Commonly Asked Questions Series: Where can I find a severance pay calculator?

Severance pay is money that your employer pays you when you are terminated without cause. Check out our blog post about terminations without cause here.

Severance pay is also sometimes called, termination pay, retirement pay, or pay in lieu of notice. Severance pay is meant to provide an employee with financial support as they transition out of their job and look for new employment. Severance pay is often offered in addition to regular pay and may include other benefits, depending on the circumstances of the termination and the terms of the employment agreement.

While the lawyers at Mint Legal would absolutely love it if you could simply use a calculator to sort out severance pay, unfortunately it is not that simple.

It has been said that severance pay is less of a science and more of an art. There are a variety of different factors that go into calculating severance pay. The analysis is very fact dependent and as a result, no two situations are the same.

There has been a perception in the past, both in the public sphere as well as in certain case law, that the going rate for severance pay is one month of severance pay for each year that you worked for the employer. This is inaccurate and there have been several cases issued that make it clear that there is no rule of thumb for severance pay.

A severance pay analysis takes into consideration the industry the employer is in, the case law for that industry, the job the employee had, how long the employee was with the company, whether there are a high volume of similar jobs available, whether the employee was headhunted, as well as other factors.

If you have recently been terminated, we highly recommend that you consider booking a severance review with one of our Mint Legal lawyers.

A severance review involves the lawyer looking over your termination paperwork, consulting with you about the termination, and giving you legal advice about whether the severance pay is appropriate or whether you have a further right to sue the employer. To book a severance review, you can start the process by filling out the form here.