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SEVERANCE PAY CALCULATION
Calculating severance pay includes multiplying your typical weekly earnings by a figure derived from your employment duration. This figure is calculated as follows:
- The total number of complete years you have worked plus
- The number of full months worked in the incomplete year, divided by 12.
Under the Employment Standards Act (ESA), severance pay is limited to a maximum of 26 weeks.
Severance pay must be disbursed to the non-unionized employee within either seven days post-employment termination or on the forthcoming regular payday, whichever occurs later.
Employers are legally permitted to provide severance pay in installments, provided an electronic or written agreement with the employee or the approval of the Director of Employment Standards, Ministry of Labour, Immigration, Training and Skills Development. The installment plan must not extend beyond a three-year period. If, however, the employer misses an installment, the entire severance amount is due immediately.
The Severance Pay calculator on this website provides a general guideline for calculating severance pay in accordance with the Employment Standards Act, 2000 (ESA) in Ontario. The calculation is based on the formulas outlined in the ESA, but individual circumstances may vary. It is, therefore, important to seek specific legal advice for a comprehensive understanding of your rights and obligations under the ESA. While we strive for accuracy, we cannot guarantee the completeness or accuracy of the calculation results. It is advisable to consult with an employment lawyer or qualified professional for personalized advice. In using this calculator, you acknowledge that the results are only an estimate and should not be relied upon as legal advice. The calculator does not consider additional factors that may impact severance entitlements. Further, by using this calculator, you release the creators and operators of this website from any liability arising from the use or reliance on the provided severance calculation.