Termination Pay vs. Severance Pay vs. Common Law Notice: Ontario's Three Different Entitlements
These three terms get used interchangeably — they should not be. Each is a separate Ontario entitlement with its own rules. A plain-English guide to what eac...
Frequently Asked Questions
How do I know if my contract's termination clause is enforceable?
Have it reviewed by a paralegal or employment lawyer. Common enforceability problems include "just cause" provisions that fall below the ESA standard, failure to address severance pay separately, notice formulas that dip below the ESA minimums in any scenario, and failure to continue benefits during the ESA notice period. The Ontario Court of Appeal has been aggressive about striking down flawed termination clauses, even where the flaw was theoretical.
Does the $2.5 million payroll threshold include my employer's parent company?
Yes, in many cases. The Ontario Divisional Court in Hawkes v. Max Aicher (North America) Limited held that the $2.5 million payroll threshold includes global payroll — not just Ontario payroll. So an Ontario subsidiary of a multinational employer can trigger severance-pay eligibility even if the Ontario operation's own payroll is small.
How long do I have to sue for wrongful dismissal?
In Ontario, a wrongful dismissal claim is subject to the two-year basic limitation period under the Limitations Act, 2002 (s. 4). The clock generally runs from the date of termination. Do not delay — claims filed late are usually struck out regardless of merit.
Can a paralegal handle my wrongful-dismissal case?
For claims of $50,000 or less, yes — a licensed paralegal can represent you in Small Claims Court under By-Law 4 of the Law Society of Ontario. For claims above $50,000, or where the matter requires the Superior Court of Justice (typical for senior or long-service employees), you need an employment lawyer. We refer out where appropriate.
What happens if I sign a release and then realize I was underpaid?
A signed release is generally binding and very difficult to set aside. Courts will only revisit a release in narrow circumstances — unconscionability, duress, mistake, or misrepresentation. The right time to get advice is before you sign, not after. Most employers will agree to a one- or two-week consideration period if you ask.
Contact Legal Assist
Legal Assist Paralegal Services — Licensed by the Law Society of Ontario. Serving London, Ontario and Southwestern Ontario. Call 226-272-5153 or email jeanfrancois@legalassist.london for a free consultation.