Understanding Employment Insurance (EI) and severance pay

Employment Insurance (EI) is a federal program that provides financial support to employees who have been fired or laid off. It is a temporary income while unemployed workers look for new work. To access EI benefits, individuals must have paid into the program in the past year and meet specific requirements.

Severance pay is compensation provided to an employee when they lose their job. It is based on various factors such as length of service, position, and salary, and can be as much as 24 months’ pay.

Learn more about EI and severance pay in your province:


Key points on EI benefits and severance pay

  • Application for EI benefits: You must apply for EI benefits through Service Canada within 30 days of your employment termination.
  • Employer advice on EI: Be cautious of employer advice regarding EI and severance pay, especially if you are fired “for cause.” Many employers incorrectly fire people in this manner, impacting their ability to collect a full severance package and EI benefits. Always check with our team before accepting their decision.
  • Wrongful and constructive dismissal: Understand how to navigate EI benefits during a wrongful dismissal or constructive dismissal claim.
  • Don’t take chances: Seek legal assistance to ensure you receive the best severance package possible while applying for EI benefits.

Need help with severance as you navigate EI?

Our employment lawyers have the expertise to help you understand the complexities of EI and severance pay. Whether you have been let go from your job or require a severance package review, contact us online or call 1-855-821-5900 to get the advice you need, and the compensation you deserve.

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