Canada

How much severance pay am I entitled to if I am laid off after many years?

12 months
Minimum service
2 days/year
Severance rate
Federally regul
Applies to
Wages earned
Basis of calculation
The Short Answer

If you're federally regulated and have at least 12 months of continuous service, you’re entitled to 2 days’ wages for each year of service as severance pay.

What the Law Says

The Canada Labour Code sets the minimum severance entitlement for employees in federally regulated industries (e.g., banking, telecommunications, interprovincial transport). It applies only if you’ve worked continuously for at least 12 months.

Severance pay is not automatic for all Canadian workers — it depends on whether your employer falls under federal or provincial jurisdiction. Provincial employment standards laws apply to most workers, but the Canada Labour Code governs federally regulated employers.

Under section 235, eligible employees receive severance calculated strictly by years of continuous service — no cap or minimum number of years beyond the 12-month threshold.

Statutory Text

Employee with 12 months' continuous service is entitled to severance pay equal to 2 days' wages per year of service.

— Canada Labour Code, s. 235 — Severance pay

What to Do

1

Confirm whether your employer is federally regulated (e.g., banks, airlines, telecom companies, federal Crown corporations).

2

Calculate your total years of continuous service (including approved leaves like maternity or sick leave).

3

Determine your average daily wage (based on your regular earnings over the last 4 weeks before termination).

4

Multiply your years of service by 2 to get total severance days, then multiply by your daily wage.

5

If your employer refuses payment, file a complaint with the Labour Program of Employment and Social Development Canada within 6 months.

Sources

statuteCanada Labour Code, s. 235 — Severance pay

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Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.