SevereArn
Canada · Termination + severance pay
US · UK · CA · AU · NZ · Updated October 19, 2026
SevereArn/Canada

Canada Severance & Termination Pay Calculator

A Canada-specific calculator covering Ontario ESA termination pay (1 week/year, max 8 weeks) and severance pay (1 week/year, max 26 weeks, only with 5+ years and $2.5M+ payroll), plus federal Canada Labour Code entitlements for federally regulated employees. It breaks the two out separately and shows the combined statutory total — the floor, not a common-law estimate.

🇨🇦 2026 (calendar year)

Your employment details

Total statutory entitlement🇨🇦 Canada
$19,600
14.0 weeks total · Ontario ESA
Termination pay$9,800
Severance pay$9,800
Total weeks14.0

Breakdown

Termination pay (7.0 wks)$9,800.00
Severance pay (7.0 wks)$9,800.00
Total statutory entitlement$19,600.00
How we got there
termination pay = 7.0 wks × $1,400 = $9,800
severance pay = 7.0 wks × $1,400 = $9,800
total = $9,800 + $9,800 = $19,600
Ontario ESA termination pay: 1 week per year of service, up to a maximum of 8 weeks. Available to almost all employees with 3+ months of service. This is pay IN LIEU of the notice you would otherwise work.
Ontario ESA severance pay (separate and additional): 1 week per completed year (partial years pro-rated), up to 26 weeks. You qualify because you have 5+ years of service and your employer has $2.5M+ in Ontario payroll. Combined ESA statutory maximum: 34 weeks.
Common-law reasonable notice (Bardal factors) can significantly exceed these statutory minimums — often roughly 1 month per year of service, up to 24 months for long-tenured senior employees. This calculator shows the STATUTORY FLOOR only, not a common-law estimate. If you are being terminated, consult an Ontario employment lawyer — common-law damages are frequently far higher.
Not legal, tax, or financial advice. This shows the statutory floor only. Common-law reasonable notice can far exceed it — often ~1 month per year of service, up to 24 months. Consult an employment lawyer before accepting any offer.

Severance & redundancy in Canada: a complete guide

In Canada, entitlements on termination depend on whether you are governed by provincial employment standards or the federal Canada Labour Code, and on your province. This calculator focuses on Ontario (the most commonly searched province) and federally regulated employees, with a general note for other provinces. Even within Ontario, there are two separate entitlements — termination pay and severance pay — that are often confused but are distinct and additional to each other.

Ontario ESA: termination vs severance

Under the Ontario Employment Standards Act (ESA), termination pay is pay in lieu of working your notice period: 1 week per year of service up to a maximum of 8 weeks, available to almost all employees with 3+ months of service. Severance pay is a separate, additional entitlement: 1 week per completed year (partial years pro-rated) up to 26 weeks, but it only applies if you have 5+ years of service AND your employer has $2.5M+ in Ontario payroll (or 50+ employees are severed in a 6-month period due to a permanent closure). The combined ESA statutory maximum is 34 weeks (8 + 26). This calculator breaks the two out separately so you can see which applies to you.

Federally regulated employees

Federally regulated employees — banks, telecommunications, airlines, interprovincial transport, and similar — are covered by the Canada Labour Code, not the Ontario ESA. They receive notice of termination of 2 weeks (3 months–3 years of service) rising to a maximum of 8 weeks at 7+ years, plus severance pay of the greater of 2 days' pay per completed year of service or a 5-day minimum, after 12 months of service.

Common-law reasonable notice

The most important caveat: Canadian courts recognise common-law reasonable notice, based on the Bardal factors (age, length of service, character of position, and availability of similar work). Common-law notice frequently far exceeds the statutory minimum — often roughly 1 month per year of service, up to 24 months for long-tenured senior employees. This calculator shows the STATUTORY FLOOR only, not a common-law estimate. If you are being terminated, consult an employment lawyer — common-law damages can dramatically exceed ESA entitlements, and many employees leave significant money on the table by accepting a statutory-minimum offer.

Frequently asked questions

What is the difference between termination pay and severance pay in Ontario?

They are two separate entitlements under the Ontario ESA. Termination pay is pay in lieu of working your notice period — 1 week per year of service up to a maximum of 8 weeks, available to almost all employees with 3+ months of service. Severance pay is a separate, additional entitlement — 1 week per completed year (partial years pro-rated) up to 26 weeks — that only applies if you have 5+ years of service AND your employer has $2.5M+ in Ontario payroll (or 50+ employees are severed in 6 months due to a permanent closure). The combined ESA statutory maximum is 34 weeks.

What do federally regulated employees get?

Federally regulated employees (banks, telecom, airlines, interprovincial transport, etc.) are covered by the Canada Labour Code, not the Ontario ESA. They get notice of termination of 2 weeks (3 months–3 years of service) rising to a maximum of 8 weeks at 7+ years, plus severance pay of the greater of 2 days' pay per completed year or a 5-day minimum, after 12 months of service.

Can I get more than the statutory minimum in Canada?

Yes — often far more. Canadian courts recognise common-law reasonable notice (based on the Bardal factors: age, length of service, character of position, and availability of similar work). Common-law notice is frequently roughly 1 month per year of service, up to 24 months for long-tenured senior employees — well above the statutory floor. This calculator shows the statutory minimum only. If you are being terminated, consult an employment lawyer; common-law damages can dramatically exceed ESA entitlements.

Does the Ontario severance pay apply if my employer is small?

Not usually. Ontario ESA severance pay requires 5+ years of service AND an employer with $2.5M+ in Ontario payroll (or a mass severance of 50+ employees in 6 months due to a permanent closure). If your employer is under the payroll threshold, you are still entitled to termination pay (up to 8 weeks) but not the additional severance pay.

Is this calculator legal advice?

No. It provides statutory-minimum estimates using 2026 ESA and Canada Labour Code rules. Common-law notice, contract terms, and individual circumstances can change the outcome significantly. Confirm with an Ontario employment lawyer or your province's employment standards office before relying on this.

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Sources & methodology

A Canada-specific calculator covering Ontario ESA termination pay (1 week/year, max 8 weeks) and severance pay (1 week/year, max 26 weeks, only with 5+ years and $2.5M+ payroll), plus federal Canada Labour Code entitlements for federally regulated employees. It breaks the two out separately and shows the combined statutory total — the floor, not a common-law estimate.

Last updated: October 2026
Ontario: Your guide to the Employment Standards ActCanada Labour Code