Terminating an older employee in Ontario is legal — but it comes with higher risks and obligations. Employees over 50, 60, or even 65 are often entitled to enhanced severance pay, and employers must avoid age discrimination.
If you’re an employee who has been let go later in your career, or an employer considering a termination, here’s what you need to know.
Yes. Employers can terminate employees of any age — but only if they provide proper notice or severance pay, and do not terminate because of age.
Age discrimination is prohibited under Ontario’s Human Rights Code. If the reason for termination is linked to age, it could lead to a costly human rights claim.
Employees over 50 are often granted longer severance packages because:
Example: A 55-year-old professional with 15 years of service could be entitled to 16 – 20 months or more of severance.
Some employers mistakenly believe employees must retire at 65. This is false. Mandatory retirement is abolished in Ontario, except in rare jobs where physical ability is a bona fide requirement.
Learn More: For more details on how severance works after age 60 or 65, see our article on severance pay over 60 years old in Ontario
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