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.

Canada Labour Code ss. 230 & 235Federally regulated employers onlyVerified 26 September 2026

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A "day's wages" is estimated as weekly wages ÷ 5 (a standard 5-day work week). If your schedule is different, adjust the comparison yourself.

Result

Enter your dates and weekly wages.

The two entitlements, side by side

Years of serviceNotice of termination (s. 230)Severance pay (s. 235)
Under 3 monthsNoneNone
3 months – under 3 years2 weeksNot eligible until 12 months; then the 5-day minimum applies
3 years3 weeksGreater of 6 days or 5-day minimum → 6 days
4 years4 weeks8 days
5 years5 weeks10 days
6 years6 weeks12 days
7 years7 weeks14 days
8+ years8 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.

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