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Severance Pay in Canada Made Simple – Guides, Templates and Advice

Canadian severance pay can feel overwhelming, especially when you’re facing job loss too. Many people aren’t sure what their package should include or how to negotiate.

Our guides, examples, and templates make it easier to understand your rights and feel prepared.

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Featured Severance Guides

Explore our most-read resources on severance in Canada. Practical guides, letter templates and negotiation strategies

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Severance and Employment Standards by Province and Territory in Canada

When you’re facing a layoff or termination, it’s important to know your rights under employment law. Each province and territory in Canada sets its own rules for notice, termination pay, and severance. Here’s a direct list of government resources so you can check the official standards where you live.

Employment Standards by Province and Territory

Alberta

British Columbia

Manitoba 

New Brunswick

Newfoundland and Labrador

Northwest Territories

Nova Scotia

Nunavut

Ontario

Prince Edward Island

Quebec

Saskatchewan

Yukon

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Career Resources After Severance

Severance is just one part of your story. Once you’ve taken stock of your situation, the next step is focusing on what comes next.

Whether you’re brushing up your resume, exploring new opportunities, or trying to figure out your next move, these resources can help you get started with confidence.

FAQs

  • Severance pay is compensation your employer may owe you when your job ends. It’s meant to recognize your service and help with the transition. The rules vary by province and by how long you’ve worked.

  • It depends on your length of service, the size of the company, and the laws in your province. For example, Ontario requires severance in some cases where an employee has worked for more than five years. Always check your provincial standards or the federal Canada Labour Code.

  • Each province has its own formula, but it usually takes into account how many years you’ve worked and your regular wages.

    Some employers also offer more generous packages through contracts or negotiations.

  • Yes. Employers often expect some back-and-forth. Highlighting your contributions, years of service, or unique circumstances can sometimes increase what’s offered. Having a written letter ready helps you make your case.

  • Not always. Some workers, like those with very short service or those terminated “for cause,” may not qualify. That’s why it’s important to understand your rights and check the laws in your province.

  • Take a breath and don’t rush to sign. Review the offer carefully, compare it to your legal entitlements, and consider seeking advice from an employment lawyer or HR professional.

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