Termination Pay in Ontario – How Much You’re Owed When Let Go
If you’ve lost your job in Ontario, you may be entitled to termination pay. This payment is required under Ontario’s Employment Standards Act (ESA) and may also be significantly higher under common law. Whether you’re offered working notice or pay in lieu of notice, understanding your rights is key to making sure you’re not shortchanged.
What is Termination Pay in Ontario?
Termination pay is compensation provided when your employer ends your job without giving enough advance notice. If they choose not to give you working notice, they must pay you instead.
This is known as “pay in lieu of notice.” It provides financial support while you search for new work.
Not to be confused with severance pay, termination pay is a basic legal entitlement for most non-unionized employees in Ontario.
Watch: Termination Pay in Ontario – Explained by Employment Lawyer
📺 Not sure how much termination pay you’re really owed? Watch as Lior Samfiru explains your rights and what most employees are never told, on the Employment Law Show
ESA Minimum Termination Pay – Ontario
The Employment Standards Act (ESA) sets the minimum requirements for termination pay in Ontario, ensuring employees receive fair notice or pay when employment ends.
Under the ESA, termination pay entitles eligible employees to one week of pay per year of service, up to a maximum of 8 weeks.
Who is Eligible for ESA Termination Pay?
Under the ESA, termination pay is calculated based on your length of service.
| Length of Service | Termination Pay Required |
|---|---|
| 3 months to less than 1 year | 1 week |
| 1 to 2 years | 2 weeks |
| 3 to 4 years | 3 weeks |
| 4 to 5 years | 4 weeks |
| 5 to 6 years | 5 weeks |
| 6 to 7 years | 6 weeks |
| 7 to 8 years | 7 weeks |
| 8+ years | 8 weeks |
These are minimums. You may be entitled to much more under common law.
Who Qualifies for Termination Pay in Ontario?
You qualify for ESA termination if:
- You worked for at least 3 continuous months
- You were let go without cause
- You weren’t given proper advance written notice
If your employer doesn’t meet ESA standards, they must pay you instead.
How Much Termination Pay Are You Owed Under Common Law?
If your employment contract doesn’t limit compensation to ESA minimums, you’re likely entitled to common law notice, which is more generous.
Factors that go into full severance include:
- Your age
- Your position and level of responsibility
- Your length of service
- How easy it is to find comparable employment
Most non-unionized employees are owed between 3 to 24 months’ pay under common law.
💡Crunch The Numbers: Use our Severance Pay Calculator to estimate what you could receive.
Working Notice vs. Termination Pay
Your employer can provide working notice instead of termination pay. But it must meet legal standards.
| Working Notice | Termination Pay |
|---|---|
| You stay employed during the notice period | You’re paid instead of working |
| Must include same pay, benefits, duties | Immediate compensation when let go |
| Often too short or incomplete | ESA or common law still apply |
Employers often provide insufficient working notice. You may still be owed more.
If you’re unsure whether your entitlements fall under termination or severance pay, visit our guide on the differences between termination and severance pay.
Common Mistake: Accepting the Minimum
Most employees in Ontario receive only the ESA minimum, but that’s usually just a fraction of what they’re really owed.
If your employer hasn’t offered what you’re truly entitled to, speak to an employment lawyer at Samfiru Tumarkin LLP before signing anything.
FAQs About Termination Pay in Ontario
Q: Is termination pay the same as severance pay?
A: No. Termination pay is a basic entitlement under the ESA. Severance pay is an additional entitlement based on years of service and company size.
Q: How is termination pay calculated in Ontario?
A: Under the ESA, it’s one week per year of service up to 8 weeks. Under common law, it could be as much as 24 months of pay.
Q: Do I get termination pay if I resign?
A: Typically no, unless your were constructively dismissed or force out unfairly.
Q: What if my employer says I was fired “for cause”?
A: Employers often misuse “just cause.” You could still be owed termination pay, along with full severance pay. Contact us to review your case.
Worried You Didn’t Get Enough Termination Pay?
At Samfiru Tumarkin LLP, we help Ontario non-unionized employees secure full compensation they’re owed when they lose their jobs.
Don’t leave money on the table. Contact us today to:
- Get a thorough review of your severance package
- Estimate your entitlements using our Ontario Severance Pay Calculator.
- Speak directly to an experienced employment lawyer
About the Author
Lior Samfiru
Lior Samfiru is a Founding Partner at Samfiru Tumarkin LLP and the Practice Leader of the firm’s Labour & Employment Law Group. Known for his advocacy and success representing both employees and employers, Lior exclusively serves clients in Ontario, where his extensive experience has made him one of Canada’s most sought-after employment lawyers.
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