I got interested in learning about the severance pay in Ontario, Canada, that is why I ended up searching the keywords severance pay ontario in Google. After the search, I came across a lot of sites that talked about severance pay in Canada I learned that severance pay is actually different from termination pay. How it goes is that, a person only gets to have severance pay if he or she went through the following conditions: first, if the employer stops employing the employee due to bankruptcy or insolvency; next, if the employee was constructively dismissed and he or she resigned within a reasonable time; if the employer lays the worker off for thirty five days especially if it is due to reasons such as the establishment is permanently closing; and lastly, if the employer provides notice of termination to his or her employee and the employee will resign after two weeks of notice. Severance pay is a considered a compensation pay to an employee who is qualified, if he or she just had the job severed, thus the term severance pay. An employee will be qualified for a severance pay if he or she has already worked in the company for a minimum of five years; and also if his or her employer has a payroll of two million and five hundred thousand dollars. Severance pay is calculated by multiplying the wages per week to the number of years rendered It is beneficial to an employee who has been loyal to the company to be given a severance pay Severance pay will compensate for unemployed days of loyal employees who have lost their jobs due to bankruptcy of the company.