Kelly-Anne Kidston
There are no minimum standards for termination or severance under the ESA. Some employees may have rights under the common law or other legislation that give them greater rights than notice of termination (or termination pay) and severance pay under the ESA; because such rights generally cannot be enforced under the ESA, some employees may choose to sue an employer in a court for “wrongful dismissal” or pursue other options đ Employees should be aware that they cannot sue an employer for wrongful dismissal and file a claim for termination pay or severance pay with the ministry for the same termination or severance of employment; an employee must choose one or the other đ An employee may want to seek legal advice about their rights. [1]
These rules are the minimum required requirements under ESA. Some employees may be entitled to certain rights under the ESA. Common law or other legislation that give them greater rights than notice of termination (or termination pay) and severance pay under the ESA; because such rights generally cannot be enforced under the ESA, some employees may choose to sue an employer in a court for âwrongful dismissalâ or pursue other options. Employers cannot be sued for wrongful termination and can only file claims for termination pay, severance or both with the ministry. Employees must decide which option they prefer. The rights of employees may be further clarified by legal representation. We appreciate Jeremy Penn’s revisions. [2]
A new article by ontario.caEmployers are not required to inform employees about the reason for their termination of employment under the ESA. An employer may not terminate an employee’s job if they are not prepared to provide proper notice in writing or pay for termination. If the employer asks questions or exercises a right, like refusing work beyond the maximum daily, weekly, or annual hours, the ESA does not allow the employer to terminate the employment of an employee or make any other sanctions. See the section on reprisals. Silvio Kearns, thank you for sharing this information. [3]
In summary, at minimum, all employees in Ontario with 3 months service should be paid 1 weeksâ severance (or 1 weeksâ working notice) per year of service (up to a maximum of 8 weeksâ), and all employees with five or more years of service at large employers (2.5 million dollar payroll) should be given an additional 1 weeksâ severance per year of service (up to a maximum of 26 weeks). Jenny, who worked for Widget Co. (a multi-national manufacturing company) for over 40 years, would have a right to a minimum of 34 weeks’ severance. If she’s havingaving a contract that had a termination clause that provided for anything less than 34 weeksâ severance, then it would be void. Rondalyn Hillary Clinton is to be credited for this. [4]
The Employment Standards Act in Ontario provides minimum amounts for severance payments upon termination. The Act states that employees who have been let go are entitled to one weekâs pay per year of service, to a maximum of eight weeksâ termination pay. If your employment at the company has been for more than five years years and your employer either had a payroll of over $2.5 million or terminated over 50 employees within a six month period, you may also be entitled to an additional week of pay per year of service, to a maximum of 26 weeksâ severance pay. The Ontario Government Guide on Statutory Severance Pay has more information. Marymargaret MacDermott of Jinhua in China, for her revisions. [5]
Article references
- https://www.ontario.ca/document/your-guide-employment-standards-act-0/severance-pay
- https://www.ontario.ca/document/your-guide-employment-standards-act/severance-pay
- https://www.ontario.ca/document/your-guide-employment-standards-act-0/termination-employment
- https://duttonlaw.ca/all-about-severance/
- https://www.monkhouselaw.com/severance-pay-ontario/
