
Severance Package Review in Ontario: What a Lawyer Can Still Change
A severance package review in Ontario: what a lawyer can still change, what it costs, and why the deadline in your letter has no law behind it.
Before you sign an offer or accept a severance package, have an employment lawyer read it. The law sets a minimum, and some employees are owed more.
Two common mistakes are signing a contract without reading the termination clause and accepting a severance offer without checking it against what you are owed. In Ontario, the Employment Standards Act sets only the minimum, and the province's guide notes that some employees have greater rights under the common law.
Olanur matches you with verified employment lawyers who review offers, termination letters and severance packages, explain where you stand in plain English, and tell you whether it is worth pushing back.
Olanur is a legal matching platform, not a law firm. The services described on this page are performed by independent licensed lawyers and legal professionals you can be matched with, and each sets their own fees.
Ontario's Employment Standards Act sets the minimums for most workplaces in the province, though it does not cover federally regulated employers. Those minimums are only the floor: Ontario's own guide says some employees have greater rights under the common law. Each rule below was checked against the current Act, its regulations and the province's official guide. To run your own numbers, try our severance pay calculator.
Once you have worked somewhere for three months, the employer must give written notice or termination pay to end the job: one week if you have been there under a year, two weeks from one to under three years, then one more week for each year up to eight weeks at eight years or more. Longer notice of 8 to 16 weeks usually applies when 50 or more employees are let go at one location within four weeks. The employer does not have to give a reason.
On top of termination pay, you are owed severance pay if you worked there five years or more and the employer has a payroll of $2.5 million or more, or you are one of 50 or more employees let go within six months because all or part of the business at that location closed permanently. It is one week's regular wages for each completed year, plus completed months divided by 12, up to 26 weeks.
No contract or agreement can waive an employment standard, and any attempt to do so is void. A term that gives you more than the minimum applies instead. Termination pay and other money owed under the Act must be paid by the later of seven days after the job ends or your next regular pay day. Severance pay can be spread over up to three years, but only if you agree or the ministry's Director approves.
You lose your notice and severance minimums only in listed cases, such as wilful misconduct, disobedience or wilful neglect of duty that is not trivial and has not been condoned by the employer. Ontario's guide says poor work that is accidental or unintentional is generally not considered wilful.
The Act treats it as a termination when your employer constructively dismisses you and you resign in response within a reasonable time. Ontario's guide says this may happen when the employer makes a significant change to a fundamental term of your job without your actual or implied consent. Our constructive dismissal guide explains how that test works.
If you file an employment standards claim for termination or severance pay, you cannot also sue for wrongful dismissal over the same job loss unless you withdraw the claim within two weeks. If you sue first, you cannot file the claim.
An employment standards claim must generally be filed within two years of the violation. A wrongful dismissal lawsuit has the same two-year limit, counted from when you discovered the claim. A Human Rights Tribunal application must generally be filed within one year of the incident, or of the last one in a series, though the Tribunal can allow a late filing if the delay was in good faith and no one is substantially prejudiced by it.
Since 25 October 2021, employers in Ontario cannot have employees sign non-compete agreements, and one signed in breach of that rule is void. The exceptions are C-suite executives and a seller who becomes the buyer's employee right after selling a business.
Sources, checked 3 October 2026
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A lawyer reviews your employment agreement before you sign it and gives you a plain-English summary of the risks, your obligations, compensation, termination terms and restrictive clauses.
Review of a termination or severance letter to assess whether the offer is fair, whether it complies with the law, and what your next move should be. Useful for both employees and employers.
A lawyer reviews your severance offer and negotiates for more: notice pay, benefits continuation, bonus, references and the release terms. The legal minimums are a floor, so a lawyer checks whether you may be owed more and asks for it in writing.
You were let go and the package does not reflect what the law owes you. A lawyer drafts a demand letter for proper notice, severance, unpaid wages, bonus or commission.
A structured review of harassment, discrimination, reprisal or accommodation concerns at work, ending with a clear picture of your legal options and what evidence to keep.
You are paid as a contractor but treated like an employee. A lawyer reviews the relationship and explains what that means for termination pay, taxes, EI and CPP, for the worker or the company.
Preparation or review of an employment standards claim about unpaid wages, overtime, vacation pay, termination pay or statutory leave, filed on the ministry's form with your evidence organized. In Ontario, claims must generally be filed within two years of the violation.
Review of a workplace injury claim, denial, appeal or return-to-work dispute, so you understand the benefits at stake and the deadlines that protect them.
Tell us what happened in plain language. No legal jargon needed, and it is completely private.
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The rules are provincial, but the courthouse, the tax and the paperwork are not. These pages set out what is actually different where you live.
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The deadline in the letter is set by your employer, not by a statute, so you can ask for more time to get advice. Keep in mind that an offer above the legal minimum is not guaranteed to stay open, so ask for any extension in writing. Your Employment Standards Act minimums cannot be waived, and termination pay must be paid by the later of seven days after your job ends or your next pay day. Ontario's own guide says some employees have greater rights under the common law and may wish to get legal advice.
The termination clause is the big one, because it may try to limit you to the Employment Standards Act minimum when you might otherwise have greater rights under the common law. Any clause that gives you less than the minimum is void. Lawyers also flag non-compete clauses, which are banned for most Ontario employees, bonus language that vanishes on termination, and probation terms.
Under the Employment Standards Act, severance pay is your regular weekly wage multiplied by your completed years of service plus completed months divided by 12, up to 26 weeks. Ontario's guide gives the example of someone earning $1,000 a week after 7 years and 9 months: $1,000 x 7.75 = $7,750. It applies only if you have five or more years and the employer meets the payroll or mass-closure test, and it is separate from termination pay. Our guide on how much severance you are entitled to covers the rest.
Statutory severance pay is mandatory when the conditions are met: five or more years with the employer, and either a payroll of $2.5 million or more or a closure that ends 50 or more jobs within six months. Termination notice or pay is a separate requirement that applies to almost everyone after three months. Neither can be waived by contract.
Yes, as long as the employer gives the notice or termination pay the law requires. The Act does not require an employer to give a reason. But a firing cannot be a reprisal for asking about or using your employment standards rights, and it cannot be based on a ground protected by the Human Rights Code, such as disability, age, sex, race or family status.
No Ontario statute defines it. Ontario's guide uses the term for a court action an employee brings to enforce rights greater than the Employment Standards Act minimums, which generally cannot be enforced through the employment standards process. Whether you have such a claim depends on your contract and your circumstances, which is what a lawyer reviews. Our wrongful dismissal guide explains the process.
There is no official fee schedule. Fees depend on the lawyer and on whether you need a one-off review or a negotiation or lawsuit. Contingency fees, where the fee depends on the result, are allowed in employment matters and must be in a written agreement. On Olanur you see a lawyer's pricing before you commit.
Yes. Getting matched with a verified employment lawyer is free. You only pay the lawyer's own fee if you book a consultation or a fixed-fee review, and you see that pricing before you commit.
Written by our editorial team and grounded in Canadian law, so you can walk into any conversation prepared.

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