Severance Pay Ontario Be Waived by the Employee
Regardless of whether your employment relationship ends in a voluntary or involuntary termination, you should be aware that you may be entitled to severance pay ontario. This compensation is intended to acknowledge your years of service and can help you cover the cost of finding new employment. The amount you receive will depend on several factors, including the size of your company, the reason for job loss, and how long you have been with the organization.
The ESA requires employers of a certain size to provide their employees with severance pay Ontario upon their termination. The payment is usually equal to one week of regular wages for each completed year of employment, up to a maximum of 26 weeks. Despite being required to provide this payment, some employers may choose to waive this entitlement in their employment contracts. However, in order to do so, the contract must expressly state that the employee is waiving their entitlement to notice and severance pay under the ESA, and identify some other clearly defined notice period (or pay in lieu of notice) and severance package.
There are also severance packages that are provided in addition to the minimum required under the ESA. These are typically negotiated between the employer and the employee in their employment agreement, but they must be consistent with the ESA’s minimum requirements. These packages can include bonuses, car allowances, commissions, and other types of pay. While it is not common for severance packages to be paid out immediately, if your employer does not pay you all of the severance package within three years of your termination date, you can file a claim with the Ministry of Labour.
Can Severance Pay Ontario Be Waived by the Employee?
It is important to note that severance pay ontario and termination pay are not the same thing. Termination pay is an amount of salary that you would have earned if you had not been dismissed from your job, and it is paid in lieu of the required notice period. Severance pay is additional compensation to you, in addition to your termination pay.
Some people may confuse these terms because they are often used interchangeably, but the ESA and the courts have clarified that these payments are not the same. You will need to talk with an experienced Toronto employment lawyer to discuss the details of your case. An attorney will be able to explain your statutory and common law rights to severance pay and will be able to recommend the best course of action moving forward. Contact our office today to schedule a consultation. We look forward to hearing from you! Stacey R. Ball – Employment Lawyer, Toronto
Employees who receive severance pay are generally under an obligation to mitigate their damages by actively seeking new employment. Failure to make reasonable efforts to find new employment may impact the employee’s entitlement to severance pay or result in a reduction of the amount owed by the employer.