Severance pay eligibility across Canada: What to know in every province
Severance pay eligibility across Canada: What to know in every province
Being let go from your job is hard enough — figuring out whether you're owed severance shouldn’t add to the stress. Severance pay is one of the most misunderstood parts of job loss in Canada, but it can have a major impact on your finances and your next steps.
It’s important to understand who qualifies for severance pay in Canada and how legislation can vary province by province. It's also important to recognize the signs that you might be heading toward a severance package.
What is severance pay?
Severance pay is compensation an employer may owe you when your job ends, especially if you’ve worked there for a long time. It’s separate from vacation pay or pay in lieu of notice.
In Canada, severance laws vary by province, and federally regulated workers follow a different set of rules altogether. Not everyone is entitled to severance, but even if it's not legally required, you may still be able to negotiate a severance package in Canada, so knowing the baseline is key.
Do federally regulated employees in Canada get severance?
If you work in a federally regulated sector — like banking, telecommunications, or air transportation — you're covered under the Canada Labour Code.
You’re entitled to:
2 weeks’ notice or pay in lieu
Severance pay of 2 days per year of service, with a minimum of 5 days
Example: If you worked 6 years at a federally regulated company, your minimum severance is 12 days' pay + your notice period.
Severance eligibility in Canada by province
Here’s a quick overview of severance pay rules in each province and territory. Remember, these are minimums — you can always try to negotiate more.
Severance and termination pay rules in Alberta
There is no formal severance law, but termination pay is required.
You’re owed:
1 week after 90 days
2 weeks after 2 years
Up to 8 weeks after 10 years
You can negotiate severance, especially if your contract is silent or you’re part of a larger layoff.
Severance and termination pay rules in British Columbia
In BC, there’s no specific severance pay, but employers must provide:
Notice or pay in lieu of notice
Amount depends on length of service:
1 week after 3 months
2 weeks after 12 months
3 weeks after 3 years (+1 week per year after that, to max 8 weeks)
No automatic severance beyond that, but it’s often negotiated.
Severance and termination pay rules in New Brunswick
New Brunswick does not mandate severance pay by law, but employers are required to provide written notice or pay in lieu of notice based on the length of service.
Employees are entitled to:
1 week after 6 months of employment
2 to 8 weeks of notice or pay in lieu, depending on tenure
While severance pay isn’t automatic, it’s often negotiated, especially for long-tenured employees or those affected by group terminations.
Severance and termination pay rules in Manitoba, Saskatchewan, Nova Scotia, Newfoundland, PEI
These provinces follow similar structures:
No mandatory severance pay
Notice or pay in lieu is required:
1 week after 3 months
2–8 weeks depending on service
Employees often negotiate severance offers if they're in senior roles or part of a large layoff.
Severance and termination pay rules in Ontario
Ontario is the only province with mandatory statutory severance pay — on top of termination notice — for some employees.
You qualify if:
You’ve worked 5+ years AND
Your employer has a payroll of $2.5 million+ or laid off 50+ employees
You get 1 week of severance per year worked, up to 26 weeks.
Example: 10 years at a qualifying company = 10 weeks of severance pay.
Severance and termination pay rules in Quebec
Quebec follows its own Labour Standards Act.
Employees are entitled to:
Written notice of 1–8 weeks based on tenure
No statutory severance pay, unless it’s specified in a collective agreement or contract
Exception: If laid off without cause and with no notice, you may be able to claim compensation under civil law.
Territories: Yukon, NWT, Nunavut
Employees in the territories are entitled to notice or pay in lieu but no statutory severance pay.
Layoffs may qualify for group termination rules, especially if 25+ employees are affected.
Common severance myths (and what’s true)
Myth 1: If I quit, I still get severance.
Fact: Generally, no. Severance is only paid when you're terminated without cause.
Myth 2: All employers have to offer severance.
Fact: Not always. Severance is only mandatory in certain provinces and situations. But that doesn’t mean you can’t ask for it.
Myth 3: I can’t negotiate severance if I’m not entitled.
Fact: You can always ask. Many employers offer severance to protect their reputation or maintain goodwill.
What if my employer doesn’t offer severance?
If you don’t qualify for mandatory severance but feel your termination was unfair, you still have options:
Review your contract for termination clauses
Speak with a lawyer to understand your rights
Ask for a “without prejudice” offer — it doesn’t affect your legal rights
Start with our sample severance negotiation emails.
Turning a layoff into your next opportunity
We hear you — getting laid off is no joke. It’s tough, it’s personal, and it can seriously shake your confidence. But it’s also a moment of reset. This could be the push you didn’t ask for but needed to realign your career with who you are now. It’s a chance to update your professional brand, sharpen your skills, and go after work that actually fits. You’re not starting from scratch — you’re starting from experience. And that’s powerful.
Career advice for job seekers in Canada
HireDiverse supports Canadian job seekers navigating layoffs, severance, and next steps. Whether you're reviewing your rights or building back better, we’re here with real talk and practical tools.
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