Employment law
Severance Pay in Canada: Termination Pay and Notice by Province
A province-by-province comparison of the minimum notice or termination pay employers must give in Canada, plus federal severance pay, common-law reasonable notice, Quebec's Civil Code rules and how to respond to a severance offer.
How much severance you are entitled to in Canada depends on where you work, how long you have worked there and what your employment contract says. Every province, territory and the federal government guarantees a minimum notice of termination or pay in lieu, usually between 1 and 8 weeks, and Ontario and federally regulated workplaces add separate severance pay [1] [10]. If your contract does not validly limit you to those minimums, you are usually entitled to much more under common-law reasonable notice (or, in Quebec, under the Civil Code) [11] [21].
Key takeaways
- Every Canadian province and territory, plus the federal Canada Labour Code, sets a minimum notice of termination or pay in lieu for employees dismissed without cause; for an employee with 10 years of service the minimum is 8 weeks in most jurisdictions, but 6 weeks in Prince Edward Island and 4 weeks in New Brunswick and Newfoundland and Labrador.
- Only two regimes add a separate statutory severance payment on top of notice: Ontario's Employment Standards Act (one week per year of service, up to 26 weeks, for qualifying employees) and the Canada Labour Code (the greater of 2 days' wages per full year of service or 5 days' wages, after 12 months).
- Federally regulated employees, such as those at banks, airlines, telecom companies and interprovincial trucking firms, get 2 weeks' notice after 3 months of service, rising by one week a year from year 3 to a maximum of 8 weeks at 8 years.
- Outside Quebec, an employee without an enforceable termination clause is usually entitled to common-law reasonable notice set by the Bardal factors, which courts say generally exceeds 24 months only in exceptional circumstances.
- In Quebec, employees get both the minimum notice under the Act respecting labour standards and the right to reasonable notice under the Civil Code, and courts have awarded reasonable notice of up to 24 months.
- Statutory minimums are floors that a contract cannot reduce, and employees who are dismissed for just cause, as defined by each statute and the courts, are generally not entitled to notice or pay in lieu.
Free calculator
Severance and termination pay calculator
Work out the statutory minimum notice or pay in lieu, plus severance pay where the law requires it.
General information, not legal advice. This shows the employment standards minimum only. Your contract or common-law reasonable notice may entitle you to much more. Speak to an employment lawyer before you sign a release.
Choose Federal if you work for a bank, airline, telecom, railway or other federally regulated employer.
Before deductions, for a regular work week. Annual salary ÷ 52 (≈ $78,000 a year).
Statutory minimum in Ontario
$7,500
- Notice or termination pay5 weeks × $1,500
- $7,500
- ESA severance payNot eligible: the employer must have a global payroll of $2.5 million or more, or have cut 50+ jobs within 6 months because all or part of the business permanently closed.
- $0
- Total statutory minimum
- $7,500
Your employer can give working notice instead of pay, or a mix of both. Severance pay, where owed, is always paid in money.
Common-law reasonable notice is often much higher
Unless your contract has a clear, enforceable termination clause limiting you to these minimums, courts usually award common-law reasonable notice based on your role, age, length of service and the job market. It has no formula, is often several months or more, and generally tops out around 24 months. This calculator does not estimate it.
Termination pay also attracts vacation pay, and your employer must continue benefit and pension contributions during the notice period.
If 50 or more employees are terminated at one establishment within four weeks, mass-termination notice of 8, 12 or 16 weeks applies instead.
No termination or severance pay is owed for wilful misconduct, disobedience or wilful neglect of duty that is not trivial and was not condoned.
Based on the Employment Standards Act, 2000. Sources: Ontario: Your guide to the ESA, Termination of employment; Ontario: Your guide to the ESA, Severance pay. Excludes vacation pay, benefits continuation, group termination rules and any exemptions that may apply to your job.
Find a lawyer
Talk to an employment lawyer in Ontario
A lawyer can check your termination clause and tell you whether you are owed common-law notice on top of the statutory minimum.
This guide compares the statutory minimums in all 14 regimes as of November 2026, explains when common-law notice applies, and covers just cause, severance offers and when to call a lawyer. It is general information, not legal advice.
What is the difference between termination pay and severance pay in Canada?
People use "severance" to describe any money paid when a job ends. Legally, there are three different things.
Statutory notice or termination pay. Each jurisdiction's employment standards law requires an employer who dismisses an employee without cause to give a minimum amount of written working notice, pay in lieu of that notice, or a combination [1] [5]. This is what most provinces mean by "termination pay" and what British Columbia calls "compensation for length of service" [3].
Statutory severance pay. Only two regimes require a separate severance payment on top of notice: Ontario's Employment Standards Act, 2000, and Part III of the Canada Labour Code [10] [1].
Common-law reasonable notice. Outside Quebec, courts imply a term into every employment contract that the employer must give reasonable notice of dismissal unless the contract clearly and lawfully says otherwise. It is set case by case and is usually far larger than the statutory minimum [21]. Quebec has an equivalent right under its Civil Code [11].
How much termination pay am I entitled to in each province?
The table shows the statutory minimum notice (or pay in lieu) for an employee dismissed without cause who has just passed 1, 5 or 10 years of continuous service. "Qualifies after" is the minimum service before any notice is owed. These figures do not include Ontario or federal severance pay, group termination rules, or common-law notice.
| Jurisdiction | Law | Qualifies after | 1 year | 5 years | 10 years | Maximum |
|---|---|---|---|---|---|---|
| Federal (Canada Labour Code) | Canada Labour Code, Part III | 3 months | 2 weeks | 5 weeks | 8 weeks | 8 weeks at 8 years [1] |
| British Columbia | Employment Standards Act | 3 months | 2 weeks | 5 weeks | 8 weeks | 8 weeks at 8 years [3] |
| Alberta | Employment Standards Code | 90 days | 1 week | 4 weeks | 8 weeks | 8 weeks at 10 years [5] |
| Saskatchewan | Saskatchewan Employment Act | 13 weeks | 2 weeks | 6 weeks | 8 weeks | 8 weeks after 10 years [6] |
| Manitoba | Employment Standards Code | 30 days | 2 weeks | 6 weeks | 8 weeks | 8 weeks at 10 years [7] |
| Ontario | Employment Standards Act, 2000 | 3 months | 2 weeks | 5 weeks | 8 weeks | 8 weeks at 8 years [9] |
| Quebec | Act respecting labour standards | 3 months | 2 weeks | 4 weeks | 8 weeks | 8 weeks at 10 years [11] |
| New Brunswick | Employment Standards Act | 6 months | 2 weeks | 4 weeks | 4 weeks | 4 weeks at 5 years [13] |
| Nova Scotia | Labour Standards Code | 3 months | 1 week | 4 weeks | 8 weeks | 8 weeks at 10 years [14] |
| Prince Edward Island | Employment Standards Act (in force June 30, 2026) | 90 days | 2 weeks | 4 weeks | 6 weeks | 8 weeks at 15 years [15] [16] |
| Newfoundland and Labrador | Labour Standards Act | 3 months | 1 week | 3 weeks | 4 weeks | 6 weeks at 15 years [17] |
| Yukon | Employment Standards Act | 6 months | 2 weeks | 5 weeks | 8 weeks | 8 weeks at 8 years [18] |
| Northwest Territories | Employment Standards Act | 90 days | 2 weeks | 5 weeks | 8 weeks | 8 weeks at 8 years [19] |
| Nunavut | Labour Standards Act | 90 days | 2 weeks | 5 weeks | 8 weeks | 8 weeks at 8 years [20] |
Three patterns stand out. First, 8 weeks is the most common ceiling, but Atlantic Canada is lower: New Brunswick tops out at 4 weeks and Newfoundland and Labrador at 6 weeks [13] [17]. Second, the qualifying period ranges from 30 days in Manitoba to 6 months in New Brunswick and Yukon [7] [13] [18]. Third, these are minimums. A contract or collective agreement can give you more, but not less.
Each jurisdiction also has exceptions, commonly for fixed-term or task-based employment, some seasonal and construction work, and dismissal for just cause. Larger group terminations trigger separate, longer notice rules in most provinces [6] [14].
How do the rules work in each province and territory?
Federal: Canada Labour Code
The Canada Labour Code covers federally regulated workplaces, including banks, airlines, telecommunications and broadcasting companies, railways and interprovincial trucking. After 3 consecutive months, employees get 2 weeks' notice or pay in lieu; from 3 years, notice rises by one week per year, to 8 weeks at 8 years [1].
Federal employees with 12 consecutive months of service are also owed severance pay: the greater of 2 days' wages for each full year of employment or 5 days' wages, paid in addition to notice [1]. It is not owed on a dismissal for just cause, a resignation, or the simple expiry of a fixed-term contract [1]. Non-unionized, non-managerial employees with 12 months of service can also file an unjust dismissal complaint within 90 days of dismissal [2].
British Columbia
Under section 63 of B.C.'s Employment Standards Act, an employer owes one week's wages after 3 consecutive months, 2 weeks after 12 months, and 3 weeks after 3 years plus one week for each additional year, to a maximum of 8 weeks [3]. The employer can replace that compensation with written working notice or a mix of both [3]. Unsatisfactory performance or minor misconduct is generally not just cause unless the employee was warned and given time to improve [4]. Severance pay in BC beyond these minimums comes from common-law notice, not the Act. See employment lawyers in British Columbia or search employment lawyers in Vancouver.
Alberta
Alberta requires 1 week after more than 90 days, 2 weeks from 2 years, 4 weeks from 4 years, 5 weeks from 6 years, 6 weeks from 8 years and 8 weeks from 10 years [5]. There is no separate statutory severance in Alberta, so most of the value in a severance pay Alberta claim comes from common-law notice. Browse employment lawyers in Alberta or employment lawyers in Calgary.
Saskatchewan
Employees with more than 13 consecutive weeks of service get 1 week up to 1 year, 2 weeks for more than 1 to 3 years, 4 weeks for more than 3 to 5 years, 6 weeks for more than 5 to 10 years, and 8 weeks for more than 10 years [6]. The province notes that long-serving employees may be owed more under common law, which employment standards officers do not enforce [6].
Manitoba
Manitoba's minimums start sooner than anywhere else: 1 week after 30 days, 2 weeks from 1 year, 4 weeks from 3 years, 6 weeks from 5 years and 8 weeks from 10 years [7]. Manitoba describes just cause as conduct so serious it "essentially breaks the employment relationship," and the employer must prove it [8].
Ontario
Ontario gives 1 week of notice per year of service, from 1 week under 1 year to 8 weeks at 8 years [9]. It is also one of only two regimes with separate statutory severance pay: one week of regular wages per year of service, up to 26 weeks, for employees with 5 or more years whose employer has a global payroll of at least $2.5 million or severed 50 or more employees in six months because of a permanent closure [10]. For worked examples, termination clauses and deadlines, read our full guide to severance pay in Ontario.
Quebec
Quebec's Act respecting labour standards requires 1 week of notice after 3 months, 2 weeks from 1 year, 4 weeks from 5 years and 8 weeks from 10 years [11]. Separately, the Civil Code of Québec (article 2091) gives employees on indefinite contracts a right to reasonable notice, which can exceed the statutory minimum; Éducaloi notes courts have set it at 6, 9, 12, 18 and even 24 months [11]. Employees with at least 2 years of service who believe they were dismissed without good and sufficient cause can complain to the CNESST within 45 days [12]. See employment lawyers in Quebec.
New Brunswick
New Brunswick requires 2 weeks' written notice for employees with 6 months to under 5 years of service, and 4 weeks for 5 years or more [13]. That 4-week cap is the lowest in Canada, which makes common-law notice especially important for long-serving New Brunswick employees.
Nova Scotia
Nova Scotia's Labour Standards Code requires 1 week under 2 years, 2 weeks from 2 years, 4 weeks from 5 years and 8 weeks from 10 years, and does not apply to employees with under 3 months of service [14]. Group dismissals of 10 or more people within four weeks require 8 to 16 weeks' notice [14].
Prince Edward Island
P.E.I.'s new Employment Standards Act came into force on June 30, 2026, cutting the qualifying period to 90 days [16]. Notice is 1 week up to 1 year, 2 weeks from 1 year, 4 weeks from 5 years, 6 weeks from 10 years and 8 weeks from 15 years [15] [16].
Newfoundland and Labrador
Notice is 1 week from 3 months, 2 weeks from 2 years, 3 weeks from 5 years, 4 weeks from 10 years and 6 weeks from 15 years [17].
Yukon
Yukon employees with 6 consecutive months of service get 1 week under 1 year, 2 weeks from 1 year, then one more week for each year from 3 years, to 8 weeks at 8 years [18].
Northwest Territories and Nunavut
Both territories require 2 weeks' notice after 90 days of employment, rising by one week a year from 3 years to a maximum of 8 weeks [19] [20]. Nunavut's exemption regulations exclude some groups, such as many part-time and short-term employees [20].
What is common-law reasonable notice, and how much is it?
Outside Quebec, if your contract has no termination clause, or has one a court finds unenforceable, you are usually entitled to common-law reasonable notice. Courts assess it using the factors from Bardal v. Globe and Mail: the character of the job, your length of service, your age and the availability of similar employment [21]. There is no formula, and "one month per year" is a rule of thumb, not the law.
The Court of Appeal for Ontario has said there is "no absolute upper limit or 'cap'" on reasonable notice, but that "generally only exceptional circumstances will support a base notice period in excess of 24 months" [21]. Courts across the common-law provinces apply the same framework.
The gap between statute and common law can be large. A 55-year-old manager with 10 years of service in Alberta is owed 8 weeks under the Employment Standards Code [5], but a court could award many months of common-law notice. That is why reading the termination clause in your contract matters so much.
In Quebec, the Civil Code right to reasonable notice under article 2091 plays the same role. Relevant factors include age, length of service, how specialized the job was, the job market, and whether the employer recruited you away from secure work [11]. Article 2092 of the Civil Code also prevents an employee from giving up, in advance, the right to an indemnity for insufficient notice.
What counts as just cause for dismissal?
An employer who proves just cause generally owes no statutory notice and no common-law notice [4]. The bar is high. B.C. and Manitoba both describe serious misconduct, such as theft, fraud or violence, as potentially justifying immediate dismissal, while poor performance or lateness usually requires clear expectations, warnings and a fair chance to improve first [4] [8]. The employer must prove the cause [8].
Some statutes use slightly different wording. Nova Scotia, for example, refers to "wilful misconduct or disobedience or neglect of duty that has not been condoned by the employer" [14], and Ontario's severance pay exemption uses a similar wilful misconduct standard [10]. Being told you were fired "for cause" does not settle the question. Many cause dismissals are challenged successfully.
How should I respond to a severance offer?
You usually do not have to sign on the spot. A practical approach:
- Ask for everything in writing: the termination letter, the offer, your employment contract and any benefits or pension summary.
- Check the statutory minimum first. Use the table above. Your employer must pay at least that amount even if you refuse to sign a release.
- Look for the release. Most packages offer extra money in exchange for giving up your right to sue. That extra money is what you are negotiating.
- Read the termination clause in your contract. If it is unenforceable, your entitlement may jump from weeks to months.
- Count benefits, bonus and commission. Notice is not just base salary; benefit continuation and lost incentive pay often matter.
- Mind the deadlines. Federal monetary complaints, including pay in lieu and severance, must be filed within 6 months, and unjust dismissal complaints within 90 days [2]. Quebec's dismissal complaint window is 45 days [12]. Provincial limitation periods for lawsuits vary.
- Keep looking for work. Courts expect dismissed employees to try to find comparable work, and new income can reduce what you recover.
When should I hire an employment lawyer?
Consider getting advice before you sign anything if any of these apply:
- You have more than a few years of service, or you are over 50.
- You held a senior, specialized or hard-to-replace role.
- The offer is close to the statutory minimum in the table above.
- Your employer says it has just cause.
- You were pressured to resign, or your job was significantly changed (possible constructive dismissal).
- You are federally regulated and may have an unjust dismissal complaint.
Many employment lawyers offer a short initial consultation, and some take wrongful dismissal cases on contingency or will review a package for a fixed fee. Even a one-hour review can show whether the offer is fair. For tips on choosing someone, read how to find a lawyer in Canada, or browse employment lawyers across Canada by province and city.
Frequently asked questions
How much severance am I entitled to in Canada?+
It depends on your province, service and contract. Statutory minimums range from 1 to 8 weeks of notice or pay in lieu in most jurisdictions, with Ontario and federally regulated employers adding separate severance pay. If your contract does not validly limit you to those minimums, common-law reasonable notice, or reasonable notice under Quebec's Civil Code, can be worth many months of pay.
Is severance pay mandatory in BC and Alberta?+
Both provinces require termination pay or working notice, but neither has a separate statutory severance payment. B.C. requires up to 8 weeks' compensation for length of service, reaching the maximum at 8 years. Alberta requires up to 8 weeks, reaching the maximum at 10 years. Larger severance packages in both provinces usually reflect common-law reasonable notice rather than the employment standards legislation.
How does severance work under the Canada Labour Code?+
Federally regulated employees get 2 weeks' notice or pay in lieu after 3 months, rising to 8 weeks at 8 years. After 12 months, they are also owed severance pay equal to the greater of 2 days' wages per full year of service or 5 days' wages. Non-unionized, non-managerial employees with 12 months of service can also file an unjust dismissal complaint within 90 days.
Which provinces have separate severance pay?+
Only Ontario and the federal Canada Labour Code require a separate statutory severance payment in addition to notice. Ontario's applies to employees with at least 5 years of service whose employer meets a payroll or mass-closure test, and pays one week per year up to 26 weeks. Every other province and territory provides notice or termination pay only.
Can my employer pay only the statutory minimum?+
Only if your employment contract contains a clear, enforceable termination clause limiting you to the statutory minimums. Courts read these clauses strictly, and many fail. Without a valid clause, employees outside Quebec are usually entitled to common-law reasonable notice, and Quebec employees can claim reasonable notice under the Civil Code. An employment lawyer can review the clause quickly.
Do I get severance if I am fired for cause?+
Generally no. An employer that proves just cause owes no statutory notice and no common-law notice. But the employer must prove it, and the bar is high. Serious misconduct such as theft or fraud may qualify; poor performance or lateness usually does not unless you were warned and given a fair chance to improve. Many cause dismissals are successfully challenged.
This guide is general information, not legal advice. Laws and law society rules change; confirm details with a lawyer or the relevant law society. Spotted something out of date? Email hello@lawyerslist.ca.
Sources
- Termination, layoff or dismissal — Government of Canada (Labour Program). Accessed November 10, 2026.
- Filing a labour standards complaint with the Labour Program: Eligibility and timelines to file a complaint — Government of Canada (Labour Program). Accessed November 10, 2026.
- Interpretation guidelines manual: ESA Part 8, section 63 (Liability resulting from length of service) — Government of British Columbia. Accessed November 10, 2026.
- Quitting or getting fired — Government of British Columbia. Accessed November 10, 2026.
- Employment standards: Termination and lay-off — Government of Alberta. Accessed November 10, 2026.
- Individual Layoff or Termination — Government of Saskatchewan. Accessed November 10, 2026.
- Termination of Employment (fact sheet) — Manitoba Employment Standards. Accessed November 10, 2026.
- Just Cause (fact sheet) — Manitoba Employment Standards. Accessed November 10, 2026.
- Your guide to the Employment Standards Act: Termination of employment — Government of Ontario. Accessed November 10, 2026.
- Your guide to the Employment Standards Act: Severance pay — Government of Ontario. Accessed November 10, 2026.
- Termination of Employment: Understanding Compensation and Notices of Termination — Éducaloi. Accessed November 10, 2026.
- Everything you need to know about terminating an employee in Quebec — Canadian Federation of Independent Business. Accessed November 10, 2026.
- Employee rights including if terminated, laid off, or dismissed — Government of New Brunswick. Accessed November 10, 2026.
- Labour Standards Code, R.S.N.S. 1989, c. 246, s. 72 (consolidated to January 1, 2025) — Nova Scotia Legislature. Accessed November 10, 2026.
- Bill 76, Employment Standards Act, s. 59 — Legislative Assembly of Prince Edward Island. Accessed November 10, 2026.
- PEI's new Employment Standards Act is now in force: what employers need to do now — Stewart McKelvey. Accessed November 10, 2026.
- Labour Standards Act, RSNL 1990, c. L-2, s. 55 — House of Assembly of Newfoundland and Labrador. Accessed November 10, 2026.
- Employment Standards Act, RSY 2002, c. 72, s. 50 (archived consolidation) — Government of Yukon (via Library and Archives Canada web archive). Accessed November 10, 2026.
- Employment Standards: Frequently Asked Questions — Government of the Northwest Territories, Education, Culture and Employment. Accessed November 10, 2026.
- Labour Standards Act, C.S.Nu., c. L-10, s. 14.03 (official consolidation) — Government of Nunavut. Accessed November 10, 2026.
- Dawe v. The Equitable Life Insurance Company of Canada, 2019 ONCA 512 — Court of Appeal for Ontario. Accessed November 10, 2026.
