Severance Packages & Pay

STACEY REGINALD BALL

82 SCOLLARD STREET TORONTO, ON, M5R 1G2

Call:(416) 921 7997 Ext. 225     Email:srball@82scollard.com

STACEY REGINALD BALL

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“Severance” at common law is tied to the amount of termination notice an employee should be given

EMPLOYMENT STANDARDS ACT

How To Maximize Your Severance Pay?

The severance package that an employer should pay to a terminated employee depends on a number of factors. Relevant factors include, among others: length of service, age, reason for dismissal, the position the employee held within the company, compensation, whether the employee was actively recruited and the general economy. Employers will often present a terminated employee with a severance package and request that they sign the offer quickly. However, employees should carefully review a severance package offer, ideally with legal counsel, prior to signing. An experienced lawyer will be able to inform you of your entitlements under the law, and provide advice on how to maximize your severance pay. Most employees are offered much less severance than they are owed.

Severance exists in provincial legislation in Ontario, in the form of the Employment Standards Act, but common law remedies tend to be much greater for most employees in Ontario. To obtain a common law remedy it is normally best to seek legal counsel. There is no easy calculation to determine the amount of severance that an employee will receive at common law. The factors mentioned above will be weighed and examined in the particular circumstances of each case. That being said, the normal maximum range for common law reasonable notice is between 18 and 24 months. Further, courts in Ontario have found damages for breach of the implied obligation of good faith and fair dealing over and above the 24-month base notice period.

​Terminated Employee

It should be noted that the term “severance package” is typically used to describe the total payout that a terminated employee will receive. However, “severance pay” is actually a defined term in the Employment Standards Act. It compensates employees for losses (like loss of seniority) that happen when a long-term employee is terminated. In order to qualify for severance pay an employer must have worked for the employer for at least five years and the employer must either have a payroll of $2.5 million or have severed 50+ employees in a six-month period as a result of a business closure.

Relevant cases dealing with severance packages and pay include Wallace v. United Grain Growers Ltd. (1997), 152 D.L.R. (4th) 1, (1997) 3 S.C.R. 701; Suttie v. Metro Transit Operating Co., (1983), 1 C.C.E.L. 123; and Kreager v. Davidson (1992), 44 C.C.E.L. 261. Please note that the above information does not constitute legal advice. It is general information about the law. If you require legal advice and assistance in an employment matter, please contact the experts at Ball Professional Corporation.

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LEARNING CENTER

  • “Equal Pay for Equal Work” in Ontario

    September 7, 2019
    Stacey R. Ball

    You may have heard the phrase “equal pay for equal work”. In Ontario, this means that an employer cannot pay one employee less than another on the basis of sex when three conditions are met:(1) They are performing substantially the same kind of work in the same establishment,(2) The work requires basically the same skill, effort and responsibility, and(3)...

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  • Calculating Severance Pay in Ontario 

    September 7, 2019
    Stacey R. Ball

    Being terminated from work is a stressful experience for anybody. Emotions run high as you have to figure out your next steps, and money is obviously a primary concern. Your rights to severance pay and termination pay will depend on the circumstances of your termination.The first thing you should do, before signing anything, is contact a lawyer to review...

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  • Severance Pay: What is it and Who gets it?

    November 12, 2019
    Stacey R. Ball

    What is Severance Pay? In Ontario, the term “severance pay” could refer to two different things: Common law severance pay, or statutory severance pay.  Common law severance pay is payment in lieu of reasonable notice.  Statutory severance pay is one week’s pay for every year of service.  Common law entitlements to severance pay are usually greater than statutory entitlements. Stacey...

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  • Katz et al v Clarke: The Duty to Accommodate,...

    November 15, 2019
    Stacey R. Ball

    The Ontario Divisional Court has upheld that the employer may terminate an employee with a disability when there is undisputed medical evidence that an employee will be unable to fulfill the essential obligations of the employment relationship for the foreseeable future and there are no accommodations that would allow the employee to work.

    Learn More

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Canadian Employment Law

Mr. Ball is author of the authoritative and definitive text Canadian Employment Law - published by Canada Law Book (a division of Thomson Reuters). The text is used and cited by lawyers, law schools and judges across Canada.

To order Mr. Ball's Canadian Employment Law please visit the Carswell Store by clicking here or on the button below.

CLIENT REVIEWS

Google Reviews

Steven Wang
Steven Wang
19:58 18 Mar 19
Stacey was the third lawyer that I had hired to represent me, after the previous two didn't achieve anything for me. Stacey is very different. He is not only the author of Canadian Employment Law with profound knowledge and experience, he is also the most efficient one, direct to the point. He is the toughest one, well known by HR people, and he takes care of his client all by himself. There is no junior lawyers under him. That's the big difference comparing with other big employment law firms on Google, where I could only meet with a young lawyer with little experience. After he spoke with me for 45 minutes, he found the best way to break through. He didn't need to ask for a lot of document and he didn't bill hours to review them. His fee structure is aligned with his client's best interest. My problem was solved very quickly with a great result, and I only have to meet with him twice and exchange some emails. He's not just a tough fighter and negotiator, he got great strategy to make a deal. He answered my emails during the holidays. He comes in the office very early, and we had a conference call at 7am in the morning when we need to make a quick decision. To me, he is the best employment lawyer, a patient teacher and a friend. I strongly recommend him to those who need help.
Aiden Nix
Aiden Nix
01:13 06 Apr 19
Stacey was super helpful and increased my settlement a significant amount. He is very busy so you have to chase him down a bit but that is minor issue compared to all of the positives. Overall if you need a good labour lawyer then talk to him right away. He is THE lawyer to go to in Ontario!Thanks Stacey!
Sergei R
Sergei R
05:01 06 Dec 18
My experience with Stacey R. Ball was very positive. His fees are reasonable and value I received for the money was outstanding. Luckily, after his advice my situation was resolved almost amicably. You will not believe how reasonable some people can become after they start suspecting you have a good lawyer. An ounce of prevention is worth a pound of cure. If you suspect you might need a lawyer in the future because of some developing situation at work, I highly recommend you wait no more and talk to Stacey.
Danny T
Danny T
18:34 26 Feb 19
Stacey has recently represented me. He’s patient, but to the point which I can appreciate. No fluff. He worked quickly and even responded during his holidays. Definitely highly recommended.
Alexa Arsenault
Alexa Arsenault
19:36 01 Nov 18
If I could give Stacey Ball 30 stars I would! Stacey was right on the “ball” when it came to my legal matter. I called his office and his efficient staff scheduled me for an appointment the next day. He’s a great listener and comes to the point quickly, confidently, and succinctly. He explained best and worst case scenarios and dealt with my matter without delay. He was successful in concluding my legal matter to my satisfaction and met all my expectations. I highly recommend Stacey for all your legal matters.Alexa
Alex McMillan
Alex McMillan
18:05 21 Apr 19
Mr Ball represented me in a wrongful dismissal case. It was quite evident from my initial consultation until the conclusion of my settlement. Mr. Ball mirrored professionalism, empathy and above all confidence. Mr Ball reviewed my case and informed me what I was entitled to and what to expect at time of settlement. I was represented diligently right up to the conclusion of my settlement. He was able to negotiate an amount that was above my expectations. I would highly recommend Mr. Ball to anyone in need of assistance in any type of employment situations. In conclusion that one of the main things that impressed me most was that he at all times puts his clients FIRST.
Daphne Rodrigues
Daphne Rodrigues
23:54 22 May 19
Stacey was my second lawyer I retained after my original lawyer felt that he would be better suited to deal with my difficult employment matter. Stacey was very direct, efficient and respectful of my time. He was tenacious in negotiations and challenged/invalidated all points the other lawyer argued. I would not have achieved my outcome without Stacey. Thank you!Daphne Scott
Kate Miller
Kate Miller
15:35 23 May 19
Stacey gave me good advice on my first consult. Super professional and competent. If I ever need employment lawyer again I would definitely come back to Stacey!
francesca V
francesca V
08:33 24 Jun 19
Stacey not only provided expert legal guidance on my workplace harassment case, but was also extremely supportive during this difficult process. I wholeheartedly recommend him to anyone facing a similar situation. Thank you Stacey.
Charlie Russo
Charlie Russo
03:03 01 Jul 19
Stacey Ball was very helpful with my employment situation, from start to finish. He answered all my questions and concerns dealing with my settlement promptly and easily explained everything. Thank you. 5 stars.
Nurissa Kanji
Nurissa Kanji
09:47 22 Jul 19
I want to thank Stacey Ball and the staff at Ball Professional Corporation. Mr.Ball's professionalism, friendliness and empathy were evident at our first meeting. We would not hesitate to recommend Stacey Ball and his team for their expertise in employment law.
dave buckley
dave buckley
03:27 31 Jul 19
Stacey Ball was a huge help for me from start to finish in a contract negotiation, and was able to very quickly identify issues and advise me on next steps. He was understanding of my situation and provided specific advice on a broad range of clauses in my contract. I would 100% consult with him again based on my experience.
Jhonattan V
Jhonattan V
04:31 02 Aug 19
After ending employment with my employer of 9 years due to actions that I felt were steps of constructive dismissal, I contacted Mr Ball to determine my employment rights. Through the whole process from beginning until conclusion, I found Stacey to be very professional and knowledgeable and would recommend him and his team as your representatives for employment law matters.
Cole Carr
Cole Carr
03:04 04 Aug 19
I met with Stacey Ball this morning for a consultation. He was incredibly generous with his advice and support in a consultation I needed. I highly recommend contacting him, even if you are unsure you will require his services - he will help you evaluate the situation and whether you need his services.
Katy M. Smith
Katy M. Smith
01:18 05 Aug 19
I recommend Stacey Ball without hesitation. I was wrongfully dismissed and Stacey worked efficiently and communicated regularly to get a great settlement. He helped make a bad situation better – you want a lawyer like Stacey on your side!
Nurissa Kanji
Nurissa Kanji
09:47 22 Jul 19
I want to thank Stacey Ball and the staff at Ball Professional Corporation. Mr.Ball's professionalism, friendliness and empathy were evident at our first meeting. We would not hesitate to recommend Stacey Ball and his team for their expertise in employment law.
Sheeba Bonning
Sheeba Bonning
15:47 28 Oct 19
I would highly recommend Stacey Ball any time! Stacey accurately pinpointed the challenges of our situation and gave solid advice right from the beginning. When things got confusing for me, he took the time to explain them in lay terms so I could make informed decisions. A big thank you to Stacey ball and his team for helping me with a stressful situation and for always being there to smooth things over. We were even able to have a laugh or two and he definitely brings a human touch to legal matters which can be super uncomfortable for "regular" people that don't deal with legalese every day!
Jacqueline O'Flanagan
Jacqueline O'Flanagan
19:57 29 Oct 19
I would strongly recommend Stacey and his services for any employment related legal issues. His academic and professional experience provide a unique approach to strategizing over a case with his clients best interest in mind, and builds the case based on facts. He is an advocate for employees who have been wronged and his work with the supreme court demonstrates his commitment to changing the system for the better.
Lionel K
Lionel K
20:40 30 Oct 19
A few months ago, I was blindsided by my three partners who had decided to buy me out, at a fraction of the original investment contribution that I made when I joined the company. I decided to hire Stacey after interviewing him at his office. I knew then and there that he would make put my former partners in their place. Thank fully, I was right and Stacey took care of the matter in mediation, getting me 100% of what I was entitled to. The man is a legend in employment law and has the credentials to prove it, after all, he wrote the book on employment law! Thank you Stacey, appreciate all you've done. Best, LK.
Christine L
Christine L
02:11 15 Nov 19
I had spoken with three lawyers before I met with Stacey Ball. What I liked about our meeting was that Mr. Ball provided answers to my questions and made me feel that he had my best interests in mind. I was informed of a settlement amount I would be entitled to receive and he worked at getting it. You will get a chance to get some sleep knowing that your case will be resolved promptly and that your rights are being looked after. You will find his fees are competitive but fair as he evaluates each situation separately. If you want to know what you rights are, want results, without wasting time, look no further. My case was handled efficiently and I would recommend his services to anyone that asks. A big thank you Stacey Ball for your services.
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