Termination Pay | Severance Pay BC

If you’ve been let go from your job in British Columbia, you may be entitled to more than you’ve been offered. Severance pay in BC is designed to compensate employees for their service, and a proper severance package can include much more than basic termination pay. Before signing anything, it’s important to know what you’re owed and how to protect your rights.

Getting let go can feel sudden and stressful. Not all severance packages in BC reflect what employees are truly entitled to under employment laws and common law.

You may have the right to more than what’s offered, especially if the termination was without cause, you’ve worked for years, or your role is senior or specialized.

A lawyer at Achkar Law can review your severance package, explain your options, and help ensure you’re receiving your rightful compensation.

What Is Severance Pay in BC?

Severance pay in British Columbia is compensation an employee may owe when their employment ends. Depending on the circumstances, you may be entitled to severance allowance, notice, or pay in lieu of notice.

In BC, severance pay is meant to ease the transition after job loss, helping employees cover living expenses while they search for new work. A proper BC severance package may go beyond the minimum required under employment standards, taking into account your length of service, position, and circumstances.

What’s Included in a Severance Package in BC?

A severance package is more than just a lump-sum payment. In BC, it can include a combination of payments and benefits.

Depending on your situation, your package may include:

  • Payment in lieu of notice or termination pay
  • Severance allowance reflecting years of service
  • Extended benefits, such as health or dental coverage
  • Severance benefits like pension, RRSP, or stock option entitlements
  • Compensation for lost bonuses or commissions
  • Continuation of other employment perks

Because every case is unique, having your severance package reviewed ensures nothing is overlooked and that you’re receiving every dollar you are entitled to.

Christopher Achkar - Employment Lawyer

“Losing a job is stressful enough; you shouldn’t also have to worry about whether your severance package is fair.

In British Columbia, the difference between minimum entitlements and full compensation can be life-changing.

That’s why it’s so important to get advice before you sign.“
— Christopher Achkar, Employment Lawyer

Termination Pay vs. Severance Pay in BC

Many employees confuse termination pay with severance pay in BC. Termination pay usually refers to the minimum owed under BC’s Employment Standards Act often limited to a short notice period.

However, severance pay in British Columbia can be much greater, especially under common law. Factors like your age, length of service, and type of work can significantly increase your entitlement beyond the minimum standards.

Why Should You Get a Severance Review?

Employers often present severance packages that fall short of what the law requires or what courts have awarded in similar cases.

A professional severance review helps you:

  • Understand your entitlements under BC law and common law
  • Avoid losing out on thousands of dollars in severance pay
  • Protect access to severance benefits and allowances
  • Safeguard your future career and financial stability

Before signing anything, speak to an employment lawyer. A severance package review can mean the difference between minimal compensation and the full amount you deserve.

A Quick Look at Our Client’s Story

After working for years in a demanding role, our client was offered a severance package that didn’t reflect their contributions or length of service. Unsure whether to accept, they reached out to our team. Our severance lawyers reviewed the offer, identified areas for improvement, and successfully negotiated better terms helping our client move forward with greater financial security.

Ahmed's Story

Ahmed thought he had a fair severance deal after 12 years with his employer until a friend urged him to double-check. What seemed reasonable was far less than what he was owed under common law.

Emily's Story

Emily, a member of the marketing team, was unexpectedly informed in a meeting that her position was eliminated due to budget constraints. After receiving a termination letter and being asked to leave immediately, she sought legal advice and learned her rights, which enabled her to hold her employer accountable and secure her owed pay.

Navdeep's Story

Navdeep had dedicated seven years to his job in the IT team at a large company in Toronto, supporting his young family. One morning, he and fifty of his colleagues were abruptly laid off without any warning or compensation. Initially feeling powerless, Navdeep sought legal advice, which empowered him to fight for his rights and secure the compensation he was owed.

Frequently Asked Questions
About Severance Pay in BC

What is severance pay in BC?

Severance pay in BC is compensation provided to employees upon termination, beyond minimum termination pay. It helps recognize years of service and supports employees after job loss.

How is severance pay calculated in BC?

While some websites offer a severance pay calculator, the truth is that each case is unique. Courts in BC look at factors such as age, position, and years of service to determine fair compensation.

What’s the difference between termination pay and severance pay in BC?

Termination pay is the minimum required under the Employment Standards Act. Severance pay in BC can include much more, often several months of pay based on common law.

What should I look for in a severance package in BC?

You should look for severance allowance, continuation of benefits, compensation for lost bonuses or commissions, and other entitlements.

Do all employees in BC get severance pay?

Not always. Your entitlement depends on your employment contract, the reason for termination, and your circumstances. That’s why a severance review is so important.