Month per Year of Service Explained: What Are You Owed?
- Mar 7
- 3 min read
If you’ve recently lost your job in Niagara Falls or Welland, one of the first questions you might have is: “How much compensation am I entitled to?” Many people assume that the amount offered by their employer is fair, but in my experience as a lawyer, that’s rarely the case. Let’s break down what “month per year of service” really means and how it applies to wrongful dismissal claims in Ontario.
Your Guide to Wrongful Dismissal in Welland
Wrongful dismissal occurs when you’re terminated without proper notice or fair compensation. Employers in Ontario are allowed to terminate employment without cause, but they must provide adequate notice or pay in lieu of notice. If they fail to do so, you may have a claim for wrongful termination.
The confusion often comes from the difference between minimum standards under the Employment Standards Act (ESA) and what you’re actually owed under common law. The ESA sets out the bare minimum, but courts often award significantly more.
ESA Minimums Vs. Common Law Entitlements
Under the ESA, severance pay applies only if:
you’ve worked for the employer for five years or more
the employer has a payroll of at least $2.5 million
there is a mass termination involving 50 or more employees within six months
If you qualify, the ESA formula is simple: one week of pay per year of service, up to a maximum of 26 weeks. For example, if you worked for 10 years, you’d get 10 weeks of severance pay under the ESA. This is in addition to termination pay, which is also based on length of service.
But here’s the key point: ESA minimums are not the full picture. Under common law, your entitlement is based on factors like:
length of service
age
position and responsibilities
availability of similar work in your area
Courts often award a month per year of service, and sometimes more. For long-term employees in senior roles, compensation can range from several months to 24 months or more.
Month per Year of Service Explained for Wrongful Dismissal Cases
This phrase refers to the common law approach. If you worked for 12 years, you might be entitled to 12 months of pay, not just 12 weeks. That’s a huge difference. Employers often offer only ESA minimums, hoping you’ll accept without question. Unfortunately, many employees do just that and leave thousands of dollars on the table.
Why Geography Plays a Role in Wrongful Dismissal Compensation
In smaller communities like Niagara Falls and Welland, finding comparable employment can take longer. Courts consider this when determining reasonable notice. If jobs in your field are scarce, your notice period and your compensation may both be extended.
Signs You May Have a Wrongful Dismissal Claim
If you were let go without cause and offered only the ESA minimum, you likely have grounds for a wrongful dismissal claim in Welland. Even if your employer says the package is “standard,” it may not reflect your full entitlement under common law.
Here’s what you should do:
Don’t sign anything right away. Employers often include deadlines to pressure you.
Gather your documents. Employment contract, termination letter, and any severance offer.
Get legal advice. A lawyer can calculate what you’re truly owed and negotiate on your behalf.
Example Scenario
Imagine you worked in Welland for 15 years in a managerial role and earned $70,000 annually. Your employer offers 15 weeks of pay. Under common law, you could be entitled to 15 months of pay or more, which is over $87,000. That’s a life-changing difference.
Don’t Settle for Less
If you’re facing termination, remember this: the law is on your side. Don’t assume the first offer is fair. In most wrongful dismissal cases, employees are entitled to far more than what’s initially offered. If you’re in Niagara Falls or Welland and need guidance, reach out to J. Leigh Daboll Law Office and talk to a lawyer who understands local employment law. Safeguard your legal rights and claim the full compensation you’re entitled to.