Termination Pay

How do you calculate termination pay in Ontario?

Human Resources
 Min read
September 10, 2021

Termination is simply the ending of a relationship between an employee and their employer. An employee who is being terminated without cause is entitled to receiving a notice of termination or termination pay based on the tenure accrued with the employer.

To be eligible to receive termination pay or notice of termination, the employee must have worked at least 3 months for the employer. Should the employer choose to provide termination pay, the amount is calculated by taking the sum of the employee’s weekly wages during the previous 8 weeks in which the employee worked normal or average hours, dividing the total by eight, and multiplying the resulting amount by the number of weeks the employer is obligated to pay based on the employee’s tenure and in accordance with Section 63 of the Employment Standards Act.

The amount is payable on the day of termination.

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