Termination Pay Calculator (Ontario)
Minimum notice, termination pay, and severance pay under the Ontario Employment Standards Act.
✓ Verified 2026-09-19 · sources cited below · no sign-up
How the ESA minimums are calculated
Notice / termination pay: no entitlement in the first 3 months; 1 week from 3 months to under 1 year; then 1 week per completed year of service up to 8 weeks. Pay in lieu equals regular wages for the notice period plus vacation pay on that amount, and benefits must continue through the notice period.
Severance pay: applies only with 5 or more years of service and an employer payroll of at least $2.5 million (or a mass termination of 50+). It equals 1 week of regular wages per completed year plus a pro-rated amount for a partial year, to a maximum of 26 weeks.
Common-law notice is separate and usually higher. Courts consider age, role, service length, and job market; awards of one month per year of service are common for mid-career employees. An employment lawyer can assess whether your contract validly limits you to the ESA minimum.
Frequently asked questions
How much termination pay am I owed in Ontario?
Under the ESA, after 3 months of employment you are owed 1 week of notice or pay in lieu per year of service, to a maximum of 8 weeks. Severance pay is additional: 1 week per year (max 26) if you have 5+ years of service and the employer's Ontario payroll is $2.5 million or more.
What is the difference between termination pay and severance pay?
Termination pay replaces the written notice an employer must give. Severance pay compensates long-service employees for loss of seniority and only applies when the 5-year and $2.5M payroll (or 50+ layoffs) tests are met. An employee can be entitled to both.
Is the ESA amount all I can get?
No. The ESA sets the minimum. Unless a valid employment contract limits you to it, common-law reasonable notice is often much larger, frequently several months of pay depending on age, position, length of service, and availability of similar work. Many employees are entitled to more than the ESA minimum.
Is termination pay taxed?
Yes. Termination and severance pay are employment income subject to income tax, CPP, and EI (severance under the ESA may qualify as a retiring allowance with different withholding). Vacation pay must also be paid on termination pay.
Source: Ontario ESA – Termination of employment and Severance pay. Verified 2026-09-19. Minimum-standards estimate only; not legal advice. Exceptions apply (construction, wilful misconduct, fixed-term contracts, federally regulated employers).