What is the Difference Between “Termination Pay” and “Severance Pay” in Ontario? Termination pay vs severance pay is a common question we receive. It is no surprise that we receive so many questions about the difference between termination pay and severance pay as there appear to be a lot of misconceptions out there. The confusion …
Severance pay
What is severance? Severance means the same thing as “notice”, or “termination pay” or “reasonable notice”, so when we speak about severance, know that we are also talking about “notice”, or “termination pay” or “reasonable notice”. Severance, or “notice”, or “termination pay” or “reasonable notice”, all mean this: the amount of pay an employer must …
Ontario severance pay can mean one of three things: (1) “statutory Ontario severance pay”, (2) “common law Ontario severance pay” and (3) “severance pay according to your employment contract”. How much severance pay in Ontario am I entitled to? The amount of Ontario severance you are entitled to depends on which kind of severance applies …