Canadian · Federal employment standards
Federal severance pay.
For employees of a federally regulated employer — banks, airlines, railways, interprovincial or international trucking, telecoms, and federal Crown corporations. This is the Canada Labour Code, a different statute from any province's employment standards act.
Two separate entitlements, both statutory minimums: notice of termination (or pay instead of it) after 3 months of service, graduated from 2 weeks up to a maximum of 8 weeks at 8+ years; and severance pay after 12 months of service, the greater of 2 days' wages per completed year or a 5-day minimum, with no cap.
Inputs
Result
Enter your dates and weekly wages.
The two entitlements, side by side
| Years of service | Notice of termination (s. 230) | Severance pay (s. 235) |
|---|---|---|
| Under 3 months | None | None |
| 3 months – under 3 years | 2 weeks | Not eligible until 12 months; then the 5-day minimum applies |
| 3 years | 3 weeks | Greater of 6 days or 5-day minimum → 6 days |
| 4 years | 4 weeks | 8 days |
| 5 years | 5 weeks | 10 days |
| 6 years | 6 weeks | 12 days |
| 7 years | 7 weeks | 14 days |
| 8+ years | 8 weeks (cap) | 2 days × completed years, no cap |
Why this is a different calculator from the Ontario one
Most Canadian employees are covered by their province's employment standards act. A smaller group works for a federally regulated employer — banking, air transport, railways, interprovincial or international road/marine transport, telecommunications and broadcasting, and federal Crown corporations — and for them, employment termination is governed by Part III of the Canada Labour Code, not any provincial statute. The rules are similar in shape (notice plus a separate severance concept) but the numbers are different, and the Code's notice table was recently graduated: it now scales from 2 weeks up to 8 weeks by years of service, rather than a flat 2 weeks regardless of tenure.
Only completed years count toward the severance side's 2-days-per-year calculation; a partial final year adds nothing beyond the 5-day floor. Severance pay has no maximum under the Code (unlike Ontario ESA's 26-week cap) — a long-service employee's severance keeps growing at 2 days per year indefinitely.
Sources, read 26 September 2026: Canada Labour Code, R.S.C. 1985, c. L-2, s. 230 (notice of termination) and s. 235 (severance pay) — the consolidated federal statutes site, current in-force text; and the plain-language ESDC summary, canada.ca — termination, layoff or dismissal (page last updated 2026-07-23).
Frequently asked questions
How do I know if I'm federally regulated?
If your employer is a bank, an airline or airport operator, a railway, an interprovincial or international trucking or shipping company, a telecommunications or broadcasting company, or a federal Crown corporation, you're almost certainly covered by the Canada Labour Code instead of your province's employment standards act. Most other employers — retail, hospitality, most manufacturing, most offices — are provincially regulated.
Do I get both notice AND severance pay?
Yes, if you qualify for both — they are two separate, additive entitlements. Notice (or pay in lieu) applies from 3 months of service; severance pay is a second, additional payment that only starts once you've completed 12 months.
What counts as a "day's wages" for the 2-days-per-year calculation?
The Code says "regular rate of wages for regular hours of work," without defining that as a fixed fraction of a week. This calculator assumes a standard 5-day work week (weekly wages ÷ 5). If you work a compressed or unusual schedule, that assumption may not fit your case exactly.
Is there a maximum on federal severance pay?
No. Unlike Ontario's ESA (capped at 26 weeks), the Canada Labour Code sets no ceiling on severance pay — it keeps accruing at 2 days per completed year for as long as the employee's service continues.
Does this apply if I was dismissed for just cause?
No. Both notice of termination and severance pay are owed only when employment ends for a reason other than just cause. A genuine just-cause dismissal ends both entitlements.
Estimate only — not legal advice
This tool computes the Canada Labour Code's statutory MINIMUMS. It does not model unionized workplaces (where a collective agreement's own termination provisions can replace s. 230 notice), temporary layoffs, or the specific facts of a just-cause dismissal. Nothing here is legal advice, and no solicitor-client relationship is created by using it. Have an employment lawyer review any offer before you sign a release.