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Severance Pay Worksheet

Use this worksheet to calculate the amount of severance pay your employer may owe you. Employees who are covered by the ESA and who have at least five years employment with their employer are entitled to severance pay when their employment is severed, if

  • The employer has a payroll of more than $2.5 million, OR
  • The employee’s employment has been severed due to a permanent discontinuance of all or part of the employer’s business and the employee is one of 50 or more employees whose employment is being terminated within a six-month period.

For more information, call the Employment Standards Information Centre at 1-800-531-5551 or refer to the Your Guide to the ESA “Severance Pay” chapter on the Ministry of Labour website at www.labour.gov.on.ca/english/es/pubs/guide/severance.php or use the Severance Entitlement Tool at www.labour.gov.on.ca/english/es/tools/severance/index.php.

Calculating Severance Pay Owed
NOTE: “Regular wages” means wages other than overtime pay, public holiday pay, premium pay, vacation pay, termination pay and severance pay. If the amount of regular wages you were paid did not change each week, this amount is your “regular weekly wage” enter the amount in box “B” on the table below.
Dates of 12 Weeks Before Severance Regular Wages Earned During Week
Start Date
Day/Month/Year
End Date
Day/Month/Year
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
(A) Total regular wages earned during 12 weeks before severance
(B) Regular weekly wage, or if you do not have a regular weekly wage
Total regular wages (A) divided by number of weeks actually worked in the last 12 weeks before severance
(C) Number of completed years of employment
(D) Number of completed months of employment divided by 12 for a year that is not completed
(E) Number of weeks of severance pay due (C) + (D) =
(F) Number of weeks of severance pay due (E) × regular weekly wage (B)
Total Amount Owed

This Worksheet is provided for your information and convenience only. This is not a claim form.
For information on filing a claim, call the Employment Standards Centre at 1-800-531-5551 or visit www.labour.gov.on.ca

Example

Hourly Employee, No Regular Work Week
An employee worked for an employer for 6 years and 3 months. His hourly wage was $11.00/hour in the last 12 weeks before his employment was severed. He does not work the same number of hours every week, but the work week runs from Sunday to Saturday. The date of severance is October 29, 2010.

Sample Calculation Based On Example Above
Note: “OT” = Overtime “PH” = Public Holiday
Dates of 12 Weeks Before Severance Regular Wages Earned During Week
Start Date
Day/Month/Year
End Date
Day/Month/Year
1. 8 / August / 2010 14 / August / 2010 Worked 44 hours: $484.00
2. 15 / August / 2010 21 / August / 2010 Worked 48 hours: 44 × $10.00 = $484.00 (OT not Included)
3. 22 / August / 2010 27 / August / 2010 Worked 40 hours: $440.00
4. 29 / August / 2010 4 / September / 2010 Worked 40 hours: $440.00
5. 5 / September / 2010 11 / September / 2010 Worked 32 hours: $352.00 (PH pay September 6 not included)
6. 12 / September / 2010 18 / September / 2010 Worked 40 hours: $440.00
7. 19 / September / 2010 25 / September / 2010 Worked 40 hours: $440.00
8. 26 / September / 2010 2 / October / 2010 On Vacation (Vacation Pay not included)
9. 3 / October / 2010 9 / October / 2010 On Vacation (Vacation Pay not included)
10. 10 / October / 2010 16 / October / 2010 Worked 32 hours: $352.00 (PH pay October 8 not included)
11. 17 / October / 2010 23 / October / 2010 Worked 44 hours: $484.00
12. 24 / October / 2010 30 / October / 2010 Worked 44 hours: $484.00
(A) Total regular wages earned during 12 weeks before severance $4,400.00
(B) Regular weekly wage, or if you do not have a regular weekly wage Total regular wages (A) divided by number of weeks actually worked in the last 12 weeks before severance $4000.00 divided by 10 (weeks on vacation are not included in the calculation of average) = $440.00
(C) Number of completed years of employment 6
(D) Number of completed months of employment divided by 12 for a year that is not completed 3 Divided by 12 = 0.25
(E) Number of weeks of severance pay due (C) + (D) = 6.25
(F) Number of weeks of severance pay due (E) × regular weekly wage (B) 6.25 × $440.00 = $2,750.00
Total Amount Owed $2,750.00

This information is provided as a public service. Although we endeavour to ensure that the information is as current and accurate as possible, errors do occasionally occur. Therefore, we cannot guarantee the accuracy of the information. Readers should, where possible, verify the information before acting on it.

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