How many years do you need to be here to get severance?
6 replies (most recent on top)
I was turfed during a layoff, after 19 years at OT. They offered 24... I worked with an employment lawyer and received 38 weeks plus six months of benefits, and no tax withholding.
I am told that, in Canada/Ontario, the major factors are:
- Years of service
- Age
- Level of role/title (Sr. XYZ Manager etc.)
- Location (ability to find similar level/salary in your location)
Another thing about employment lawyers is that they take ~25% of the net gain.
Also, new Canadian laws allow companies to payout severance "in bulk" vs. continued payment (every two weeks like OT pays). My advice from a lawyer said NOT to do this, because your EI and CPP aren't continued. If OT continues to pay you on payroll, they continue your CPP and EI payments.
Lastly, if you are layed off in Canada, be sure to apply for EI as soon as you can. You CANNOT double-dip (collect EI while on continued payroll), you have to wait until your continued payroll period expires, BUT you need to apply as soon as you can. The CRA will ask when your severance period ends, but, essentially, you can start EI at the end of your severance period and start EI if you haven't found work already.
Good luck all
@b5 In my experience they delay, delay, delay to get you to settle. But they do come back, eventually, with better offers - still less than common law entitlements. You do indeed have to keep pushing and be patient to get a fair outcome.
@b3 And big companies like this are nasty when you bring in an employment lawyer. They will come back with "fine, you get nothing." That's when you need to hunker down and wait. At least that's my experience.
@b3 It's important to recognize that this varies wildly by country, so ymmv
In Canada, from Google:
Statutory Notice Period Entitlements:
Less than 3 months: No notice or pay required.
3 months to less than 1 year: 1 week of pay.
1 year to less than 3 years: 2 weeks of pay.
3 years to less than 4 years: 3 weeks of pay.
Each year starting from year 4: 1 additional week per completed year, up to a maximum of 8 weeks.
During this statutory notice period, your employer must also continue to pay your regular wages and maintain your benefits.
Separate Severance Pay: If you have been with your employer for 5 or more years you will also be entitled to statutory severance pay. This is calculated as 1 week of pay per completed year of service, up to a maximum of 26 weeks.
Note that you may be entitled to significantly higher payouts—up to 24 months' pay—under common law, depending on your age, position, and length of service. For example, as a 55 year old product manager with 10+ years experience, your common law entitlements would be at least 1 month per year of experience. But you have to fight to get this.
You can try representing yourself when fighting OT for better severance pay, or work with an employment lawyer. OT will always try to pay the very least in severance, it is up to you to fight for what is fair. The expectation is that most people will not fight and OT is banking on this. An employment lawyer will let you know what you are entitled to and whether it is worthwhile to pursue a better package. Do NOT roll over and blindly accept OT's offer.
If you’ve been with the company at least six months, you get paid for just the two week “non-working notice period,” as they like to call it when they cut you. It doesn’t get much better after that unless you’re an exec - a week of pay for every year of service up to 10 weeks (so 12 total with the initial two weeks).