Employment & HR

Severance Pay

A statutory payment owed on termination in some jurisdictions, separate from notice.

Varies by jurisdiction. Statutory severance as a separate entitlement does not exist in every province. Check the applicable statute.

In Ontario, for example, statutory severance pay is a distinct entitlement from termination notice and applies only where specific service-length and payroll thresholds are met. Other provinces structure this differently or not at all.

Why it matters: severance and notice are frequently conflated, which leads to underpayment on termination.

Related terms

Need this applied to your situation?

A definition can tell you what a term means. It cannot tell you what to do about your matter — that needs a licensed lawyer who knows the facts.

Legal information, not legal advice. Rules differ by province and change over time. A licensed lawyer must review your matter.

Editorial status: Lawkin Editorial — pending independent legal review.

Severance Pay — Canadian legal glossary | Lawkin — Lawkin