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Does a company have to pay me severance (laid off due to not enough work) if they are a small company?


Yes, even small companies have to pay their employees full severance when they are terminated. The legal name for severance is "pay in lieu of notice of termination". What confuses a lot of employees is that the Ontario Employment Standards Act (ESA)provides that employees of big companies who have 5 or more years of service are owed severance pay on top of termination pay when they are terminated. Full severance refers to something different than severance pay under the ESA. to find out how much severance you may be owed, visit


Lluc Cerda
The Lawyers at Samfiru Tumarkin LLP
Direct Tel (Toll Free): 1-855-821-5900     Email:     Web:
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