Employees who have worked for a company for only a few months or a year can still be entitled to substantial severance pay. A short period of employment doesn’t automatically limit you to one or two weeks’ compensation.
If you’ve been fired or laid off, your full severance entitlement depends on more than your length of service. Some short-service employees receive several months of pay.
💡 Short-Service Severance: Even employees with less than one year of service can be owed significant compensation. Your age, position, employment contract and ability to find comparable work all matter.
On This Page:
- Who Qualifies?
- How Much Severance?
- Less Than Three Months
- Real Severance Case
- Employment Contracts
- Frequently Asked Questions
Are Short-Service Employees Entitled to Severance Pay?
Yes. Non-unionized employees can qualify for severance even after working for an employer for only a few months.
Short-service employees are commonly considered those with three years of employment or less. This includes workers who are terminated shortly after starting a new job.
Minimum termination pay under employment standards legislation is not always your full entitlement. Your employment contract and common-law rights can provide substantially more compensation.
Learn more about termination pay in Canada and how it differs from full severance.
How Much Severance Do Short-Service Employees Get?
There is no automatic one-week-per-year or one-month-per-year formula for full severance pay.
The amount you’re owed depends on:
- Age: Your age when your employment ends
- Position: Your role, responsibilities and seniority
- Length of service: How long you worked for the company
- Job market: The availability of comparable employment
- Employment contract: Whether enforceable terms limit your compensation
An employee who worked for one year can be entitled to several months of severance, depending on these factors. Severance Pay in Canada can reach as much as 24 months’ pay.
Use our free Severance Pay Calculator to estimate your entitlement.
Can You Get Severance After Less Than Three Months?
Yes. Employees can have compensation rights even when they’re fired during their first three months.
In Ontario, the Employment Standards Act doesn’t require minimum termination notice or pay for employees with less than three months of continuous service.
However, that doesn’t automatically eliminate an employee’s contractual or common-law rights. A valid probation or termination clause can affect the amount owed.
Learn more about probation periods and severance in Ontario.
Real Case: Six Months’ Severance After Six Months of Work
Samfiru Tumarkin LLP successfully represented a 43-year-old BC sales associate who was fired after just six months on the job.
His employer offered only one week’s pay. Our legal team took the matter to trial and secured:
- Six months’ compensation, including salary and lost commissions
- $28,400.88 in compensation
- $8,000 in separate legal costs
The court considered the employee’s recruitment from another job and the difficulty he faced finding comparable work.
Read the full case: Six Months’ Pay After Six Months of Employment.
Does Your Employment Contract Limit Your Severance?
Your employer may point to a termination clause that limits compensation to the minimum required by employment standards legislation.
Not every termination clause is enforceable. If the clause is invalid, you can be entitled to additional compensation.
Before signing a release or accepting a severance offer, have your severance package reviewed.
Short-Service Severance Pay: Frequently Asked Questions
Am I Owed Severance After Six Months of Work?
Yes. Employees terminated after six months can qualify for more than minimum termination pay. Your full entitlement depends on your contract, age, position and other circumstances.
Can I Get Severance After One Year?
Yes. One year of service doesn’t limit your full severance to one week’s pay. Non-unionized employees can receive several months of compensation.
Can I Be Fired Without Severance During Probation?
Being on probation doesn’t automatically eliminate your compensation rights. Your employment contract and the law that applies to your job determine your entitlement.
Do I Have to Accept My Employer’s Severance Deadline?
No. An employer’s acceptance deadline doesn’t automatically end your legal rights. Don’t sign a release without checking whether you’re owed more.
Fired After Only a Few Months? Find Out What You’re Owed
If you’ve been fired or laid off after a short period of employment, don’t assume your employer’s first severance offer is enough.
The employment lawyers at Samfiru Tumarkin LLP help non-unionized employees in Ontario, Alberta and British Columbia review severance offers and recover compensation they’re owed.
Before you sign, always check first.