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Generally, when an employer ends an employment relationship, the employee must be provided with written notice of the termination of their employment, payment in lieu of notice, or some combination of both. Generally, employees will qualify for termination pay unless it can be demonstrated that they have been terminated for cause, meaning that they have engaged in wilful misconduct, wilful disobedience or wilful negligence.

Severance pay, in comparison, is provided in much more limited circumstances to terminated employees and is not the same as written notice or pay in lieu. For example, severance pay is generally only provided to employees with five (5) years or more of service (whether continuous or not) where the employer has an annual payroll in Ontario equivalent to at least $2.5 million or where the employment of 50 or more employees has been severed in the previous six (6) months.

If you have recently been terminated and have questions in relation to your entitlements, including whether you have received a fair termination package, please contact Toronto employment lawyers, Sultan Lawyers, at (416) 214-5111 or via email to mlahert@sultanlawyers.com.