Can Severance Pay Ontario Be Offered in Lieu of Notice?
Severance Pay Ontario Be Offered in Lieu of Notice
Losing your job is a harrowing experience. Whether you saw it coming or were fired without cause, the sudden loss of your source of income can trigger a flood of emotions as well as a whirlwind of activities to find your next job and cover your expenses in the interim. As an employee, you may be wondering whether or not you qualify for severance pay ontario, and if so, how much of a package you might be entitled to receive.
Most non-unionized employees in Ontario are entitled to severance pay if their employer fires them without cause. severance pay Ontario is a form of compensation that companies must give to their employees upon being terminated, either in addition to the termination payment they would have been required to provide under the Employment Standards Act (ESA), or in lieu of it. Typically, a severance package is based on an employee’s years of service with the company and includes both the employee’s regular pay and any overtime they have worked.
However, some employees, especially those with many years of service, can be entitled to severance pay that is even higher than what the ESA stipulates. In those cases, employers must pay one week of regular pay per year of service, up to a maximum of 26 weeks. This is called common law notice, and it is based on judge-made laws that have been developed over the years.
Can Severance Pay Ontario Be Offered in Lieu of Notice?
Some employers will attempt to limit their severance pay obligations by creating legal, but unenforceable, termination clauses in their employment contracts. However, the courts will often strike down these clauses as a violation of the ESA. An experienced employment lawyer will be able to review an individual’s unique situation and provide them with a legal opinion on their entitlement to severance pay upon being fired.
The Ministry of Labour provides an online severance pay calculator that can help you determine the amount you might be entitled to upon being terminated. But it is important to note that this is a tool for general illustrative purposes only and does not take into account all of the relevant factors in play.
Most employers will not offer a severance package that is as high as what they are legally required to do, because doing so could potentially expose them to liability under the ESA. That is why it is crucial that any employee who loses their job, whether they are unionized or not, understands their rights and consults with an experienced employment lawyer before agreeing to any severance package.
This will ensure that they are receiving the fairest and highest severance pay package possible in their situation. Contact us at Samfiru Tumarkin LLP for more information about how we can help you navigate this process. Our team of skilled and seasoned employment lawyers has the skills, resources, and experience to help you. We will work tirelessly to make sure that your rights are protected. We will also fight for you if your employer does not treat you fairly in this process.