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Termination Pay

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How much notice of termination should I get?

If you have been continuously employed for three months or more, and your employer "lets you go", your employer usually has to provide either written notice of termination or termination pay. If you are given written notice you will be expected to work through the notice period and will be entitled to no less than your regular wages for a regular work week for each week of notice.

How much written notice is required depends on how long you have been working for an employer:




Length of Employment                              Minimum Notice Required

Less than 3 months                                   None
3 months or more but less than 1 year      1 week
1 year or more but less than 3 years         2 weeks
3 years or more but less than 4 years       3 weeks
4 years or more but less than 5 years       4 weeks
5 years or more but less than 6 years       5 weeks
6 years or more but less than 7 years       6 weeks
7 years or more but less than 8 years       7 weeks
8 years or more                                         8 weeks


How much termination pay should I get?


If you are entitled to notice of termination and don't get the required written working notice (see chart above), you must get termination pay instead. If you do get the required notice, you are not entitled to termination pay.

Termination pay is a lump sum payment at least equal to the regular wages for a regular work week that you would otherwise have earned during the notice period to which you were entitled. Special rules for calculating termination pay apply for employees who don't have a regular work week or are paid on a basis other than time worked (e.g., piece-work rate or commission).

Written notice and termination pay can be combined as long as the number of weeks of notice and the number of weeks of termination pay together equal the length of notice you are entitled to receive.

Source: http://www.worksmartontario.gov.on.ca

 Address: Unit 310, 505 Hwy7 East
                 Markham, ON
                 L3T 7T1



Phone: (647) 297-6896
Fax:     (647) 367-0734
Email:   info@torontoaccountingandtax.com
Website: www.51tax.ca
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