When you’re starting to drown between employee concerns, payroll duties and helping your CEO -- HR Insider is there to help get the logistical work out of the way.
Need a policy because of a recent regulatory change? We’ve got it for you. Need some quick training on a specific HR topic? We’ve got it for you. HR Insider provides the resources you need to craft, implement and monitor policies with confidence. Our team of experts (which includes lawyers, analysts and HR professionals) keep track of complex legislation, pending changes, new interpretations and evolving case law to provide you with the policies and procedures to keep you ahead of problems. FIND OUT MORE...
The $2.5M Payroll Threshold Includes Payrolls Outside Ontario, According To The Ontario Superior Court

Severance: The Basics
There are two types of statutorily mandated pay that an employer may be required to provide an employee upon termination:(1) termination pay and (2) severance pay. Both termination and severance pay are minimum employment entitlements, they cannot be contracted out of, and they must be paid and calculated separately pursuant to the mechanisms provided by theEmployment Standards Act, 20001 (the "ESA").

The ESA defines what constitutes severance and who is entitled to severance.2 In the case of individual termination, an employer must provide severance pay to an employee who has been employed for at least five years, and the employer has a payroll of $2.5 million or more.3

The payroll threshold is met if either (a) the product of 13 multiplied by the total wages of all employees during the preceding four-week period ending on the last day of the last pay period prior to the severance or (b) the total wages of all employees in the penultimate or last fiscal year pr...

Save with annual purchase!
Try It Out!
Take a Spin
Take a Spin
Not ready to buy yet? Take a trial!
Get full access to HR Insider to make sure it's the right fit for your organization!
Start My TrialStart My Trial
For large businesses with multiple locations across the globe.
Contact UsContact Us



Already have an account?