Severance Package

This is the term for an amount of compensation that an employee is given upon termination of their employment without cause. It will usually include pay in lieu of reasonable notice and will often be contingent upon the employee signing a release. Notice pay and severance pay are two different things under the Ontario Employment Standards Act, but the term severance is often used colloquially to include both. Employees terminated without cause are entitled to notice or pay in lieu of notice. Severance pay is an additional amount, only paid in certain circumstances.