Under Ontario's Employment Standards Act (ESA), an employer that ends your employment without cause must give you written notice, pay you termination pay instead, or a combination of both. The amount depends on how long you've worked there, and tops out at eight weeks.
ESA notice periods
| Length of employment | Minimum notice or pay |
|---|---|
| Less than 3 months | None |
| 3 months to less than 1 year | 1 week |
| 1 year to less than 3 years | 2 weeks |
| 3 years to less than 4 years | 3 weeks |
| 4 years to less than 5 years | 4 weeks |
| 5 years to less than 6 years | 5 weeks |
| 6 years to less than 7 years | 6 weeks |
| 7 years to less than 8 years | 7 weeks |
| 8 years or more | 8 weeks |
What termination pay includes
Termination pay is a lump sum equal to the regular wages you would have earned during the notice period. During the notice period, whether you work it or are paid in lieu, your employer must also keep up its contributions to benefit plans such as health and dental coverage. Vacation pay is owed on termination pay too.
Mass terminations
If 50 or more employees at one establishment are terminated within four weeks, longer notice applies: 8 weeks for 50 to 199 employees, 12 weeks for 200 to 499, and 16 weeks for 500 or more. The employer must also notify the Director of Employment Standards.
Who isn't entitled
- Employees dismissed for wilful misconduct, disobedience or wilful neglect of duty that isn't trivial and hasn't been condoned
- Employees on certain fixed-term contracts that simply end as agreed
- Some construction employees and other exempt categories
- Employees who refuse an offer of reasonable alternative work
Common law can mean much more. The ESA sets the floor. Unless your contract has a valid termination clause limiting you to the ESA, you may be entitled to "reasonable notice" at common law, often several months or more, depending on age, role, service and how hard it is to find similar work.
Estimate your figures with the calculator, and see whether you also qualify for severance pay.
Frequently asked questions
How much notice does an employer have to give in Ontario?
One week per year of service, with two weeks from one to three years, up to a maximum of eight weeks under the ESA.
Is termination pay taxable?
Yes. It's employment income, and your employer will deduct tax, CPP and EI.
Can my employer make me work during the notice period?
Yes. Working notice is allowed instead of termination pay, as long as your wages and terms don't change during the notice period.
Sources
- Government of Ontario, Your guide to the ESA: Termination of employment