Managers in Canada can be entitled to up to 24 months’ severance pay when they’re fired or laid off. Your employer’s first offer doesn’t necessarily reflect your full entitlement, especially if you receive bonuses, commissions or other benefits.
Whether you’re a general manager, operations manager, sales manager, department head or assistant manager, your severance depends on your age, length of service, responsibilities and employment contract.
💡 Manager Severance Pay: Your severance isn’t limited to base salary. Bonuses, commissions, benefits and other regular compensation can significantly increase the amount you’re owed. Before you sign, always check first.
On This Page:
- Manager Severance Rights
- How Much Severance?
- Bonuses & Benefits
- Real Manager Severance Win
- Employment Contracts
- Frequently Asked Questions
Are Managers Entitled to Severance Pay?
Yes. Non-unionized managers are entitled to applicable termination compensation when they’re dismissed without cause.
These rights apply to managers working in retail, banking, manufacturing, hospitality, technology, transportation and other industries.
Being part of management doesn’t eliminate your employment rights. Your employer must comply with applicable termination laws and enforceable employment contract terms.
Learn more about severance pay in Canada.
How Much Severance Pay Do Managers Get?
Managers can receive up to 24 months’ pay when terminated without cause. There is no automatic one-week-per-year formula for full severance.
The amount depends on:
- Age: Your age when employment ends
- Length of service: How long you’ve worked for your employer
- Position: Your management responsibilities and seniority
- Job market: The availability of comparable management positions
- Employment contract: Whether enforceable terms limit your compensation
Managers with specialized skills, significant responsibilities or long service can be owed substantially more than the minimum offered by HR.
Use our free Severance Pay Calculator to estimate your entitlement.
Are Bonuses and Benefits Included in Manager Severance?
Severance should reflect your full compensation, not simply your base salary. Depending on your employment agreement and compensation plans, this includes:
- Salary: Regular pay during the applicable notice period
- Bonuses: Performance, annual and incentive payments
- Commissions: Sales-based earnings
- Benefits: Health, dental and insurance coverage
- Retirement contributions: Pension and employer RRSP payments
- Allowances: Car, phone and other regular employment benefits
An employer can’t automatically exclude bonuses just because you are no longer actively employed. The wording of your contract and bonus plan matters.
See our guide to bonuses and severance pay.
Real Case: Alberta General Manager Secures Full Severance
Samfiru Tumarkin LLP successfully represented a hotel general manager in Alberta who was fired after a disagreement involving a hiring decision.
Her employer initially offered only minimum termination compensation. After our firm identified an unenforceable termination clause, the employer claimed it had cause to dismiss her.
Our lawyers challenged the employer’s position and secured her full severance entitlement through negotiations, without going to trial.
Read the full Alberta manager severance case result.
This result shows why managers shouldn’t assume their employer’s initial severance offer is correct.
Can Your Employment Contract Limit Manager Severance?
Your employment contract may contain a termination clause that limits the amount of severance your employer must provide.
Not every termination clause is enforceable. If the clause is invalid, you can be entitled to additional compensation.
Your bonus plan, commission agreement and other compensation documents should also be reviewed before accepting a package.
Learn what our lawyers examine during a severance package review.
Manager Severance Pay: Frequently Asked Questions
What Is a Typical Severance Package for a Manager?
There is no standard severance package for managers. Full compensation depends on age, length of service, management responsibilities, job availability and enforceable contract terms. Severance can reach 24 months’ pay.
Can a Manager Be Fired Without Severance?
An employer must meet a high legal standard to dismiss an employee for cause without termination compensation. Being accused of poor performance or misconduct doesn’t automatically eliminate your severance rights.
Do Assistant Managers Get Severance Pay?
Yes. Non-unionized assistant managers have severance rights, just like other employees. Their actual responsibilities and employment circumstances determine how much compensation they’re owed.
Is Executive Severance Different From Manager Severance?
Senior executives often have more complex compensation arrangements involving stock options, equity and long-term incentives. Learn more about executive severance pay in Canada.
Fired From a Management Position? Find Out What You’re Owed
If you’ve lost your management job, don’t assume your employer’s severance offer reflects your full compensation. Your salary, bonuses, commissions and benefits all matter.
The employment lawyers at Samfiru Tumarkin LLP help non-unionized managers in Ontario, Alberta and British Columbia review severance offers and recover compensation they’re owed.
Before you sign, always check first.