CHRL Law Practice Exam

Severance pay under the Employment Standards Act is a long-service entitlement that compensates employees when the employer’s business ends or undergoes a permanent layoff. It is calculated as one week of pay for each year of service, up to a maximum of 26 weeks. So the largest amount you can receive as severance pay is 26 weeks of wages, even if you’ve worked for the company longer. This is separate from any termination notice or pay in lieu, which have their own timelines. The other options don’t fit because the policy caps severance at 26 weeks, not at 8 or 12 weeks, and not at a full year (52 weeks).