Severance pay key issue in terminations

Calculations should be done on case-by-case basis based on number of factors
By Craig Stehr
|Canadian HR Reporter|Last Updated: 08/14/2012

When the employment relationship comes to an end, severance pay is front and centre. It’s designed to bridge an employee to her next job and “keep the employee whole” during the job search.

But many factors should be considered to determine the amount of severance pay an employee will receive. Each province and territory has legislation that addresses minimum standards for workers within their jurisdiction. The federal government also has similar legislation that applies to federally regulated workers. The legislation outlines the minimum obligation for severance and termination pay.

Under the employment standards legislation in Ontario, British Columbia and Alberta, employees must receive a minimum of one to eight weeks’ notice of termination or termination pay, depending on length of service.