Which of the following statements is NOT a requirement for severance eligibility?

Which of the following statements is NOT a requirement for severance eligibility?

• A. The employee must have had their employment severed
• B. The employer must be located in Ontario
• C. The employee must have worked for at least five years
• D. The employer must have payroll at least 2.5 million OR severed 50+ within 6 months

Answer: (B)

Severance eligibility hinges on three elements: the employment must be actually severed, the employee must have five or more years of service, and the employer must meet a size or layoff threshold. The first part ensures there’s a termination event that could trigger severance. The five-year service rule sets the eligibility bar for tenure. The second threshold requires either a payroll of at least $2.5 million in the prior year or a mass layoff of 50 or more employees within six months. The employer’s location within Ontario isn’t part of these criteria—the statute applies based on the employment relationship, the employee’s tenure, and the employer’s scale, not where the employer is located.

Severance eligibility hinges on three elements: the employment must be actually severed, the employee must have five or more years of service, and the employer must meet a size or layoff threshold. The first part ensures there’s a termination event that could trigger severance. The five-year service rule sets the eligibility bar for tenure. The second threshold requires either a payroll of at least $2.5 million in the prior year or a mass layoff of 50 or more employees within six months. The employer’s location within Ontario isn’t part of these criteria—the statute applies based on the employment relationship, the employee’s tenure, and the employer’s scale, not where the employer is located.