Are You Entitled to Severance Pay?

Severance pay is a monetary entitlement (compensation) that is intended to provide financial support to ease your transition from one place of work to another.

You have the right to collect severance pay if you have completed at least 12 consecutive months of continuous employment before your dismissal or layoff resulted in a termination of employment.

You are entitled to two days’ regular wages for each full year that you worked for an employer before your termination of employment. The minimum benefit is five days’ wages.

You are not entitled to collect severance pay if:

  • you have been dismissed for just cause;
  • you quit your job;
  • you did not return to work after your employer recalled you from a layoff; or
  • you were entitled to a pension under a registered pension plan, the Old Age Security Act, the Canada Pension Plan and/or the Quebec Pension Plan on or before ceasing to be employed.

See Pamphlet #10 - Terminations for full details.

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Date Modified:
2012-02-15