AvRegs Canada

← Canada Labour Code

PART III — Standard Hours, Wages, Vacations and Holidays

DIVISION XI — Severance Pay

235Minimum rate history
(1)

An employer who terminates the employment of an employee who has completed twelve consecutive months of continuous employment by the employer shall, except where the termination is by way of dismissal for just cause, pay to the employee the greater of

(a)

two days wages at the employee’s regular rate of wages for his regular hours of work in respect of each completed year of employment that is within the term of the employee’s continuous employment by the employer, and

(b)

five days wages at the employee’s regular rate of wages for his regular hours of work.

Clarification

(1.1)

The employer’s obligation to pay and the employee’s right to receive the amount under subsection (1) apply whether or not the employee has a right to avail themselves of any procedure for redress under this Part, including under subsection 240(1), with respect to the termination of their employment.

Circumstances deemed to be termination and deemed not to be termination

(2)

For the purposes of this Division,

(a)

except where otherwise provided by regulation, an employer shall be deemed to have terminated the employment of an employee when the employer lays off that employee.

(b)

[Repealed, 2011, c. 24, s. 167]

R.S., 1985, c. L-2, s. 235; R.S., 1985, c. 32 (2nd Supp.), s. 41; 2011, c. 24, s. 167; 2024, c. 17, s. 250

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236Regulations history

The Governor in Council may make regulations for the purposes of this Division

(a)

prescribing circumstances in which a lay-off of an employee shall not be deemed to be a termination of the employee’s employment by his employer;

(b)

[Repealed, R.S., 1985, c. 9 (1st Supp.), s. 12]

(c)

establishing methods for determining whether severance benefits provided to an employee under a plan established by an employer are equivalent to any benefits required to be paid to the employee under this Division; and

(d)

defining the absences from employment that shall be deemed not to have interrupted continuity of employment and the expression “regular hours of work”.

R.S., 1985, c. L-2, s. 236; R.S., 1985, c. 9 (1st Supp.), s. 12

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237Application of section 189 history

Section 189 applies for the purposes of this Division.

R.S., c. 17(2nd Supp.), s. 16

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