Federal (Canada Labour Code) Severance Pay Calculator

Estimate the statutory minimum termination pay in Federal (Canada Labour Code) from your length of service and weekly pay.

WH By WageHour Tools Editorial Team Verified against official sources June 19, 2026 How we research
Weeks' pay owed
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no fixed cap
Statutory termination pay
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This is the statutory floor, not the likely payout. In Canada, dismissed non-unionized employees can often claim common-law reasonable notice, which is frequently far higher — sometimes around a month per year of service. Treat this number as the legal minimum.

Federal (Canada Labour Code) termination pay rules

Federally regulated employees (banks, airlines, interprovincial transport, telecom) are covered by the Canada Labour Code. After 12 months, severance pay is the greater of 2 days' wages per year of service or 5 days' wages.

  • Severance pay: 2 days' regular wages per completed year of service, with a minimum of 5 days.
  • This is separate from the notice of termination (graduated since Feb 1, 2024: 2 weeks at 3 months, then 3 weeks at 3 years, +1 week per additional year to a maximum of 8 weeks) or pay in lieu.
  • Applies only to federally regulated industries - most employees are covered by their province instead.

This estimates Canada Labour Code severance pay only (not the separate notice period). Common-law or contractual entitlements can be higher.

Termination pay by length of service

Severance accrues per year of service: 2 days' pay per completed year of service (minimum 5 days), after 12 months.

Official sources

Frequently asked questions

How is statutory termination pay calculated in Federal (Canada Labour Code)?

It is based on length of service — broadly one week's pay per year, up to a maximum of 999 weeks. You generally qualify after 12 months of employment. The calculator multiplies the weeks owed by your weekly pay.

Is this the same as common-law severance?

No. This is the statutory minimum set by employment standards. Non-unionized employees can often claim common-law reasonable notice instead, which is frequently much higher — sometimes around a month of pay per year of service. The statutory amount is a floor, not a ceiling.

Can an employer give notice instead of pay?

Yes. Employers can usually provide the equivalent period of written working notice, pay in lieu, or a combination. Termination pay is what is owed when sufficient notice is not given.

What's the maximum statutory amount in Federal (Canada Labour Code)?

The statutory termination entitlement is capped at 999 weeks' pay. Additional entitlements (such as Ontario's separate ESA severance pay or common-law notice) can exceed this.