Severance Pay and Retirement in Ontario: What Older Employees Need to Know

Many employees in Ontario believe that once they reach 60 or 65, they’re no longer entitled to severance if their job ends. That’s a myth. Age actually strengthens your severance claim, not weakens it.

If you’re approaching retirement age, or your employer ends your employment after decades of service, you need to understand how severance and retirement rules work in Ontario.

Do You Get Severance Pay When You Retire in Ontario?

The answer depends on who makes the decision:

• Voluntary retirement: If you choose to retire, you are not entitled to severance pay. Retirement is considered your decision to end the employment relationship.
• Employer termination: If your employer ends your job, even if they say it’s “time to retire,” you are legally entitled to severance pay — regardless of your age.

Severance Pay Over Age 60

Being 60 or older often means a higher severance entitlement. Ontario law considers several factors when deciding how much severance is owed, and age is one of the most important.

Why? Because:

• Employees in their 60s typically face more difficulty finding new work
• The job market is often less welcoming to older workers
• Long service combined with older age increases entitlement

Severance Pay After Age 65

There’s no legal cut-off for severance pay at age 65. Ontario abolished mandatory retirement years ago, meaning employees can keep working beyond 65.

• If you’re terminated at 67, 70, or even 75, you still have the same right to severance as anyone else.
• Courts often emphasize that older employees face an even tougher time finding new work, which can increase the length of severance owed.

Bottom line: Age does not cancel severance rights. In fact, it usually increases them.

Retirement Notice Period in Ontario

There’s an important difference between notice for retirement and notice for termination:

• Employees retiring voluntarily: You should give your employer “reasonable notice of resignation” — often two to four weeks — so they can plan your replacement. Some employment contracts may require more.
• Employers terminating older employees: They must provide full severance pay — which can be months, or even years, of compensation depending on your age, role, and length of service.

Key Takeaways for Older Employees

• Yes, you get severance after 60 and 65. There’s no age limit
• Retirement is not termination. If you retire voluntarily, no severance is owed. If you’re terminated, full severance applies
• Age increases severance. The older you are, the stronger your entitlement
• Retirement notice is short; termination severance is much greater

FAQs About Severance and Retirement in Ontario

Speak to an Employment Lawyer

If you’re over 60 and your employer ends your job, don’t assume you’re not owed anything. You could be entitled to significant severance — even after age 65.

At Samfiru Tumarkin LLP, our employment lawyers in Ontario have helped tens of thousands of employees enforce their workplace rights.

At our firm, we have:

• ⚖️ Settled over 99% of cases quickly through negotiation or mediation
• 💰 Secured millions in compensation
• 📱 Free Termination Consultations — in many, but not all, cases
• ⭐ Earned 3,215 5-star Google reviews (4.7 average)
• 🏆 Recognized as one of Canada’s Best Law Firms (Globe and Mail)

Call us at 1-855-821-5900 or request a consultation online.