The Employment Standards Act minimums
After three months of employment, an employee whose job ends without cause is entitled to written notice, or pay instead of notice: one week for each completed year of service, up to eight weeks. Benefits continue through the notice period. Severance pay under the Act is a separate amount. It applies when the employee has five or more years of service and the employer has an Ontario payroll of at least $2.5 million, or the termination is part of a permanent closure affecting 50 or more employees within six months. It is one week of regular wages for each year of service, prorated for part years, up to 26 weeks. A contract cannot reduce these minimums.
Common-law reasonable notice
Where a contract has no termination clause, or the clause does not comply with the Act, courts assess "reasonable notice" using factors such as the person's age, length of service, the kind of position and the availability of similar work. It is usually expressed in months rather than weeks, and it includes the value of pay and benefits over that period. Whether a termination clause holds is one of the first questions in a severance review; Ontario courts have found many clauses unenforceable because of how they were written. Amounts vary widely, and no guide can say what a particular situation is worth.
The offer letter and the release
Employers often offer a package above the minimums in exchange for a signed release, which gives up the right to claim more. The deadline on the letter is set by the employer; the time limit for a court claim is generally two years, and a claim under the Act to the Ministry of Labour also has a two-year limit. Many people ask for time to have the letter reviewed, and employers often agree. The minimums under the Act are owed whether or not a release is signed.
New work during the notice period
Income from a new job during the notice period can reduce a common-law claim, but not the minimums under the Act. How a new job, a pension or disability benefits interact with a package is a frequent question in a review.
How Lutfi Law helps
We read the contract and the letter, explain which of the three kinds of notice applies, and set out the options in plain language. The first consultation is free for employment and human rights matters.
Related: Wrongful dismissal in Ontario (guide) · Terminated in Ontario? 5 things to do before you sign (checklist) · Employment law
Last reviewed: October 2026 · Lutfi Law