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Toronto Severance Pay Lawyers Your Severance Offer Is Probably Too Low.
Our Toronto severance pay lawyers at 55 University Avenue calculate your true ESA termination and severance pay entitlements, your common law reasonable notice, advise on whether your package is fair, and negotiate or litigate when employers underpay. Most employees who get a lawyer review their package receive significantly more.
Severance Pay TorontoTermination Package ReviewESA SeveranceCommon Law NoticePackage NegotiationFree Consultation
55 University Avenue, Toronto | Severance Pay | ESA & Common Law Entitlements | Package Review & Negotiation | Free Consultations
Toronto Severance Pay Lawyers, key facts
8weeks ESA max
The ESA termination pay maximum is 8 weeks, but ESA severance pay adds up to 26 additional weeks for qualifying employees
26weeks ESA severance
Employees with 5+ years of service at employers with $2.5M+ payroll are entitled to ESA severance pay on top of termination pay
2x–4xtypical gap
Most professional employees' common law entitlement is 2 to 4 times what their employer initially offered
Freeconsultation
Free review of your severance package. We tell you exactly what you should have been offered
Severance Pay
Severance Pay in Ontario, Two Separate Entitlements, Both Frequently Underpaid
When most Ontarians say "severance pay," they mean the entire termination package. The money an employer pays when ending the employment relationship. But under Ontario law, there are actually two separate statutory entitlements that can exist alongside each other: termination pay and severance pay. And above and beyond both, there is the common law reasonable notice entitlement.
Termination pay under the ESA is based on years of service, up to a maximum of 8 weeks for employees with 8 or more years. It is payable to virtually all employees on termination without cause. Severance pay under the ESA is a separate, additional entitlement available to employees with 5 or more years of service whose employer has a payroll of $2.5 million or more, or whose position is eliminated as part of a mass termination, up to 26 weeks.
Above these statutory minimums sits common law reasonable notice. The amount courts will award a dismissed employee who was not given adequate notice. For a 45-year-old manager with 12 years of service, that could easily be 14 to 18 months. For a senior executive, it could be more. The gap between what employers offer and what employees are legally owed is often enormous.
Our Toronto severance pay lawyers review hundreds of termination packages every year. We calculate the correct ESA entitlements (many employers miscalculate these), the common law reasonable notice based on the Bardal factors, and the value of any benefits and bonus entitlements during the notice period. We tell you exactly what you should have been paid, and we pursue it.
Ontario Courts
Toronto Employment Courts
We appear in Ontario employment courts regularly. Here are the courts relevant to your matter.
Ontario Superior Court of Justice, Toronto
361 University Ave, Toronto, ON M5G 1T3
5 min walk from our office
Significant severance pay claims are brought in Ontario Superior Court. Most resolve before trial, at mediation or through negotiated settlement, but effective litigation posture requires court proceedings in appropriate cases.
ESA complaints about unpaid termination or severance pay can also be brought to the Ministry of Labour's Employment Standards Branch, a free enforcement mechanism available alongside civil court claims.
ESA Termination PayESA Severance PayEmployment Standards ComplaintsMinistry of Labour
We advise Toronto employees at every stage, from reviewing the package on day one of termination through to court proceedings.
Severance Package Review, Toronto
Termination Package Analysis, Toronto
We review every component of your termination package: the termination letter, the Release and Full and Final Settlement, ESA calculations (which are frequently incorrect), notice period and PILON calculations, benefit continuation, bonus and commission treatment during the notice period, and any restrictive covenants. We give you a clear picture of what you were owed versus what you were offered, and the gap between them.
Termination letter analysis
ESA calculation check
Common law notice calculation
Benefits during notice period
Bonus and commission entitlements
Release clause review
COBRA / benefit continuation
Restrictive covenant analysis
Severance Negotiation, Toronto
Negotiate Your Package, Toronto
Most Toronto severance negotiations are resolved without litigation. Once we have calculated your true entitlement and identified the deficiencies in the initial offer, we approach the employer's counsel with a demand. Employers who know they are facing a well-prepared wrongful dismissal claim typically settle, because litigation is expensive for them too. We negotiate with the specific goal of maximizing your net outcome after legal fees.
Demand letter preparation
Employer counsel negotiation
Counteroffer strategy
Benefits and bonus negotiation
Tax-efficient structuring
Settlement agreement review
Bonus and Commission Claims, Toronto
Lost Bonus and Commission During Notice, Toronto
One of the most consistently underpaid components of severance in Toronto is the loss of bonus and commission during the notice period. Ontario courts have consistently held that employees are entitled to bonuses and commissions they would have earned during the reasonable notice period, even if the employment agreement says otherwise in some cases. We analyze your bonus plan, commission structure, and recent earnings to quantify this entitlement accurately.
Bonus entitlement during notice
Discretionary bonus analysis
Commission calculation
Stock option and RSU entitlements
Incentive plan review
Comparator year analysis
Common Questions
Frequently Asked Questions
What is the difference between termination pay and severance pay in Ontario?
Termination pay is the basic ESA entitlement, a minimum notice period or pay in lieu, based on years of service up to 8 weeks. Severance pay is a separate, additional ESA entitlement for qualifying employees (5+ years of service at employers with $2.5M+ payroll) of up to 26 weeks. Both can be owed simultaneously, and both are separate from common law reasonable notice.
My employer gave me working notice instead of pay in lieu. Is that valid?
Yes, an employer can provide working notice instead of pay. However, if the conditions during working notice make it unreasonable to expect the employee to remain, for example, being demoted, excluded from meetings, or treated as effectively terminated, there may be a constructive dismissal argument. If you are in working notice and your conditions have significantly changed, contact us.
Am I entitled to my bonus during the notice period?
Likely yes. Ontario courts have consistently held that employees are entitled to the bonuses they would have earned had they worked during the notice period, provided the employment relationship was still ongoing during that period. Contractual language purporting to eliminate bonus entitlement on termination is often unenforceable. We analyze bonus plans carefully on every file.
What if my employer is trying to make me sign quickly?
Do not sign a release under time pressure. There is no legitimate reason to require an employee to sign a release within 24 or 48 hours of termination. The pressure to sign quickly is a negotiating tactic, not a legal requirement. You have time to consult a lawyer. Call us first.
Does my length of service affect my severance entitlement?
Yes, significantly. Length of service is one of the four Bardal factors for common law notice and determines both termination pay and severance pay eligibility under the ESA. Long-service employees have the most to gain from legal review of their packages, because the gap between ESA minimums and common law entitlement is largest for them.
Can I still claim my benefits during the severance period?
Under the common law, you are entitled to have your benefits continue during the reasonable notice period, including benefit plan premiums, car allowances, and other perquisites. Many employers stop benefits on the last day of employment. This is a component of your claim that we quantify as part of the total package review.
Book a Consultation
Toronto Severance Pay Lawyers, Free Initial Consultation
Our Toronto employment lawyers offer free initial consultations. Do not sign your severance package before speaking with us, call today.
Lexaltico LLP
Downtown Toronto
55 University Ave, Suite 1100 Toronto, ON M5J 2H7
Mississauga
90 Matheson Blvd W, Suite 101, Mississauga, ON L5R 3R3
North York
4750 Yonge St, Suite 600, North York, ON M2N 0J6
Oakville
277 Lakeshore Rd E, Suite 408, Oakville, ON L6J 1H9
Every case is unique. These anonymized examples illustrate the types of results our team has achieved. Past outcomes do not guarantee future results.
Wrongful Dismissal
Wrongful Dismissal — 24-Month Notice Period
Negotiated $285,000 severance for senior manager after 18 years
A long-tenured senior manager was terminated without cause with an offer of just 8 weeks' pay. Our analysis of the Bardal factors — age (54), tenure (18 years), character of employment, and re-employment prospects — supported a 22-24 month reasonable notice period. Through aggressive pre-litigation negotiation, we secured 22 months' compensation plus benefits continuation.
$285K Settlement
Constructive Dismissal
Constructive Dismissal — Toxic Workplace
Court awarded 20 months' pay plus $50,000 in damages
Our client endured systematic role reduction, reporting structure changes, and a hostile work environment. We established constructive dismissal under the framework in Potter v. New Brunswick, proving fundamental breach of the employment contract. The court awarded full reasonable notice plus moral and punitive damages.
“I had the absolute pleasure of working separately with two lawyers from Lexaltico — Pooja Lassi and Matthew Ram — on different matters. The level of professionalism, expertise, and care demonstrated by each of them was consistently exceptional. They do not simply service your needs — they take the time to thoroughly understand your situation and proactively problem-solve.”
— SJR
★★★★★
“I had the absolute pleasure of working separately with two lawyers from Lexaltico — Pooja Lassi and Matthew Ram — on different matters. The level of professionalism, expertise, and care demonstrated by each of them was consistently exceptional. They do not simply service your needs — they take the time to thoroughly understand your situation and proactively problem-solve.”
— SJR
Book a Consultation
Toronto Severance Pay Lawyers, Free Initial Consultation
Our Toronto employment lawyers offer free initial consultations. Do not sign your severance package before speaking with us, call today.
Lexaltico LLP
Downtown Toronto
55 University Ave, Suite 1100 Toronto, ON M5J 2H7
Mississauga
90 Matheson Blvd W, Suite 101, Mississauga, ON L5R 3R3
North York
4750 Yonge St, Suite 600, North York, ON M2N 0J6
Oakville
277 Lakeshore Rd E, Suite 408, Oakville, ON L6J 1H9
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Immigration consulting services are provided by Regulated Canadian Immigration Consultants (RCICs) in good standing with the College of Immigration and Citizenship Consultants (CICC) under the College of Immigration and Citizenship Consultants Act, S.C. 2019, c. 29, s. 292.
Estimator & Calculator Tools
The Severance Estimator and Estate Dispute Evaluator are for informational purposes only. Results are estimates and do not account for specific contractual terms, statutory provisions, or judicial discretion. These tools do not create a solicitor-client relationship. Always seek independent legal advice before making any legal decision.
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Free Consultation
Most matters qualify for a complimentary 30-minute virtual consultation. For a small number of complex or multi-issue files, a nominal fee may apply — this will always be disclosed to you upfront before any consultation takes place and will be credited in full toward your fees if you retain Lexaltico LLP. The complimentary consultation constitutes a general introductory discussion only and does not constitute legal advice. It does not create a solicitor-client relationship, and no duty of confidentiality arises until such a relationship has been formally confirmed in writing.
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Limitation Periods
Failure to commence proceedings within applicable limitation periods may permanently bar your claim. In Ontario, the general limitation period is two (2) years from discovery under the Limitations Act, 2002, S.O. 2002, c. 24, Sched. B. Seek legal advice promptly.
Past Results & Testimonials
Any client testimonials, case results, recoveries or outcomes referred to on this website are illustrative only. Past results are not necessarily indicative of future outcomes. Each legal matter turns on its own facts; the outcome of any particular matter cannot be guaranteed and depends on circumstances unique to that matter. No statement on this website should be read as a promise or prediction of any particular result.