Two different payments
Ontario’s Employment Standards Act (ESA) gives two separate minimums when you are let go without cause. You can be owed both.
1. Notice or termination pay
| Length of employment | Notice (or pay instead) |
|---|---|
| Less than 3 months | none |
| 3 months to less than 1 year | 1 week |
| 1 to less than 3 years | 2 weeks |
| 3 years | 3 weeks |
| 4 years | 4 weeks |
| 5 years | 5 weeks |
| 6 years | 6 weeks |
| 7 years | 7 weeks |
| 8 years or more | 8 weeks (maximum) |
Your employer can give you working notice, pay instead of notice (“termination pay”), or a mix. Mass terminations of 50+ people need 8 to 16 weeks.
2. Severance pay
- You worked there 5 years or more, and
- the employer’s global payroll is $2.5 million or more, or 50+ employees were let go within six months because part of the business permanently closed.
Amount: one week of regular wages for each year of employment, plus a share for partial years (completed months ÷ 12), up to 26 weeks.
Example
12 years and 5 months at $1,500 a week: 8 weeks of termination pay ($12,000) + 12.42 weeks of severance ($18,625) = $30,625.
Payment is due within 7 days of the last day or on the next regular payday, whichever is later. Employees who are fired for “wilful misconduct” lose both minimums; this is a high bar.
FAQ
How much severance pay do I get in Ontario?
One week of regular pay per year of employment, plus partial years, up to 26 weeks — if you worked 5+ years and your employer’s payroll is at least $2.5 million.
What do I get after 12 years and 5 months at $1,500 a week?
$12,000.00 termination pay (8 weeks) plus $18,625.00 severance pay (12.42 weeks): $30,625.00 in total.
Is termination pay the same as severance pay?
No. Termination pay replaces notice (up to 8 weeks). Severance pay rewards long service (up to 26 weeks). You can be owed both.
Can I get more than the ESA minimum?
Often, yes. Unless your contract validly limits you to the ESA, common-law reasonable notice can be many months. Get advice before signing a release.
Sources (checked 5 November 2026): Employment Standards Act, 2000 (Ontario), ss. 54–57 (notice of termination: 1 to 8 weeks) and ss. 63–66 (severance pay: 5 years, $2.5 million payroll, 1 week per year to 26 weeks); Ontario Ministry of Labour “Your guide to the Employment Standards Act”; Employment Hero, “Ontario severance pay guide: 2026 rules”; CRA T4001 Employers’ Guide (lump-sum withholding 10% / 20% / 30% outside Quebec).