Severance Pay
Calculator
Most Canadians are entitled to 3-4x more severance than the statutory minimum. Calculate your "Reasonable Notice" estimate below.
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Fill out the form to see your common law estimate.
*This estimate is based on the Bardal Factors. Statutory minimums based on Ontario ESA.
Why is this higher?
In Canada, unless you specifically waived it in a valid contract, you have a right to Reasonable Notice. Judges look at how long it will take you to find a similar job. Older employees or those in senior roles are usually awarded more time.
? Common Questions
What is the difference between ESA and Common Law?
The Employment Standards Act (ESA) is the legal MINIMUM your employer must pay by law. Common Law is based on court precedents and is usually much higher (often 1 month per year of service).
What are the Bardal Factors?
These are the four factors courts use to determine severance: 1. Age, 2. Length of Service, 3. Character of Employment (Seniority), and 4. Availability of similar employment.
What if I signed a contract with a severance clause?
If your contract has a valid termination clause that limits you to the ESA minimum, the court may enforce it. However, many of these clauses are written poorly and can be struck down by a lawyer.
Do I have to pay taxes on severance?
Yes, severance is considered retiring allowance or income and is subject to standard income tax withholding.