To qualify for severance in Ontario, which payroll condition is required?

To qualify for severance in Ontario, which payroll condition is required?

• A. Payroll not relevant
• B. Payroll of at least 2.5 Million
• C. Payroll of at least 1.0 Million
• D. Payroll of at least 5.0 Million

Answer: (B)

In Ontario, severance pay is tied to the size of the employer’s payroll. A long-serving employee is eligible for severance only if the employer has a payroll of at least 2.5 million in the prior 12 months (there’s also a separate mass-layoff route, but the payroll condition asked about is the 2.5 million threshold). This means payroll below 2.5 million generally does not trigger severance unless the mass layoff criterion applies. So the correct threshold is payroll of at least 2.5 million.

In Ontario, severance pay is tied to the size of the employer’s payroll. A long-serving employee is eligible for severance only if the employer has a payroll of at least 2.5 million in the prior 12 months (there’s also a separate mass-layoff route, but the payroll condition asked about is the 2.5 million threshold). This means payroll below 2.5 million generally does not trigger severance unless the mass layoff criterion applies. So the correct threshold is payroll of at least 2.5 million.