Termination Pay vs. Severance Pay in Oakville: Understanding the Difference
Most Oakville employees assume the number on their termination letter covers everything they are owed. It rarely does. Here is what Ontario law actually separates out and why it matters. There is a detail buried in almost every termination package that most employees never catch. The letter might say "severance" at the top. The number might look reasonable enough. But what it rarely tells you is whether that amount includes your termination pay, your ESA severance entitlement, or both and whether either one reflects what you are actually owed under Ontario law. The terminology sounds like it should be interchangeable. It is not. Termination pay and severance pay are two separate legal entitlements under the Employment Standards Act . They have different eligibility rules, different calculations, and different caps. Combining them under one vague number or leaving one out entirely is one of the most common ways Oakville employees end up short. Understanding the differenc...