Calculating severance pay in Canada requires understanding the 
difference between statutory minimums and common law reasonable notice. 


In this episode, employment lawyer Brady Farmer explains how age, position, and length of service determine what an employee is truly owed.

Key Takeaways:

- The difference between the "floor" of statutory law and the "ceiling" of common law.
- Why the "one month per year" rule is actually a myth.
- How the duty to mitigate can lower an employer's total payout.
- The stark contrast between Canadian notice requirements and US 
"at-will" employment.

00:00 Defining statutory vs common law severance
02:13 How common law fills legislative gaps
03:15 Debunking the one month per year myth
03:56 Four factors for determining notice periods
05:54 Understanding the employee duty to mitigate
08:23 Strategies to encourage employee mitigation
11:13 Are termination clauses actually enforceable?
17:42 Why releases require extra consideration
19:04 Anatomy of a proper termination letter
23:41 Canada vs US employment law differences

**Find Brady Farmer**
Website: https://www.matthewsdinsdale.com/
LinkedIn: https://www.linkedin.com/in/brady-farmer-

**Find Andrea (me)**
Website: https://thehrhub.ca/
LinkedIn: https://www.linkedin.com/in/andrea-adams1/

The HR Hub

WRKdefined Podcast Network

Severance Law for Canadian HR Professionals

MAY 22, 202626 MIN
The HR Hub

Severance Law for Canadian HR Professionals

MAY 22, 202626 MIN

Description

Calculating severance pay in Canada requires understanding the difference between statutory minimums and common law reasonable notice. In this episode, employment lawyer Brady Farmer explains how age, position, and length of service determine what an employee is truly owed. Key Takeaways: - The difference between the "floor" of statutory law and the "ceiling" of common law. - Why the "one month per year" rule is actually a myth. - How the duty to mitigate can lower an employer's total payout. - The stark contrast between Canadian notice requirements and US "at-will" employment. 00:00 Defining statutory vs common law severance 02:13 How common law fills legislative gaps 03:15 Debunking the one month per year myth 03:56 Four factors for determining notice periods 05:54 Understanding the employee duty to mitigate 08:23 Strategies to encourage employee mitigation 11:13 Are termination clauses actually enforceable? 17:42 Why releases require extra consideration 19:04 Anatomy of a proper termination letter 23:41 Canada vs US employment law differences **Find Brady Farmer** Website: https://www.matthewsdinsdale.com/ LinkedIn: https://www.linkedin.com/in/brady-farmer- **Find Andrea (me)** Website: https://thehrhub.ca/ LinkedIn: https://www.linkedin.com/in/andrea-adams1/