Twenty years is not just a number. It represents a career, a livelihood, and significant contributions to an employer. When that relationship is ended without warning, most employees are shocked to discover that the severance package being offered covers only a fraction of what Ontario law actually requires.

Here is what you need to know.

The difference between ESA minimums and what you are actually owed

The Employment Standards Act, 2000 sets out minimum entitlements for terminated employees — typically one week of notice or pay in lieu per year of service, up to a maximum of eight weeks. For someone with 20 years of service, that is eight weeks.

But those are the floor, not the ceiling.

Under Ontario common law, courts award "reasonable notice" based on a far more generous analysis. For long-service employees, the range is dramatically higher.

What the Bardal factors mean for a 20-year employee

Courts use a multi-factor analysis first articulated in Bardal v Globe & Mail Ltd. to determine what reasonable notice looks like for any given employee. The key factors are:

• Length of service — 20 years is among the most significant

• Age — the older the employee, the longer the notice period

• Character of employment — management, professional, and executive roles attract longer periods

• Availability of similar employment — if your industry or skill set makes re-employment difficult, courts take that into account

For a 55-year-old manager with 20 years of service, a court might well award 22 to 26 months of common law notice. Compare that to the eight weeks your employer may have offered under the ESA.

ESA severance pay: a separate entitlement

Employees with five or more years of service who are terminated by an employer with a payroll of at least $2.5 million per year are also entitled to ESA severance pay under s.63 — separate from and in addition to termination pay. Severance pay equals one week of regular wages per year of service (and proportionately for partial years), capped at 26 weeks. This is a statutory entitlement your employer cannot contract out of.

Why the initial offer is almost always too low

Employers routinely offer ESA minimums — or only slightly more — knowing that many employees do not know what common law notice actually provides. A termination letter with a settlement offer and a release is designed to look final. It is not.

Once you sign a full and final release, you permanently waive your right to pursue the additional notice period you may have been owed. For a 20-year employee, the gap between what was offered and what common law requires can easily represent six figures in lost compensation.

What to do

Do not sign anything immediately. You have time to consult with an employment lawyer, and doing so costs you nothing — most employment lawyers in Ontario work on contingency for wrongful dismissal matters.

If you have 20 or more years of service and have been terminated, contact King Law before you make any decisions.

King Law · Employment Lawyers · Oshawa, Ontario 📧 steven@kinglaw.ca | 🌐 kinglaw.ca

This post provides general legal information for Ontario employees. It is not legal advice. Contact us directly for advice specific to your situation.