Canada Severance Pay Calculator
Statutory minimums are just the floor. Canadian courts regularly award 1 month of pay per year of service under common law. This calculator shows you both numbers.
YOUR SEVERANCE ESTIMATE — CANADA
Statutory Minimum (Employment Standards Act)
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Common Law Estimate (what courts typically award)
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⚠️ Common law entitlement can be significantly higher than the statutory minimum.
How it works
Every province's Employment Standards Act sets a statutory minimum — usually capped around 8 weeks of pay. But Canadian courts have long held that employees are owed "reasonable notice" under common law, typically 1 month per year of service up to a ceiling of about 24 months. Always compare both numbers before signing.
Frequently Asked Questions
Statutory is the legal floor set by your province's Employment Standards Act (ESA). Common law is what courts award for wrongful dismissal — typically 1 month per year of service, up to 24 months. Most employers offer somewhere between the two.
Statutory minimum: up to 8 weeks under the ESA. Common law: Ontario courts have awarded up to 24 months for long-tenured employees. Your actual entitlement depends on your contract and specific circumstances.
Yes, as employment income. Some tax planning (like transferring part to an RRSP) may reduce the tax hit — consult a tax professional.
Under common law, yes — employees have a duty to mitigate by finding new work. Statutory minimums are unaffected.
Your employer ends your employment immediately and pays a lump sum equal to the notice period owed, rather than keeping you on during a working notice period.