🇨🇦 Ontario ESA
ONTARIO ESA · 10+ YEARS OF SERVICE

Severance pay after 10 years in Ontario

After ten years with the same employer you are well protected by Ontario law. Here is what the minimum looks like on a $65,000 salary.

Your job

The quick answer

Started January 4, 2016, let go November 5, 2026, regular pay $1,250 a week ($65,000 a year), employer with a payroll above $2.5 million:

  1. Length of employment: 10 years and 10 months.
  2. Notice: 8 years or more → 8 weeks → termination pay 8 × $1,250 = $10,000.00.
  3. Severance: 10 + 10/12 = 10.83 weeks → 10.8333 × $1,250 = $13,541.67.
  4. Total minimum: $23,541.67.

Same service (10 years 10 months), different pay

Weekly payTermination pay (8 wk)Severance (10.83 wk)Total
$800$6,400$8,667$15,067
$1,000$8,000$10,833$18,833
$1,250$10,000$13,542$23,542
$1,500$12,000$16,250$28,250
$2,000$16,000$21,667$37,667
$2,500$20,000$27,083$47,083

What counts as “regular wages”?

Your pay for a normal work week, without overtime. If your hours vary, it is your average weekly pay over the last 12 weeks you worked. Commissions are usually included through that average.

On top of the minimum

Apply for EI as soon as you can after your last day even if you receive a large payment — the start of benefits may simply be delayed.

Quick reference: your rights when you are let go in Ontario

When the ESA does not apply

Federally regulated workplaces (banks, airlines, telecoms, interprovincial transport) follow the Canada Labour Code instead, with different notice and severance rules. Some workers are excluded from parts of the ESA, for example certain construction employees and people on temporary layoff that has not yet become a termination.

Before you sign

A severance offer usually comes with a release. Signing it normally ends your right to claim more. Take the time you are given, compare the offer with the ESA minimum on this page and, if the gap to common-law notice could be large, consider a short consultation with an employment lawyer. Many work on contingency for wrongful dismissal claims.

Rules checked on 5 November 2026 against the Employment Standards Act, 2000.

FAQ

How much severance after 10 years in Ontario?

At least 10 weeks of regular pay (plus a share for extra months) if your employer’s payroll is $2.5M+. With 10 years 10 months at $1,250 a week: $13,541.67, plus $10,000.00 termination pay.

What is the maximum termination pay in Ontario?

8 weeks of regular wages, reached after 8 years of employment.

Do benefits continue during the notice period?

Yes. Your employer must keep your benefit plans going for the statutory notice period.

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).

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