When an Ontario employer terminates your employment without cause, you are entitled to severance. But "severance" can mean very different things — and the number on the initial offer is almost never what Ontario law actually entitles you to.

ESA minimums vs. common law notice: the critical distinction

The Employment Standards Act, 2000 sets out statutory minimums — the absolute floor below which no termination package can legally fall. Under the ESA, most employees are entitled to termination pay of one week per year of service, capped at eight weeks.

But for the vast majority of Ontario employees, the real entitlement is significantly larger. Under Ontario common law, courts award "reasonable notice" based on the individual circumstances of the employee — and those awards routinely exceed the ESA minimums by a substantial margin.

The employer's initial offer is almost always calibrated to the ESA, not to common law. Understanding the difference is the first step.

The Bardal factors in plain language

Courts use the framework from Bardal v Globe & Mail Ltd. to calculate what reasonable notice means for a specific employee:

Length of service is typically the most significant factor. The longer you have worked for an employer, the longer the notice period.

Age matters considerably. Older employees generally receive longer notice periods — both because re-employment takes longer and because courts recognize the particular financial vulnerability of a 55-year-old entering the job market.

Character of employment refers to your level of seniority, whether you held managerial or professional responsibilities, and how specialized your role was. Senior managers and professionals typically receive more than entry-level or administrative employees.

Availability of similar employment reflects how difficult it will be to find a comparable position. A niche specialist in a contracting industry will receive more than a generalist in a competitive hiring market.

What courts actually award

Every case is different, but approximate ranges give a sense of what Ontario courts provide:

• 3 years of service: often 4 to 6 months

• 7 years of service: often 8 to 12 months

• 12 years of service: often 13 to 18 months

• 20+ years of service: often 18 to 26 months or more

Senior professionals and executives at the upper end of these service ranges frequently receive awards at or above these ranges.

ESA severance pay: a separate statutory entitlement

Employees with five or more years of service who are terminated by employers with annual payrolls of $2.5 million or more are entitled to ESA severance pay under s.63 — separate from and in addition to termination pay. The calculation is one week of wages per year of service, up to 26 weeks. These amounts must be paid regardless of what a court would award for common law notice.

Why the first offer is almost always inadequate

Employers typically offer ESA minimums, or a modest amount above them, as the opening package. For most employees, accepting this offer means leaving a significant amount of money on the table. A brief consultation with an employment lawyer — which typically costs nothing upfront under a contingency arrangement — can tell you exactly where you stand.

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.