Let Go From Your Job? You May Be Owed More Than You Think

If you were fired or laid off and your employment contract does not clearly say how much notice or severance you are entitled to, the law may give you more than the minimum.

Many people assume they only get what employment standards laws require. That is not always true. In many cases, employees are entitled to additional compensation under common law.

How is severance decided?

Where there is no enforceable written contract limiting notice, the common law applies. Courts assess reasonable notice based on the well-established Bardal factors from the established caseBardal v. Globe & Mail Ltd., 1960 CanLII 294 (ON SC) that look at your personal situation, including:

Length of service: How long you worked for the employer

Age of the employee: Your age

Nature and seniority of the position: What kind of job you had

Availability of comparable employment: How hard it will be to find a similar job.

All of these factors are weighed together to decide how much notice or pay in lieu of notice you should receive. There is no one size fits all rule. Everything depends on your circumstances.

Who may receive more severance?

So, you may be entitled to enhanced severance if:

• You had long-term employment with the same employer
• Your position required specialized skills, training, or experience
• Your age may limit re-employment opportunities
• Comparable roles are scarce within your industry

Courts have consistently acknowledged that skilled tradespersons with substantial industry experience, long-term service with a single employer, and financial reliance on that employment may face significant challenges in securing comparable work. This is especially true where similar positions typically require many years of service and offer compensation levels that are not available in entry-level roles.

Additional factors—such as age-related obstacles, prevailing labour market conditions, and the timing of termination (for example, during an economic downturn or near the end of the calendar year)—may further lengthen the reasonable notice period.

In these situations, reasonable notice may significantly exceed statutory minimums and, depending on the overall circumstances, can extend into the high single-digit or even double-digit month range.

How much could you receive?

In some cases, severance can equal several months of pay. For some employees, it can be much more than what was first offered.

Important: Do Not Sign Too Quickly

If you were let go without notice or given a severance package, do not rush to accept it. Severance packages are often presented quickly and may reflect only an employer’s minimum obligations, not your full legal entitlement. Once a release is signed, your right to pursue additional compensation may be lost. Before accepting a severance package, it is worth getting legal advice. A brief legal review can help you understand whether the offer is fair and what you may be entitled to under the law.

Facing a job termination or severance offer can be stressful. A lawyer at Osuji & Smith Lawyers can help you understand your rights and options and provide guidance tailored to your individual situation.