I already accepted a severance package. What should I do?

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.