Severance Pay Lawyers in Ontario

Severance packages offered by Ontario employers at termination are almost always lower than what employees are legally entitled to, and once you sign the release, your right to claim more is usually gone for good. A severance pay lawyer can tell you what your package should actually be worth before you sign anything. Achkar Law's severance lawyers help employees across Ontario review their offer, calculate their full entitlement under the Employment Standards Act, 2000 and the common law, and negotiate or pursue the compensation they are owed.

How Much Severance Are You Entitled to in Ontario?

Severance in Ontario comes from two separate frameworks, and the gap between them is where most of the money sits. Knowing both is how you tell whether your offer is fair.

ESA termination pay and severance pay (the legal minimum)

Under the Employment Standards Act, 2000, an employee dismissed without cause is owed termination notice or pay in lieu of roughly one week per year of service, up to a maximum of eight weeks. Separately, statutory severance pay of up to 26 weeks applies to employees with five or more years of service whose employer has a payroll of at least 2.5 million dollars, or who is severing 50 or more employees within six months. These are the floor, not the ceiling.

Common-law reasonable notice (usually far more)

For most Ontario employees the larger entitlement comes from the common law, where courts award reasonable notice based on your circumstances. For senior or long-service employees this regularly reaches 18 to 24 months, well beyond the ESA minimum. This is where a severance review delivers its real value, and it is exactly the amount initial offers leave out.

Bonus, commission, and benefits

Your package should also compensate the bonuses, commissions, and benefits you would have earned during the notice period, which employers frequently exclude even where you are entitled to them.

Get Your Ontario Severance Package Reviewed If

• You were offered a severance package after a termination
• The offer seems low for your years of service
• Your employer is pressuring you to sign quickly
• You are a senior, specialized, or long-service employee
• The package leaves out bonuses or benefits
• Your contract contains a termination clause you do not fully understand
• The termination may be connected to a leave or a complaint you made
• You simply want to know what your severance should actually be

What Determines How Much Severance You Get

There is no fixed formula. Ontario courts assess common-law reasonable notice using the long-standing Bardal factors, and a severance lawyer applies them to your specific situation:

• Length of service. Longer service generally means a larger entitlement, often well above the ESA minimum.
• Age at termination. Older employees typically receive more, because comparable work is harder to find later in a career.
• Nature of the position. Senior, specialized, and management roles tend to attract longer notice.
• Availability of comparable employment. A thin job market in your field or area can lengthen the notice period.
• Enforceability of your termination clause. Often the single biggest factor, covered below.
• Manner of dismissal. Bad-faith conduct, false allegations, or a misleading reference can add aggravated or moral damages.

You can get a rough starting estimate from our severance pay calculator, but it is no substitute for a lawyer reviewing your actual offer and contract.

An Unenforceable Termination Clause Can Increase Your Severance

Many employment contracts include a clause that tries to cap your severance at the ESA minimum. The important point is that Ontario courts strike these clauses down constantly. Under Waksdale v. Swegon North America Inc., if any part of the termination language breaches the Employment Standards Act, 2000, including a "for cause" provision that was never used, the entire clause is void, and a severability clause will not save it. More recent decisions like Dufault v. The Corporation of the Township of Ignace, which the Court of Appeal upheld and the Supreme Court of Canada declined to revisit in 2025, have struck down common "at any time" and "sole discretion" wording. When the clause falls, the cap disappears and you become entitled to common-law notice instead, which can multiply what you are owed. Do not assume the cap in your contract is valid, it often is not.

What a Severance Pay Lawyer Does for You

Reviews your severance package

We measure your offer against your full entitlement under the Employment Standards Act, 2000 and the common law, and tell you plainly whether it is fair, low, or well short.

Assesses your employment contract

We review whether your termination clause is actually enforceable under current Ontario law. If it is void, you may be owed common-law notice regardless of what the contract says.

Calculates your full entitlement

We give you a clear, accurate picture of what you may be owed, based on your age, service, position, and total compensation, before you make any decision.

Negotiates a better package

Most Ontario severance matters resolve through negotiation. We deal with your employer or their counsel to pursue a settlement that reflects your real entitlement, which consistently beats accepting the first offer.

Pursues a claim if needed

If negotiation does not produce a fair result, our wrongful dismissal lawyers represent you before the Ontario Superior Court of Justice.

Advises on related claims

Severance issues often overlap with constructive dismissal, human rights, or executive entitlements. Senior employees can also see our executive severance page.

Severance Pay Ontario: Common Questions

How much severance pay am I entitled to in Ontario?

It comes from two frameworks. Under the Employment Standards Act, 2000, termination pay runs roughly one week per year of service up to eight weeks, with additional statutory severance pay up to 26 weeks for employees with five or more years of service at larger employers. At common law, courts award reasonable notice based on your age, length of service, position, and the job market, often well above the ESA minimum and reaching 18 to 24 months for senior or long-service employees. There is no fixed formula, so the only reliable way to know your number is to have a severance lawyer assess your specific situation.

Can a severance package in Ontario be negotiated?

Yes. Severance offers are negotiable, and the first offer is rarely the most an employer is required to pay. Employers make low initial offers expecting employees to sign without advice. A severance lawyer can identify the gap between the offer and your full entitlement and negotiate a better result, which in most cases beats accepting the initial package.

Should I have a lawyer review my severance package?

Yes, particularly if you are a senior or long-service employee or the offer seems low. Signing a release without advice can permanently end your right to claim more. A review is usually quick, and the improved settlement frequently exceeds the cost of the advice several times over.

What is the difference between ESA severance and common-law severance?

ESA severance is the statutory minimum, termination pay and, for qualifying employees, severance pay, set by formula under the Employment Standards Act, 2000. It is the floor. Common-law severance is the reasonable notice a court would award based on your individual circumstances, and it is almost always higher. Knowing which applies and how large the common-law entitlement is is the heart of a severance review.

My contract caps my severance. Does that clause apply?

Maybe not. Ontario courts regularly strike down termination clauses. Under Waksdale v. Swegon North America Inc., a single ESA-offside phrase can void the entire clause and leave you entitled to common-law notice, and recent cases such as Dufault v. The Corporation of the Township of Ignace have struck down common wording. Your exact clause needs to be reviewed, do not assume the cap is valid.

How long do I have to accept a severance offer in Ontario?

There is no fixed legal deadline, but employers often set their own short deadlines to pressure a quick signature. You are generally entitled to a reasonable time to get independent legal advice first. Contact a severance lawyer as soon as you receive your package so you have time for proper advice before any deadline. Note the general two-year limitation period for a claim under the Limitations Act, 2002.

Speak With a Severance Pay Lawyer in Ontario

If you have been offered a severance package in Ontario and are not sure whether it is fair, tell us what you were offered and we will follow up promptly with a clear read on what you may be owed. Do not sign a release before speaking with a lawyer, once you sign, your right to more may be gone. You can also reach us directly at 1-800-771-7882. We serve employees in Toronto, Ottawa, and across Ontario, with virtual consultations province-wide.

Phone calls, consultations, forms, and emails sent to us do not create a lawyer-client relationship and do not constitute legal advice.