What You Need to Know About Severance Pay in Canada

If you are a non-unionized employee in Canada who has been let go or terminated without cause, you are likely entitled to severance pay. This applies whether you lost your job due to restructuring, cost-cutting, downsizing, or nearly any other reason.

Severance pay in Canada is designed to provide financial support while you search for new employment. What many people don’t realize is that your severance entitlements under common law in Canada are often far greater than what is outlined in provincial or federal legislation. In some cases, it can be worth as much as 24 months’ pay.

At Samfiru Tumarkin LLP, Canada’s most positively reviewed employment law firm, we’ve helped over 50,000 individuals secure proper severance pay. Our experienced team understands how to calculate what you’re truly owed and how to push back when employers fall short.

ℹ️ Here’s what you need to know

  • Most severance offers are too low: Employers often offer the bare minimum. That doesn’t mean it’s what the law requires.
  • Your rights depend on more than just time worked: Factors like age, job title, and re-employment prospects also affect your entitlement.
  • Deadlines are pressure tactics: You do not lose your severance rights just because your employer gave you 48 hours to decide.
  • You don’t have to navigate this alone: Our lawyers can review your situation and fight for what you’re owed.

Use our Severance Pay Calculator for a quick and anonymous estimate of your potential entitlements. Then speak with our team for a full assessment of your situation.

🕒 Don’t Sign Just Because There’s a Deadline: You do not lose your legal rights just because an employer tells you to sign in 24, 48, or 72 hours. Take your time – and get proper legal advice before accepting anything. Read our blog about why you shouldn’t sign a severance offer.


🎥 WATCH: Employment lawyer Lior Samfiru breaks down severance pay rights and what most people get wrong when they lose their job.


What to Do if You Receive a Severance Package

Being let go from your job is difficult enough – but figuring out if your severance package is fair can be even more confusing.

Most employees don’t realize that the severance offer they receive from their employer is often far below what they are legally entitled to. Employers may include complex legal language, impose short deadlines, or suggest that the offer is non-negotiable – all of which are designed to pressure you into accepting less than you deserve.

That’s where we come in.

At Samfiru Tumarkin LLP, our severance pay lawyers will carefully review your package and explain your rights clearly. We assess the full picture – including your position, age, length of service, total compensation, and your ability to find new work – to determine what the law actually says you should receive.

✅ Key Things to Remember:

  • You don’t have to sign anything right away
  • You are not obligated to accept a lowball offer
  • Severance packages are negotiable – especially when you get legal advice

Before making a decision, use our Severance Pay Calculator for a basic estimate, and then contact our team to find out what your full entitlements look like.

💡 The first offer is rarely the best one – and we’re here to make sure you don’t leave money on the table.


When Severance Pay is Considered Wrongful Dismissal

Many non-unionized employees believe that if they were let go “without cause,” they must simply accept whatever severance their employer offers. But in Canadian employment law, wrongful dismissal isn’t about how you were let go – it’s about what you were offered when it happened.

If you didn’t receive the full severance pay you’re legally entitled to under common law, your termination may qualify as wrongful dismissal. This is true even if your employer followed minimum standards set by your province’s employment legislation.

🛑 Signs Your Dismissal May Be Wrongful:

  • You were given a severance offer that feels too low
  • You were told your compensation is “final” or “non-negotiable”
  • You were pressured to sign within a short timeframe
  • Your employer claimed you were terminated “for cause” without serious misconduct

Wrongful dismissal is one of the most common issues we see – and it’s often resolved without ever going to court. If your employer hasn’t met their legal obligations, we’ll help you challenge the offer and secure what you’re actually owed.

If you didn’t receive the full severance pay you’re legally entitled to under the law.


How Our Severance Lawyers Help You Get What You’re Owed

Once we’ve reviewed your severance offer and identified any gaps, our team gets to work. You don’t have to navigate this process on your own – and you don’t need to start a court case to get results.

Here’s how we help:

1️⃣ We Compare the Offer to Your Legal Entitlement

We calculate what you’re actually owed – and how far off your employer’s offer may be.

✅ Most clients are owed significantly more than what’s first offered, sometimes tens of thousands of dollars more.

2️⃣ We Explain Your Options Clearly

You’ll know exactly where you stand, whether it makes sense to accept, negotiate, or pursue legal action. We answer all your questions – clearly and without pressure.

📌 You’re never locked in. We give you the facts so you can make an informed choice.

3️⃣ We Push for a Better Package – Fast

We negotiate directly with your employer, often reaching a better deal within weeks – not months. In most cases, we resolve matters without going to court.

⚖️ You don’t pay unless we succeed. For most severance matters, our lawyers work on a contingency basis.

Whether your termination was recent or you’re still weighing an offer, time matters. You have two years from your date of termination to claim full severance pay – and waiting too long could cost you. Contact us now to protect your rights and get the pay you deserve.


Find Province-Specific Severance Pay Info

While severance pay is guided by common law in Canada, your rights can also depend on the province you live in. We’ve created dedicated pages that explain the unique rules and severance entitlements in your region.

Severance
pay
ONTARIO
Severance
pay
Alberta
Severance
Pay
BC

✅ Tip: If you’re a federally regulated employee (banking, telecom, airlines) your rights are determined by federal legislation – and we can help with that, too. Learn about severance pay for federally regulated employees.


Questions About Severance Pay in Canada

These answers apply to non-unionized employees across Canada. For province-specific advice, use the selector above.

What is severance pay in Canada?

Severance pay is compensation your employer must provide when your job ends – especially if you’re let go without cause. It’s meant to bridge the gap while you search for new work. In Canada, severance is governed by common law and can reach up to 24 months’ pay depending on your situation.

How do I know if my severance offer is fair?

Your employer’s offer is likely based on minimum standards – not what you’re actually owed under the law. A fair severance package considers your age, position, length of service, and ability to find new work. Use our Severance Pay Calculator to get an estimate, then speak with us.

Can I be fired without cause and still get severance?

Yes. In fact, the majority of terminations in Canada are “without cause.” Unless you were fired for serious misconduct, you are likely entitled to severance pay under common law.

What happens if I don’t accept the severance package?

You don’t have to accept it – and you shouldn’t sign anything until you’ve spoken with a lawyer. Once you sign a release, you may give up your right to pursue full compensation.

How long do I have to take legal action?

You typically have two years from the date of termination to pursue your severance entitlements. After that, you may lose your right to a legal claim – so don’t wait.

Are employees at banks or airlines entitled to severance?

Yes. If you work in a federally regulated industry – like banking, telecommunications, or airlines – you are still entitled to severance pay under federal law and common law. We’ve helped employees from CIBC, RBC, Air Canada, Rogers and more.

Can I rely on the Ministry of Labour for severance advice?

No. The Ministry of Labour (or Employment Standards Branch) only deals with minimum entitlements under employment standards legislation. They can’t help you access your full common law severance, which is often much higher.

🔍 Real-world Example: Two long-serving employees from a Pickering manufacturing company sought Lior Samfiru’s help after getting bad advice from the Ministry’s helpline. Read more here.

What if my employment contract has a termination clause?

Some employment contracts include termination clauses that try to limit your severance rights. However, many of these clauses are not enforceable. Our lawyers can review your contract and let you know what applies to your case.

Can my employer give me notice instead of severance pay?

Yes, but the amount and quality of that notice matter. Employers can:

  • Provide working notice (you continue working until your termination date)
  • Offer pay in lieu of notice (a severance package)
  • Provide a combination of both

If the working notice isn’t long enough, you’re likely still owed severance pay.

Is it better to quit or get fired?

In general, you are not entitled to severance pay if you quit — unless you’ve been constructively dismissed (your employer made the job intolerable). Also, quitting usually disqualifies you from Employment Insurance (EI), unless it’s due to constructive dismissal.

Can severance be paid over time or all at once?

Yes. Severance can be paid:

  • As a lump sum
  • Over time as salary continuance

Our lawyers often negotiate the method that benefits you most.

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Is severance pay different by job or company?

Yes. Different companies and industries may offer varying packages — but your legal rights are based on your role, not your employer’s policies.
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Resources About Severance

Explore some of our past blogs and episodes from the Employment Law Show related to severance pay in Ontario, BC and Alberta.

Pocket Employment Lawyer

Before you call an employment lawyer, use the Pocket Employment Lawyer to determine if your employment law rights have been violated, and what you should do about it.

Use the Pocket Employment Lawyer

Severance Pay Calculator

The accurate, anonymous and FREE severance pay calculator tool that has been used by over 1,000,000 people to calculate their possible severance package in Ontario, BC and Alberta.

Use the Severance Pay Calculator

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See What Our Clients Are Saying

I was wrongfully terminated after 4 years on the job. After doing some research, trying their Severance Pay Calculator and watching The Employment Law Show, I reached out to Samfiru Tumarkin LLP and I'm sure glad I did. They got me a very fair settlement in what I consider to be a very short amount of time. Great work!
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I called Samfiru Tumarkin LLP after listening to their employment law segments on the radio. Gurlal Kler made my mom feel valued and respected. He understood the struggle of a 62 year old being let go. Gurlal was able to get much more that wait was originally offered, plus the employer paid some of the legal fee.
Jujhar S.
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I had the pleasure of working with Andrew Goldberg, who helped me with my severance package. The end result that he achieved was beyond my expectations and I was very pleased as it will go a long way with providing financial security for me and my family. Overall it was a very stress-free and amicable experience. I would highly recommend Samfiru Tumarkin LLP.
Jameel S.
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I am very grateful to have obtained the services from your firm for my recent severance settlement! I contacted Melanie Henriques and she was very prompt and professional in dealing with my matter. I would definitely recommend her and the legal services from Samfiru Tumarkin for any legal employment concerns.
Sandra C.
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I only have the most positive things to say about David Vaughan from Samfiru Tumarkin. It is always stressful when you have to deal with severance package questions but David provided wise counsel and great advice. He was extremely responsive walking me through the process, so that any outstanding issues could be resolved quickly.
Lee Ann S.
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