Many employees in Ontario believe that once they reach 60 or 65, they’re no longer entitled to severance if their job ends. That’s a myth. Age actually strengthens your severance claim, not weakens it.

If you’re approaching retirement age, or your employer ends your employment after decades of service, you need to understand how severance and retirement rules work in Ontario.

Do You Get Severance Pay When You Retire in Ontario?

The answer depends on who makes the decision:

• Voluntary retirement: If you choose to retire, you are not entitled to severance pay. Retirement is considered your decision to end the employment relationship.
• Employer termination: If your employer ends your job, even if they say it’s “time to retire,” you are legally entitled to severance pay — regardless of your age.

Key Point: If you feel pressured into retiring, it may be a termination disguised as retirement. That could entitle you to full severance pay, and possibly a human rights claim. Read our Forced Retirement Ontario Guide

Severance Pay Over Age 60

Being 60 or older often means a higher severance entitlement. Ontario law considers several factors when deciding how much severance is owed, and age is one of the most important.

Why? Because:

• Employees in their 60s typically face more difficulty finding new work
• The job market is often less welcoming to older workers
• Long service combined with older age increases entitlement

Example: A 62-year-old manager with 20 years of service could...

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