Severance Pay Calculator

Ontario termination pay. After 3 months of service: less than 1 year, 1 week; 1 year to less than 3 years, 2 weeks; then 1 week for each completed year, to a maximum of 8 weeks at 8 or more years. Termination pay is that many weeks of regular weekly pay.

Ontario severance pay. A separate amount, paid on top of termination pay, when you have 5 or more years of service and your employer has a payroll of $2.5 million or more, or severed 50 or more employees within 6 months because all or part of the business closed. It is 1 week of regular weekly pay for each completed year of service, plus the completed months of the last year divided by 12, to a maximum of 26 weeks.

Federal termination pay (Canada Labour Code). After 3 consecutive months: 2 weeks of notice or pay in lieu. For an employee who has completed at least 3 years of service, the minimum is 1 week per completed year of employment, to a maximum of 8 weeks.

Federal severance pay (Canada Labour Code). After 12 consecutive months of continuous employment: the greater of 2 days of wages at your regular rate for each completed year of employment, or 5 days of wages. A day of wages is your weekly pay divided by 5 in this estimate.

What this calculator leaves out. Common-law reasonable notice, contract terms, collective agreements, exemptions for specific jobs, benefit continuation, and vacation pay owed on termination pay.

Sources: Government of Ontario, Severance pay — Your guide to the Employment Standards Act — the Ontario severance pay formula, the 5-year and payroll conditions, and the 26-week maximum. Government of Canada, Termination, layoff or dismissal — the Canada Labour Code notice rules and the severance pay formula (the greater of 2 days per completed year or 5 days).