Can Employees on Probation Get Severance Pay?

Probation Get Severance Pay

Whether you saw it coming or were caught off guard, losing your job is a stressful experience. Often, there’s no time to prepare, and you must quickly figure out where your next paycheck will be coming from and how you’ll cover living expenses in the meantime. In some cases, an employer in Ontario will provide you with a package that includes severance pay Ontario and termination pay when you’re let go. If you’re currently on probation, however, you may be wondering if you’ll qualify for severance pay in the event of your dismissal.

The answer is yes, but only if your employer follows their own company policies regarding probationary periods and performance reviews. Probationary periods are not statutorily defined in Ontario, and employers must explicitly outline a probationary period clause in an employment contract in order to make use of one. In most cases, an employer’s probationary period will be no more than three months in length. As a result, it’s not uncommon for an employer to dismiss an employee within their probationary period without providing notice or severance pay.

However, most non-unionized employees are protected by the Employment Standards Act, 2000 (ESA) from being fired without just cause. Unless there’s an issue with an employee’s health or safety, they must be provided with working notice or pay in lieu of notice before they can be terminated. If an employer fails to meet this standard, they risk being found to have dismissed the employee unfairly and will be required to pay severance in addition to their termination pay.

Can Employees on Probation Get Severance Pay?

Severance pay is a lump sum payment that’s equal to one week of your regular wages for every year of service you’ve worked at a job, up to a maximum of 26 weeks. The ESA requires that employers of a certain size pay this amount when they sever their relationship with an employee in Ontario. However, a lot of employers in the province try to get around this by creating improperly worded termination clauses that restrict their obligation to minimum ESA entitlements.

An employer that tries to do this will likely run into issues with the courts, as this is an unfair practice and a breach of the law. It’s also not something that’s good for business, as it will be hard to find replacement workers if an employer is willing to pay severance pay ontario for someone who was hired and subsequently terminated.

An experienced employment lawyer can help you navigate the ins and outs of employment contracts, termination clauses, and severance pay ontario requirements. They’ll review the terms of your employment to ensure that any probationary or termination clauses are in compliance with the law, and they’ll determine whether you’re owed a minimum ESA entitlement, or if you’re entitled to common law severance pay instead. For more information on payroll and team management, visit the Knit blog.