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:Clarification

  (1.1) The employer’s obligation to pay and the employee’s right to receive the amount under subsection (1) apply whether or not the employee has a right to avail themselves of any procedure for redress under this Part, including under subsection 240(1), with respect to the termination of their employment.

• 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.

  • (b) [Repealed, 2011, c. 24, s. 167]