Being paid by the hour does not take away your severance rights. Full-time and part-time hourly employees in Ontario can be owed compensation when their employment ends.
For hourly workers, two questions matter: how much compensation are you entitled to, and has your employer used the right earnings to calculate it? A package based on too few hours can leave you short.
On This Page:
- 1. Part-Time Employees
- 2. Calculating Weekly Pay
- 3. Variable Hours
- 4. Reduced Or Cancelled Shifts
- 5. Checking Your Offer
Do Part-Time Hourly Employees Get Severance?
Yes, part-time employees can qualify. Working fewer hours does not automatically disqualify you from termination pay, statutory severance or common-law notice. Each has its own requirements.
Your normal earnings affect the dollar amount. However, your employer should not automatically cut your years of service in half because you worked part-time. Five calendar years of continuous part-time employment is not simply two and a half years of service.
If you belong to a union, contact your union about your rights and the grievance process. Special rules can also apply to certain industries and employment arrangements.
How Is Weekly Pay Calculated For Hourly Employees?
If you have a fixed hourly rate and a regular schedule, the starting calculation for ordinary weekly wages is:
Hourly rate × regular weekly hours = regular weekly wages.
| Example Schedule | Weekly Wages Before Tax |
|---|---|
| $25 per hour × 40 hours | $1,000 |
| $25 per hour × 20 hours | $500 |
These examples establish a weekly wage, not the number of weeks or months you are owed. Benefits, premiums and other compensation may need separate assessment. Overtime is generally excluded from ESA regular wages, while a common-law assessment may consider a broader compensation history.
What If Your Hours Change Every Week?
Your employer should not simply pick your lowest-paid week. If you have no regular work week, Ontario’s ESA generally uses an average of regular wages over the weeks you worked within the relevant 12-week period.
For termination pay without working notice, that period generally falls immediately before termination. Different reference dates can apply when notice is given or statutory severance is calculated. The applicable rules matter, especially if you had weeks without work.
Example: Ten Weeks Worked In A Twelve-Week Period
Assume you earned $8,000 in regular wages across ten weeks worked during the relevant twelve weeks, and the standard averaging rule applies:
$8,000 ÷ 10 weeks worked = $800 per week.
Automatically dividing by twelve would produce $666.67 and understate that weekly figure.
For a common-law claim, the assessment may also consider longer-term earnings and what you would likely have earned during the notice period. Keep your schedules and pay records, particularly if your hours recently dropped.
What If Your Employer Cuts Or Stops Your Shifts?
A major, unwanted reduction in hours or pay may amount to constructive dismissal. Whether it does depends on your contract, established schedule and the size and circumstances of the change.
If your employer stops scheduling you and calls it a temporary layoff, review your Ontario temporary layoff rights. Get advice promptly before resigning, refusing work or agreeing to reduced hours.
What Should Hourly Workers Check Before Signing?
- Your rate: Does the calculation use your correct hourly wage?
- Your hours: Does it reflect your regular schedule or the correct averaging period?
- Your service: Are your start date and employment history accurate?
- Your full compensation: How are benefits, premiums, commissions or bonuses treated?
- Your outstanding pay: Are unpaid wages and earned vacation pay clearly identified separately from the termination package?
Bring your employment contract, severance offer, recent pay stubs, schedules and T4s to a review. If your hours vary, include records showing both recent earnings and your longer-term work pattern.
You can also use our free Severance Pay Calculator for an initial estimate. A lawyer can check whether your earnings and contract support that estimate.
Before You Sign, Always Check First.
Our Ontario employment lawyers help non-unionized hourly and part-time employees check their offers and pursue the compensation they are owed. Being paid hourly is no reason to accept less.