Ontario Severance Pay Calculator
Find out what you're owed: your ESA termination pay and severance pay, and the common law notice Ontario courts award for profiles like yours, anchored to over 2,300 real dismissal decisions. Free, no account needed.
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Real Court Cases
Backed by over 2,300 Ontario dismissal decisions from CanLII.
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Advanced AI analyzes your profile against comparable case outcomes.
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Every cited case includes a direct link to the full decision on CanLII.
How the Severance Calculator Works
- 1
Your ESA minimum
We apply the Employment Standards Act formulas for termination pay and severance pay to your length of service, salary and employer size. This is the floor your employer cannot go below.
- 2
Comparable court cases
We search over 2,300 Ontario decisions on dismissal and severance for employees with a similar age, tenure and role, and show you the ones that matter with links to the full judgments.
- 3
Your common law range
An AI analyst weighs the Bardal factors against those cases and estimates the notice period a court would likely award, in months of pay, and shows the cases it relied on.
How Severance Pay Is Calculated in Ontario
When an Ontario employer ends your job without cause, up to three amounts can be owed. Two are minimums set by the Employment Standards Act, 2000 (ESA): termination pay and severance pay. The third, common law reasonable notice, is what a court awards, and it is usually the largest. The calculator above works out all three. Here is how each one is set.
1. ESA termination pay (section 57)
Termination pay replaces the written notice your employer did not give. You qualify once you have been continuously employed for 3 months, and the amount depends only on how long you have been employed:
| Length of employment | Notice or termination pay |
|---|---|
| 3 months to less than 1 year | 1 week |
| 1 year to less than 3 years | 2 weeks |
| 3 years to less than 4 years | 3 weeks |
| 4 years to less than 5 years | 4 weeks |
| 5 years to less than 6 years | 5 weeks |
| 6 years to less than 7 years | 6 weeks |
| 7 years to less than 8 years | 7 weeks |
| 8 years or more | 8 weeks |
Each week is a week of your regular wages. Your employer must keep your benefits going for the same period, and vacation pay is owed on termination pay: 4%, or 6% once you have been employed for 5 years or more. When 50 or more employees lose their jobs at one establishment within 4 weeks (a mass termination), the notice depends on how many are let go instead: 8 weeks for 50 to 199, 12 weeks for 200 to 499 and 16 weeks for 500 or more. A few employees are excluded, most notably someone dismissed for wilful misconduct, disobedience or wilful neglect of duty that is not trivial and that the employer has not condoned.
2. ESA severance pay (sections 64 and 65)
Severance pay is a separate amount, paid on top of termination pay. It is owed when both of these are true:
- You have been employed for 5 years or more. All of your time with the employer counts, whether continuous or not and whether active or not.
- Your employer has a payroll of $2.5 million or more (its global payroll, not only in Ontario), or let 50 or more employees go within 6 months because it closed all or part of its business permanently.
It is a week of regular wages for each completed year of employment, plus the completed months of the last year divided by 12, up to 26 weeks: 7 years and 9 months gives 7.75 weeks. No vacation pay is owed on severance pay. A temporary layoff that lasts 35 weeks or more in any 52 consecutive weeks can also entitle you to it.
Worked example: 10 years of service at $70,000 a year
Someone let go after exactly 10 years, earning $70,000 a year ($1,346.15 a week), whose employer has a payroll over $2.5 million, is owed at least:
| Termination pay (8 weeks, the maximum) | $10,769 |
|---|---|
| Vacation pay on termination pay (6%) | $646 |
| Severance pay (10 weeks) | $13,462 |
| ESA minimum | $24,877 |
That is the floor, and benefits must continue for the 8 weeks as well. A court assessing common law notice for the same person would usually award more, and how much more depends on their age, their job and how hard similar work is to find, not on the 10 years alone. Enter your own details above to see both figures.
How Many Weeks of Severance Pay in Ontario?
Under the ESA alone, at most 8 weeks of termination pay plus 26 weeks of severance pay: 34 weeks, for someone employed 26 years or more by a large employer (up to 42 weeks in the largest mass terminations). Most people are owed less: after 4 years, the ESA gives 4 weeks of termination pay and no severance pay at all. Common law notice is counted in months rather than weeks, and the ESA does not cap it.
Common Law Reasonable Notice
Unless your contract validly limits you to the ESA minimums, you are also entitled to reasonable notice at common law: the time a court finds you need to find comparable work, paid as damages when your employer did not give it. The ESA amounts are part of that award, not added on top. Courts set it by weighing the four factors of Bardal v. Globe & Mail (1960) together:
- Character of employment: seniority, specialization and responsibility.
- Length of service: longer service, longer notice.
- Age: older employees generally need longer to find comparable work.
- Availability of similar employment: how hard it is to find an equivalent job.
There is no formula. The Court of Appeal for Ontario rejected rules of thumb such as "a month per year of service" in Minott v. O'Shanter Development (1999), which is why two people with the same years of service can be awarded very different notice. Awards range from a few months to about 24 months, and the Court of Appeal has said that more than 24 months is for exceptional circumstances (Dawe v. Equitable Life, 2019). Being recruited away from a secure job can lengthen the notice. You are expected to look for new work, and what you earn during the notice period usually reduces the damages, though never below the ESA minimums (see mitigation).
The calculator does not apply a formula either: it reads the decided Ontario cases closest to your age, service and job, and shows you the awards it relied on with links to the decisions. Read more about reasonable notice in Ontario decisions.
Termination Pay vs. Severance Pay vs. Common Law Notice
| Question | ESA termination pay | ESA severance pay | Common law notice |
|---|---|---|---|
| Who gets it | Employed 3 months or more, unless an exemption applies (such as wilful misconduct) | Employed 5 years or more, by an employer with a $2.5 million payroll or after a qualifying closure | Non-unionized employees dismissed without just cause, unless a valid contract clause limits them to the ESA |
| How much | 1 to 8 weeks of pay (8 to 16 in a mass termination), plus vacation pay | 1 week per year of employment, up to 26 weeks | Set case by case under the Bardal factors, usually from a few months to 24 months |
| Benefits | Must continue for the notice period | None owed with it | The value of lost benefits is part of the damages |
| Reduced if you find a new job | No | No | Usually, by what you earn during the notice period |
| Can a contract take it away | No (ESA s. 5) | No (ESA s. 5) | Yes, a termination clause that complies with the ESA in every respect can limit you to the ESA minimums |
In everyday use, "severance" often means the whole package. More on termination pay and severance pay in Ontario decisions.
Is There a Standard Severance Package in Ontario?
No. There is no standard package, only the ESA floor. Employers often offer the ESA minimum, or a little more, in exchange for signing a release, and the release gives up your right to claim common law notice. The ESA minimum is owed whether or not you sign: only what is offered on top of it can depend on a release. Before you sign, compare the offer with both figures; under your result, the calculator does this when you enter the offer. A deadline of a few days to sign is common, and so is asking for more time to get advice.
What a Severance Calculator Can't Tell You
- Whether your termination clause holds. Ontario courts strike down clauses that could, in any situation, give less than the ESA, and since Waksdale v. Swegon (2020) one invalid part, often the wording about dismissal for cause, voids the whole clause. A lawyer needs to read yours (see termination clauses).
- Whether alleged cause will stand. An employer who alleges just cause must prove serious misconduct, and many allegations fail.
- Damages beyond notice, for bad faith in the manner of dismissal, or under the Human Rights Code when the dismissal was linked to a disability, a pregnancy, your age or another protected ground.
- Your bonus, commission, stock or pension. Whether they are owed during the notice period depends on the plan's wording.
For any of these, the estimate is a starting point. You can ask the AI assistant about your situation, or get help finding an employment lawyer.
Severance Pay in Ontario: Frequently Asked Questions
How much severance am I entitled to in Ontario?
It depends on how long you were employed, how large your employer is and whether your contract limits you to the minimums. The Employment Standards Act (ESA) guarantees termination pay of 1 to 8 weeks once you have been employed 3 months, plus severance pay of up to 26 weeks if you have 5 or more years and your employer has a payroll of $2.5 million or more. Most non-unionized employees dismissed without cause are owed more than that: common law reasonable notice, which Ontario courts set from your age, length of service, job and the availability of similar work, usually somewhere from a few months to 24 months of pay. Enter your details in the calculator to see both figures for your situation.
How is severance pay calculated in Ontario?
There are two layers. The Employment Standards Act (ESA) sets a minimum: termination pay of 1 to 8 weeks depending on your length of service (up to 16 weeks in a mass termination), plus severance pay of up to 26 weeks if you have 5 or more years of service and your employer has a payroll of $2.5 million or more. Unless your employment contract validly limits you to those minimums, common law reasonable notice applies instead, and Ontario courts award far more, often several months up to 24 months of pay, based on your age, length of service, position and job prospects. This calculator shows both figures.
What is the difference between termination pay and severance pay?
Both are ESA minimums. Termination pay replaces the working notice your employer did not give: 1 week after 3 months of service, 2 weeks after 1 year, then 1 week per completed year up to 8 weeks, or 8 to 16 weeks when 50 or more employees lose their jobs at one location within 4 weeks. Vacation pay is owed on it, and your benefits must continue for the same period. Severance pay is an additional amount for long-serving employees of larger employers: 1 week per year of service up to 26 weeks, when you have 5 or more years of service and the employer has a payroll of $2.5 million or more, or has let 50 or more employees go within 6 months because it closed all or part of its business. No vacation pay is owed on severance pay. In everyday use, "severance" often means the whole package, including common law notice.
How many weeks of severance pay do you get in Ontario?
Under the ESA, termination pay is 1 week with less than 1 year of employment, 2 weeks from 1 year to less than 3 years, then 1 week per completed year up to 8 weeks. Severance pay, when it applies, adds a week for each year of employment, counting completed months, up to 26 weeks. So the ESA owes at most 34 weeks (8 plus 26) to someone dismissed on their own, and much less to most people: after 4 years it is 4 weeks of termination pay and no severance pay. Common law notice is not counted in weeks or capped by the ESA: courts award it in months.
How much severance after 10 years in Ontario?
Under the ESA, 10 years of employment gives 8 weeks of termination pay (the maximum) with vacation pay of 6% on it, plus 10 weeks of severance pay if your employer has a payroll of $2.5 million or more: on a $70,000 salary that is $24,877, and your benefits must continue for the 8 weeks. At common law, the 10 years are only one factor: a court also weighs your age, your position and how hard it is to find similar work, so awards for 10 years of service vary widely. The calculator shows the awards in the decided Ontario cases closest to your profile.
What is a standard severance package in Ontario?
There is no standard package. The only fixed amounts are the ESA minimums, which your employer must pay whether or not you sign anything. Many first offers are the ESA minimum or a little more, in exchange for a release that gives up your claim to common law notice, which is often worth much more. Compare any offer with both figures before you sign: enter it under your result and the calculator shows where it falls.
How much severance do I get per year of service?
There is no fixed formula. Under the ESA, termination pay goes by brackets (1 week with less than 1 year of employment, 2 weeks from 1 year to less than 3 years, then 1 week per completed year up to 8 weeks), and severance pay, when it applies, is a week for each year of employment, counting completed months, up to 26 weeks. At common law there is no per-year rule: the Court of Appeal for Ontario has rejected rules of thumb such as "a month per year of service" (Minott v. O'Shanter Development, 1999). Courts weigh the Bardal factors together: the character of your employment, your length of service, your age and the availability of similar work, so two employees with the same years of service can be awarded very different notice. This calculator anchors its estimate to real Ontario decisions with facts like yours.
Does my employment contract affect my severance?
Yes. A properly drafted termination clause can limit you to the ESA minimums. Ontario courts strike down many termination clauses, for example when any part of the clause could ever pay less than the ESA, so have a lawyer review yours before you accept a package. The calculator asks whether your contract has one, and if it does, shows the minimum it could limit you to next to the common law range.
Can I get severance if I was in a union?
Yes, at least the ESA minimum, and often more under your collective agreement. But a unionized employee cannot sue for common law reasonable notice: the collective agreement governs the end of your employment, and disputes about it go through your union's grievance and arbitration process, which has short time limits. Tick "I was in a union" in the form to see your statutory minimum, and talk to your union representative.
Can I get severance if I was fired for cause?
If your employer proves wilful misconduct, disobedience or wilful neglect of duty that is not trivial and was not condoned, you receive nothing under the ESA, and proving just cause at common law is also difficult. Courts hold employers to a high standard and many allegations fail. Choose "With cause" in the form to see what you would be owed if cause is not established.
Do I have to accept my employer's severance offer?
No. You normally have time to review it, and signing a release gives up your right to claim more. Compare the offer with the ESA minimum and the common law range shown here, and speak to an employment lawyer before you sign anything.
I work remotely from Ontario for an employer in another province. Which rules apply?
Usually Ontario's. The Employment Standards Act applies when your work is to be performed in Ontario (section 3), so an employee who works from home in Ontario is generally covered even if the employer is based in another province. The exception is a federally regulated employer, such as a bank, an airline, a telecommunications company or an interprovincial trucking company: its employees fall under the Canada Labour Code instead. Tick "federally regulated" in the form and the calculator applies the Code's minimums.
Is this severance calculator free, and is it legal advice?
It is free and does not need an account. It is an estimate for information only, not legal advice: it cannot read your contract or weigh every circumstance of your dismissal. Use it to understand your position, then consult an Ontario employment lawyer about your specific case.
Want to read the decisions themselves? Browse Ontario cases about wrongful dismissal, severance pay and constructive dismissal, or ask the AI assistant about your situation.
Sources
- Employment Standards Act, 2000, ss. 5, 35.2 and 54 to 65 (e-Laws)
- O. Reg. 288/01, Termination and Severance of Employment (e-Laws)
- Your guide to the Employment Standards Act: Termination of employment (Ontario)
- Your guide to the Employment Standards Act: Severance pay (Ontario)
- Employment Standards Act Policy and Interpretation Manual (vacation pay on termination pay, s. 35.2)
Checked against the Act and the Ministry of Labour's guidance on October 25, 2026. This page is general information, not legal advice.