Ontario Severance Pay Calculator (2026)
Direct answer: In Ontario your ESA minimum is termination notice of 1 week per year (max 8) plus, if you have 5+ years and a $2.5M+ employer, statutory severance of 1 week per year (max 26). Most employees can also claim larger common-law notice, often estimated at 2 to 4 weeks per year (capped near 24 months). Enter your salary and years above. This is data research, not legal advice.
How is severance pay calculated in Ontario?
ESA termination notice is 1 week per year up to 8 weeks. Separate statutory severance of 1 week per year (max 26) applies if you have 5+ years and your employer's payroll is $2.5M+. Common-law notice is usually larger.
Who qualifies for ESA severance pay in Ontario?
Employees with 5 or more years of service whose employer has a global payroll of at least $2.5 million, or who severed 50+ employees in six months. It is separate from and on top of termination notice.
What is the maximum severance in Ontario?
Statutory severance is capped at 26 weeks. But common-law reasonable notice can reach about 24 months of pay for long-service, older or senior employees — far above the ESA minimum.
Is the ESA minimum all I can get?
No. The ESA is a floor. Most dismissed Ontario employees can claim larger common-law notice through a settlement or court. The ESA minimum is often well below that.
Severance Pay Calculator (Canada, 2026)
Statutory figures are the legal minimum. Common-law reasonable notice is usually larger and is decided case-by-case by a court (age, service, position, job market) — this range is a rough estimate, not legal advice. Consult an employment lawyer.
How is Ontario severance pay calculated?
Ontario has two separate ESA entitlements — termination notice and statutory severance — plus common-law reasonable notice on top. The calculator works out all three.
- Termination notice: 1 week per year, max 8 weeks (after 3 months).
- Statutory severance: 1 week per year, max 26 — only if 5+ years and a $2.5M+ employer.
- Add them for the ESA minimum.
- Compare to the common-law estimate.
What is the ESA termination notice schedule?
Notice (or pay in lieu) rises with service. Compare provinces on our Canada-wide calculator or check your Ontario income tax.
| Years of service | Notice (weeks) |
|---|---|
| 3 months to 1 year | 1 |
| 1 to 3 years | 2 |
| 3 to 4 years | 3 |
| 4 to 5 years | 4 |
| 5 to 6 years | 5 |
| 6 to 7 years | 6 |
| 7 to 8 years | 7 |
| 8+ years | 8 |
How does Ontario statutory severance work?
Statutory severance under ESA section 64 is separate from termination notice. It applies only if the employee has five or more years of service AND the employer has a global payroll of at least $2.5 million (or severed 50 or more employees in a six-month period because of a business closing). The amount is one week of regular wages for each completed year of employment, plus a fraction for completed months in the final partial year, to a maximum of 26 weeks. So a 10-year employee of a large employer earning $1,000 a week receives $10,000 in statutory severance — on top of 8 weeks' notice.
Why is common-law severance usually higher?
When an Ontario employee is dismissed without cause and without an enforceable termination clause, the courts award common-law reasonable notice based on the Bardal factors — age, length of service, the character of the position, and how easily comparable work can be found. This is almost always more than the ESA minimum, often estimated at a few weeks to a month per year of service and capped near 24 months. Because it is judge-made and individual, the range here is only an estimate. An employee cannot both sue for wrongful dismissal and file an ESA claim for the same termination — they must choose one.
Should I sign the severance offer?
Many Ontario severance offers are close to the ESA minimum, which can be far below common-law entitlement for long-service or older workers. Before signing a release, it is usually worth having an employment lawyer review the offer. The calculator shows the gap between the statutory floor and a realistic common-law range so the conversation is informed.