Canadian employees terminated without cause are entitled to severance pay. There are two sources: statutory minimums in each province’s Employment Standards Act, and common-law “reasonable notice” determined by courts using the Bardal factors.
ESA vs common law
ESA minimums are a floor, usually 1-2 weeks per year of service, capped at 8-26 weeks. Common law typically awards 1 month per year of service, with adjustments for age (55+), seniority, and availability of similar work in the local market. Cap around 24 months.
Signing a release
Don’t sign a severance release without running the numbers. Employers often offer just ESA minimums, hoping employees don’t realize common-law can be much higher. Always consult an employment lawyer on anything above a few weeks.