Termination Pay

Termination pay entitlement

An employee who has been terminated from work may be entitled to receive termination pay and/or severance pay. Section 57 of the Employment Standards Act provides an idea of the length of notice a dismissed employee is entitled to. The employer must give working notice allowing the employee to continue working during the notice period, or the employer may have to pay the corresponding amount of termination pay.

It is common for an employee who has been dismissed to receive a termination letter. If the employer is not dismissing the employee for cause, the termination letter normally sets out the length of notice the employer believes the employee is entitled to, or the amount of termination pay the employer is willing to pay.

If you have received a termination letter, it is important to understand that as an employee you may be entitled to a lot more pay in lieu of notice at common law than the Employment Standards Act minimums. Employees often accept amount offered in their initial termination letter without consulting with an employment law lawyer. There are many instances when employees miss out on receiving significantly higher compensation by quickly accepting a package from an employer without seeking legal advice.

An employee who has been dismissed and believes that his or her rights have been violated must proceed with either an Employment Standards Act complaint for termination pay and severance pay or a civil action in Superior Court. The employee must select one process and cannot proceed with both.

Termination pay and the Employment Standards Act

A common resource used to get an idea of what termination pay an employee may be entitled to is the termination pay tool found at the Ontario Ministry of Labour website. As an employee, you can get an idea of what you may be entitled to. The tool also has a calculator and sample calculations that allow an employee to do a quick calculation.

It is very important to note that the termination pay tool is only a guide and you may actually be entitled to a lot more compensation or damages if you pursue an wrongful dismissal action. It is advisable to speak with an employment lawyer before proceeding with a claim for termination pay. The termination pay tool on the Ministry of Labour website is not a substitute for legal advice from a wrongful dismissal lawyer.

The information on this website is for informative purposes only. It is not legal advice. You can only retain a lawyer after a consultation. If you need a wrongful dismissal lawyer or have employment law questions, call me at: 416 323 3614