Canada Labour Code

Marginal note:Minimum rate

• 235 (1) An employer who terminates the employment of an employee who has completed twelve consecutive months of continuous employment by the employer shall, except where the termination is by way of dismissal for just cause, pay to the employee the greater of

  • (a) two days wages at the employee’s regular rate of wages for his regular hours of work in respect of each completed year of employment that is within the term of the employee’s continuous employment by the employer, and

  • (b) five days wages at the employee’s regular rate of wages for his regular hours of work.

• Marginal note:Circumstances deemed to be termination and deemed not to be termination

  (2) For the purposes of this Division,

  • (a) except where otherwise provided by regulation, an employer shall be deemed to have terminated the employment of an employee when the employer lays off that employee; and

  • (b) an employer shall be deemed not to have terminated the employment of an employee where, either immediately on ceasing to be employed by the employer or before that time, the employee is entitled to a pension under a pension plan contributed to by the employer that is registered pursuant to the Pension Benefits Standards Act, 1985, to a pension under the Old Age Security Act or to a retirement pension under the Canada Pension Plan or the Quebec Pension Plan.