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I run a small company with less than $250k global payroll. Is a terminated employee with 15 years entitled to severance?

The employee would be entitled to notice or payment in lieu of notice of their termination in accordance with their employment agreement, or if nothing limits in their employment agreement then in accordance with the common law (court made decisions). We would have to review the term and conditions of this employee's employment, please reach out for a consultation.

With respect to Severance Pay under the Employment Standards Act, 2000, if you are a provincially regulated employer, with less than a $250K payroll the employee would not be entitled to statutory Severance Pay. An employee qualifies for severance pay if their employment is severed and:
1.they have worked for the employer for five or more years (including all the time spent by the employee in employment with the employer, whether continuous or not and whether active or not); and
2. their employer has a global payroll of at least $2.5 million;
3.severed the employment of 50 or more employees in a six-month period because all or part of the business permanently closed.
Lior Samfiru
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