Severance Pay In Ontario
Before you sign…
If you have recently retired, or been laid off, then you are entitled to a severance pay from your former employer. This package is often covered under the Employment Standards Act (ESA), yet this coverage is very general. Under the Act, the bottom line coverage is roughly one week of pay per year served up to a maximum of eight weeks, in most provinces. However, it may be different for unionized workers. The package is often paid out in several ways; a lump sum, salary continuance or as deferred payments. While this payment in a time of insecurity may be tempting, you don’t have to settle for the bare minimum.
This coverage can leave you with a short time to get back on your feet. As well as leaving you feeling underappreciated for your hard work and loyalty. This is something that most employees fall for when accepting a package from their employer. Luckily, this is how seeking legal counsel for your severance pay can play to your advantage.
When settling for a severance pay, be sure to account for the factors that the courts can lay out. This can include:
- An employee’s position and experience within the company
- An employee’s age, including how old they were when they started with the company
- How an employee came about joining the company
- An employee’s availability of alternative employment, in the case of being laid off
With these factors being accounted for, courts can often provide a package several times larger than what is being offered. The larger, court-ordered packages can generally span from 2 to 30 months on top of the standard in the ESA due to legislation surrounding the matter.
Severance Package, Things To Keep In Mind
Overall, you don’t want to just settle for the bare minimum, or the first offer sent your way. If you have lost your job through no fault of your own, you are often entitled to a severance package much larger than what is outlined under the ESA. Remember: the legislation under the ESA is only a floor from which to build from. It is not the final offer.
Don’t let yourself be pressured into signing the first thing put in front of you. There are many factors that need to be considered in each unique case. Seeking legal counsel can ensure that you know your employment rights, and just what factors need to be taken into account.
Hummingbird Lawyers LLP will work alongside you. We have experienced employment lawyers that can help you today. So contact us today to request a consultation, and take the first steps towards getting the severance pay that you deserve.
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References and Footnotes
- Your Rights Under the Employment Standards Act, 2000, Employment Standards Act ↩