If you were fired or laid off without cause, the first number you’ll usually hear is the ESA minimum. That’s a baseline — but it’s not always the full story. This page includes a severance pay calculator Ontario users can run in minutes to estimate (1) ESA termination pay + ESA severance, and (2) a common law notice range (often what drives negotiation).
Severance Calculator Ontario
How to use this Ontario severance pay calculator
- Enter your employment start and end dates (the tool estimates your length of service).
- Add your annual salary/wages and your average commission/bonus (last 2 years).
- Add your monthly benefits value (health/dental). If you’re unsure, a rough estimate still helps.
- Enter your age and select your job role/seniority.
- Confirm the legal disclaimer to view results.
You’ll see a side-by-side comparison that highlights the “gap” between an Ontario severance calculator result under the ESA versus an estimated common law range.
What the numbers mean
ESA minimums (the employer baseline)
The ESA side estimates:
- Termination pay (notice/pay in lieu) based on service length (capped at 8 weeks).
- Severance pay if you have 5+ years and the employer meets a severance trigger (payroll threshold or certain mass-termination situations), capped at 26 weeks.
- A simple add-on for vacation pay at the ESA minimum rate (4% or 6% depending on service).
- The estimated value of benefits during the statutory notice period.
Common law estimate (the negotiation range)
Common law notice isn’t a strict formula. Courts look at factors like length of service, age, and role/seniority (often called the Bardal factors). This tool uses a weighted model to produce a range, with:
- Extra weight for older employees (especially 55–60+)
- Extra weight for management/executive/specialized roles
- A short-tenure floor (courts can be generous even under 2 years)
- A typical cap of 24 months (exceptional cases can exceed)
Tax withholding note (Ontario)
If you receive a lump-sum payment, payroll withholding is often shown as 10% (≤$5,000), 20% ($5,001–$15,000), and 30% (>$15,000). This is withholding — your actual tax depends on your total income for the year.
Critical disclaimer (read this)
This severance pay Ontario calculator is for informational estimates only and is not legal advice. Your entitlement may be limited by a signed employment contract, your mitigation efforts, and the facts of your termination. Do not sign a release until you understand what you’re giving up.
FAQ
Is this an ESA severance pay calculator Ontario employers use?
It estimates what the ESA requires as a minimum, plus a separate common law range.
Does this cover bonuses and commissions?
Yes — it includes an average annual bonus/commission amount and pro-rates it into the notice period.
What if my contract limits notice?
Then common law may not apply (or may be reduced). Get the contract reviewed before signing anything.