Termination and Severance Pay

A reasonable severance package in Canada varies substantially based on the circumstances of the employee. While there are many factors which can contribute to the calculation of a reasonable package, there are common factors which are typically considered, known as the Bardal factors.

Employees can try to negotiate alone, but almost always, a lawyer can get them more. Seeking the advice of an experienced employment lawyer helps a dismissed employee understand whether the severance package they are offered is reasonable in comparison with what a judge will likely give them.

An employment lawyer is likely in the best position to assess the appropriate severance package of an employee who has been let go. A good lawyer will know how and when to negotiate, and when to initiate a Statement of Claim to get defendants to pay you through settlement or a court order.

Yes – having your employment terminated by your employer is the same as being fired or let go. A termination of employment is either with or without cause, which affects whether or not you are entitled to termination pay. Sometimes employers try to claim that a termination is for cause when it is not. Wrongful dismissal is when an employee is told they are in fact fired or dismissed.

As an employee, if your employment is terminated without cause – that is, through no fault of your own, you are entitled to termination pay, or common law reasonable notice or pay in lieu. If you are an employee and have been terminated, contact an experienced employment lawyer to help assess your case.

In Ontario, employers are able to dismiss an employee without reason – as long as the reason is not related to Human Rights. Employers have to provide the appropriate amount of notice or termination pay to the dismissed employee. The appropriate amount of notice will largely depend on the employment agreement if applicable, and if not, on common law reasonable notice.