Severance pay, often referred to as a “severance package”, is an amount some employees may receive in addition to termination pay. It can include things like:

  • commissions,
  • bonuses,
  • pension and RRSP contributions,
  • health benefits,
  • vacation pay, and
  • other stipends and fringe benefits.

The amount of severance an employee receives is determined by the employment contract and common law. An employee who is considered vulnerable could be entitled to more severance pay. Vulnerable employees include those who have a disability, are pregnant, or are of an older age. Let’s look closer at how this type of vulnerability can impact severance pay.