Toronto Wrongful Dismissal Lawyers Advising Employees on Severance Packages
Being terminated from your job can be overwhelming and stressful. During this time of uncertainty, it is critical to obtain legal guidance from an employment lawyer as soon as possible. A lawyer will help you understand your options, guide you through mitigating any risk, and ensure that you receive the most favourable severance package possible after your departure.
At Sultan Lawyers, we represent employees throughout the termination process. We provide the protection employees need following termination. Our exceptional team fights for your rights so that you can focus on yourself, your family, and your career.
Severance Pay in Ontario
It is important to distinguish between termination pay and severance pay, which, legally, are two distinct things.
In Ontario, severance pay is the compensation provided to long-term employees who have had their employment “severed” and is intended to compensate them for certain losses that come with terminating a lengthy employment relationship (including loss of seniority, etc.).
Under the provincial Employment Standards Act, only certain employees are eligible for severance pay. Severance pay will apply to:
- Employees who have worked for an employer for five or more years IF
- The employer has a payroll of at least $5.2 million OR
- The employer has severed the employment of 50 or more employees in a six-month period because all (or part) of their business permanently closed.
An employee’s severance pay will be based on the number of years they were employed with the relevant employer, up to a maximum of 26 weeks’ of pay. In many cases, this will be more than the termination pay to which the employee will be entitled.
Termination Pay in Ontario
Most employees who have been terminated are entitled to either notice of termination, in pay in lieu of that notice (i.e. termination pay). The amount of notice or pay required will depend on the length of time the employee worked for the organization.
For Advice on Severance Packages Contact the Toronto Employment Lawyers at Sultan Lawyers
The knowledgeable employment lawyers at Sultan Lawyers regularly review severance packages and represent employees in negotiating more beneficial terms for their departure. We have advised and guided hundreds of employees following termination and represented them in discussions with their former employers. Where necessary we have represented employees in wrongful dismissal complaints. When you are our client, you can count on our persistence in achieving the best results. Contact us online or at 416-214-5111 for a consultation.
FAQS
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WHAT IS SEVERANCE PAY?
The term “severance pay” refers to compensation that is paid to a qualified employee who has their employment "severed." It compensates an employee for losses that occur when a long-term employee loses their job.
Severance pay is not the same as termination pay, which is given in place of the required notice of termination of employment.
If you have questions in relation to a severance package, and are seeking legal advice with respect to your entitlements, please contact Toronto employment lawyers, Sultan Lawyers at 416-214-5111 or via email to mlahert@sultanlawyers.com.
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Am I eligible for severance pay?
You are eligible for severance pay if your employment is severed and:
- you have worked for the employer for five or more years (including all your time spent in employment with the employer, whether continuous or not and whether active or not)
and
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your employer:
- has a global payroll of at least $2.5 million;
or
- severed the employment of 50 or more employees in a six-month period because all or part of the business permanently closed.
If you were terminated and are seeking legal advice with respect to your entitlements, please contact Toronto employment lawyers, Sultan Lawyers at 416-214-5111 or via email to mlahert@sultanlawyers.com.
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What amount of severance pay am I eligible for?
To calculate the amount of severance pay you are eligible for, multiply your regular wages for a regular work week by the sum of:
- the number of completed years of employment;
and
- the number of completed months of employment divided by 12 for a year that is not completed.
The maximum amount of severance pay required to be paid under legislation is 26 weeks.
If you were terminated from your employment and are seeking legal advice with respect to your entitlements, please contact Toronto employment lawyers, Sultan Lawyers at 416-214-5111 or via email to mlahert@sultanlawyers.com.
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What is a severance package?
The term “severance package” refers to the severance pay that employers offer employees when their employment is terminated without cause. A severance package is intended to help employees in the period between jobs to ease the transition and alleviate stress.
If you were terminated and are seeking legal advice with respect to your entitlements, please contact Toronto employment lawyers, Sultan Lawyers at 416-214-5111 or via email to mlahert@sultanlawyers.com.
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What is an employee severance agreement?
Before your employer gives you your severance package, you typically must sign an agreement that specifies the terms of your termination and how you will receive your severance pay.
Generally, you may be able to choose how you receive your severance pay, which can include choosing from a lump-sum payment, a salary continuance, or a deferred payment.
If you were terminated and are seeking legal advice with respect to your entitlements, please contact Toronto employment lawyers, Sultan Lawyers at 416-214-5111 or via email to mlahert@sultanlawyers.com.
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Should you speak to a lawyer before signing your employee severance agreement?
Yes. Reviewing an employee severance agreement is a complex matter. A knowledgeable lawyer who specializes in employment law can help you determine what you are getting and what you are giving up—and, if needed, help you negotiate for better terms in the agreement.
If you were terminated and are seeking legal advice with respect to your entitlements, please contact Toronto employment lawyers, Sultan Lawyers at 416-214-5111 or via email to mlahert@sultanlawyers.com.
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