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Ontario|Employment LawTermination of Employment & Employee Rights 603 Severance pay Severance pay is an additional amount of money paid to some employees who are fired or laid off without good legal reason. If you lose your job through no fault of your own, and you have worked for at least 5 years, and you work for a company whose annual payroll is at least $2.5 million, you usually have the right to severance pay. Generally, severance pay is equal to one week's pay for every year you worked, to a maximum of 26 weeks of pay.
- When is severance pay paid?
If you are entitled to severance pay, your employer is usually required to pay you the entire amount within two weeks after your job ends. Your employer is also required to pay all wages and vacation pay owed to you within 7 days of termination.
If you are entitled to severance pay and have not received it within two weeks of your job ending, you may be able to get assistance from the Employment Standards office. This office is listed in the Blue pages of your telephone book. However, a claim under the Act for termination or severance pay prevents you from suing for wrongful dismissal. Before making such a claim, you should consult with a lawyer.
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