Severance Pay Can Be Adjusted Based on Years of Service
Losing a job can be very stressful. Not only do you have to worry about where your next employment opportunity will come from, but you also have to figure out how to pay the bills until then. For this reason, if you are involuntarily fired and receive a severance package in Ontario, it is important that you understand how much your employer is offering you before you accept the offer. Whether you are being terminated for poor performance or because of a company’s financial struggles, if you have worked with your employer for a long period of time, you may be entitled to significant compensation upon termination.
Generally speaking, non-union employees in Ontario are entitled to severance pay when their company is terminating them. If a company fires a worker for a reason that is not related to serious misconduct or other protected grounds such as age, gender, or sexual orientation the employer has to provide a full severance package. However, even if there is a valid reason for firing an employee, courts and the Ministry of Labour require that the reason be very good and that the employer give a lot of notice before terminating.
The minimum severance pay Ontario that an employer must provide is stipulated by the Employment Standards Act (ESA), which states that an employee should be paid one week of wages for each year of service with the company, up to a maximum of 26 weeks. Despite this, it is crucial to remember that the ESA does not dictate how large a severance package can be and that there are other factors that go into the calculation of severance pay ontario.
How Severance Pay Can Be Adjusted Based on Years of Service
Many people do not fully grasp how their severance pay ontario can be increased based on common law considerations. This is a set of judge-made laws derived from precedents that determine how much an employee should receive when they lose their job. Common law severance pay can add on tens of thousands of dollars to what an employer is required to pay a terminated worker.
While there are many different factors that go into the calculation of severance compensation, the most important factor is an employee’s length of employment with their company. This is because an employee’s length of employment will affect how easy it will be for them to find new employment.
If you are facing job loss and need help understanding your entitlements, a Toronto severance pay lawyer at Samfiru Tumarkin LLP can use various laws and factors to determine how much your severance pay should be and enforce those rights with your employer. The law firm can help you maximize the amount of your severance package by potentially increasing it by tens of thousands of dollars. Contact the office today to schedule a free consultation. The call is toll-free and confidential. Samfiru Tumarkin LLP represents clients across the province of Ontario. The firm is recognized for its expertise in the area of employment litigation.