What is severance pay?
Severance pay refers to the amount of money your employer must give you, the employee, when your employment is terminated. This is often referred to as a "severance package", as it may include several aspects of your compensation.
What is considered sufficient severance pay will vary from situation to situation, and is dependent on a variety of factors.
Example: Today you were notified by your employer that your employment is being terminated, effective immediately. Instead of giving you reasonable notice, your employer has opted to pay you 3 months salary (severance pay).
Our lawyers will determine if 3 months pay is reasonable based on a variety of factors.
Severance packages entitles you to all aspects of your compensation, including:
- Regular salary, commissions, and bonuses
- Pension contributions
- RRSP contributions
- Medical and dental benefits
- Fringe benefits (allowances for vehicles, cellphones, gym memberships, etc.)
- Vacation pay
It is important for you to understand that most employees are entitled to substantially more severance pay than found under the Alberta Employment Standards Code or the BC Employment Standards Act.
Example: Your employment is terminated after 2.5 years of service. Your employer has offered to give you 2 weeks’ of your regular salary as is required under the Alberta Employment Standards Code. This is a wrongful dismissal. In fact, you are entitled to additional severance pay under what is called the common law.
Find out how much severance pay you are entitled to
As each case is unique, our lawyers will assess yours to determine the appropriate amount of severance you are entitled to.
Do not assume that you are being given fair severance pay. Taylor Janis looks forward to having a confidential and candid discussion with you about your severance pay rights.
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