Federally regulated employees may be entitled to two separate statutory payments when employment ends without just cause.
Notice or wages in lieu
Written termination notice or wages in lieu, beginning after at least three consecutive months of continuous employment.
- After three consecutive months: minimum two weeks
- After three completed years: one week for each completed year, up to a maximum of eight weeks
Federal severance pay
Separate from notice, beginning after at least 12 consecutive months of continuous employment.
The minimum is generally the greater of:
- Two days of regular wages for each completed year of employment, or
- Five days of regular wages
Federal severance is not capped at eight weeks, and its formula is measured in days rather than weeks.
You can receive both
Federal statutory severance is separate from notice or wages in lieu, and is generally paid in addition to it.
The unjust-dismissal remedy
This is what makes the federal regime distinctive. Federally regulated employees with 12 or more months of service have an unjust-dismissal remedy that can include reinstatement.
Getting your job back is an outcome provincial employees generally cannot obtain through employment standards.
Ten years of service
Employees with 10 years or more of service have special statutory protection against dismissal or suspension without good reason or just cause, subject to exceptions.
Statement of benefits
Federally regulated employers must provide a written statement setting out wages, vacation pay and other entitlements on termination.
Confirm jurisdiction first
The Canada Labour Code does not apply to every employee at a large or national organisation. Confirm that your industry is federally regulated before relying on any of this.
Where to check
The federal standards are published at canada.ca. If you are federally regulated, provincial figures do not apply to you.