Severance Pay in Ontario Be Negotiated During Employment Contracts

Losing your job is a stressful time for anyone. It can bring with it a flood of emotions, and leave you wondering how you will pay your bills until you find a new job. It can also be a confusing time, trying to figure out how much your employer owes you in severance pay.

Thankfully, non-unionized employees in Ontario can receive severance packages to help them get by after losing their jobs. These severance packages can be in the form of a lump sum or a series of weekly payments. The amount of money you will be entitled to receive depends on several factors, including the length of your employment, how long you worked for the company, and whether you were a full-time or part-time employee.

Severance pay is a specific type of payment that is required under Ontario law. It is separate from, and in addition to, the notice or pay in lieu of notice that employers of a certain size must provide when they terminate an employee’s employment. The minimum severance pay Ontario under the Employment Standards Act is one week of wages per year of service, up to 26 weeks.

Can Severance Pay in Ontario Be Negotiated During Employment Contracts?

However, employers can offer more generous severance packages to their staff than the legal minimum. This is especially true for large companies that have many people in the same position and for older workers who have been with the company for a long time.

You can also negotiate your severance package with your employer, and this is something that you should do before you sign any termination agreement. However, it is important to have an experienced employment lawyer by your side to ensure that you do not end up signing a contract that is less than what you deserve.

The legal team at Samfiru Tumarkin LLP can help you understand your employment rights and entitlements, level the playing field with your employer, and handle intricate details in legal documents such as a full and final release. While it may be tempting to attempt to negotiate your severance package on your own, you will most likely make yourself worse off.

Your employer will often try to limit the amount of severance pay you are entitled to by using a poorly drafted termination clause that is not enforceable. It is important to have a Toronto employment lawyer review any termination agreement or notice period to ensure that you do not agree to terms that are too low for your situation. In some cases, employees are entitled to bonus pay under their employer’s bonus policy that would have been earned during the notice period. Case law in Ontario is still unclear on this issue, so it is best to consult an experienced employment lawyer before accepting a severance package. Stacey R. Ball – Employment Lawyer can assist you with any issues regarding your severance pay in Toronto.