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4. Entitlements During Notice Period
      
  Severance pay is intended to put you in the same position you would have been in if you had received proper notice. Severance pay includes lost wages and vacation pay. It may also include other employment benefits (like bonuses) that would have been paid during the notice period. If you have a fixed-term employment contract, severance pay is based on the wages and benefits that you would have got until the end of the fixed term, unless there is an early termination clause.

You can get more than just your cash salary. You should also get benefits and other compensation you would have received if you had kept working up to the end of your notice period. For example, if your employer owes you a notice period of four months, and the employer chooses to pay you a severance package, your payment will be more than four months’ salary. It should also include:
  • bonuses you would have earned and been paid during the four months
  • stock options you would have earned that would have vested during the four months
  • RRSP contributions
  • medical coverage
  • extended medical coverage
  • dental coverage
  • long-term disability insurance
  • short-term disability insurance
  • life insurance

 

 

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