Canadian Labour Law

Canada Severance
statutory & Common Law

Understanding provincial standards, federal labor code, and the "Common Law" rule for Canadian settlements.

Severance Entitlement in Canada

In Canada, Severance is split into two types: **statutory Pay** (the minimum required by provincial laws) and **Common Law Pay** (the reasonable notice awarded by courts).

statutory Minimums

Provincial laws (like Ontario's ESA) typically mandate 1 week of pay per year of service, capped at 26 weeks, provided the employer has a payroll of at least .5 million.

The Common Law "Rule of Thumb"

Courts often award much more than the statutory minimum. The "Bardal Factors" determine this amount based on:

  • Character of employment (seniority).
  • Length of service.
  • Age of the employee.
  • Availability of similar employment.

Calculate Your Canadian Severance

Estimate your potential common law notice period using our tool.

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