requirements for providing severance pay ontario
Losing your job can be a stressful, scary and overwhelming experience. It can also leave you wondering if you are entitled to severance pay ontario and if so how much. The short answer is yes, employers in Ontario are legally required to provide severance pay when they terminate an employee’s employment. However, severance pay ontario can vary greatly depending on a number of factors. These include your length of service, your position and your chances of securing a new job.
The minimum severance pay Ontario is stipulated by the Employment Standards Act (ESA). This law requires larger companies with a global payroll of $2.5M+ to pay one week of regular wages for every year of service, up to a maximum of 26 weeks. These wages are meant to be enough to cover your expenses while looking for a new job. However, the ESA is only the minimum severance pay you can receive, and common law considerations may result in your employer offering a more substantial severance package.
There are a few exceptions to the ESA’s requirements for severance pay, including federal employees, people employed through a college-approved work program, and people who hold political, judicial, religious or elected trade union positions. If you are not sure whether the ESA’s provisions apply to your employment situation, it is best to consult an employment lawyer.
Are there legal requirements for providing severance pay ontario
It is also important to remember that the ESA severance pay minimums are only available when you have been dismissed without cause. If you were fired because of a poor performance review, the ESA does not provide you with severance pay. However, if you are fired because of the company’s decision to close a location or because it was going bankrupt, your employer is required to give you severance pay.
You are also entitled to severance pay if you were terminated because of a protected class or group in accordance with the Human Rights Code. The Code prohibits discrimination on the basis of age, ancestry, citizenship, colour, creed, disability, family status, gender expression, sexual orientation, marital status, place of origin, or race. Therefore, if you were dismissed from your job because of a protected class or group, you are entitled to severance pay if the termination was not for good cause and the company followed due process.
The most common reason for termination is lack of “cause.” The Ministry of Labour and Ontario courts require that you be given working notice or severance pay if your employer decides to dismiss you for this reason. Moreover, the Ministry of Labour and courts will not allow you to be fired and not paid anything, unless your employer can prove that you have committed an extremely serious misconduct or has failed to give you the opportunity to correct this misconduct.
There are many details and intricacies surrounding severance pay, and it is important that you have an experienced employment lawyer by your side to protect your interests. Contact us to set up an appointment to discuss your case.