Canada payroll guide

The Canada Severance guide. Deadlines and automation.

Canada Severance, explained for employers by the Workzoom payroll team: the filing deadlines and how Workzoom automates the math. Then run the numbers in the Severance calculator.

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Since 2000. Workzoom has run Canadian payroll for 25+ years.
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Filing calendar · Marked against the actual deadlines

When Severance is due.

ROE

Record of Employment

Due within 5 calendar days of the last pay period worked

The ROE is filed with Service Canada on every termination, leave, or interruption of earnings. It carries insurable earnings, insurable hours, and a reason code (M for dismissal, A for shortage of work, etc.) that drives EI eligibility. Workzoom generates the ROE electronically from the same payroll engine that ran EI through the year, ready to submit through ROE Web, so the numbers match Service Canada's records.

Workzoom HR + Payroll · Canada

Stop guessing terminations by spreadsheet.

Workzoom HR records the hire date, every position change, every pay change, and every leave that employment counsel needs to calculate accurate severance. When termination happens, Workzoom Payroll runs the final pay with statutory notice and severance, generates the ROE electronically for submission to Service Canada within the 5-day window, and issues the T4 at year-end with the termination payment categorized correctly for the CRA. One employee record, one platform, one source of truth for the lawyer to work from.

Complete employment history (hire date, position, pay, leaves) maintained per employee
Statutory notice and severance calculated against the Ontario ESA or provincial equivalent
Common-law estimate available as an HR planning input, not legal advice
Final pay run with retroactive adjustments and statutory deductions
ROE generated electronically for Service Canada within the 5-day window, ready to submit

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Canada payroll automation in Workzoom, canada severance calculator in Workzoom

Last updatedMay 14, 2026

Definitions

ESA: Employment Standards Act, 2000. The Ontario statute setting minimum termination notice (1-8 weeks based on length of service), statutory severance (1 week per year up to 26 weeks for employers with $2.5M+ payroll), and other minimum employment standards. Source: ontario.ca/laws/statute/00e41.

Statutory notice: The minimum written notice period (or pay in lieu) an employer must give before terminating without cause under provincial employment standards. In Ontario, 1 week per completed year of service up to 8 weeks at 8+ years.

Statutory severance: An additional statutory payment under the Ontario ESA, payable on termination when the employer has $2.5M+ annual payroll AND the employee has 5+ years of service. 1 week per year of service capped at 26 weeks.

Common-law severance: Reasonable notice (or pay in lieu) set by the courts using the Bardal factors: age, length of service, character of employment, availability of similar employment. Typically 3-4 weeks per year of service, capped around 24 months at senior levels. Separate from and additional to statutory minimums.

Bardal factors: The four factors from Bardal v Globe and Mail (1960) used by Canadian courts to calculate common-law reasonable notice: (1) length of service, (2) age, (3) character of employment, (4) availability of similar employment in the labour market.

ROE: Record of Employment. Service Canada form filed within 5 calendar days of the last pay period worked when an employee has an interruption of earnings. Drives EI benefit eligibility and the timing of severance pay.

Pay in lieu: Cash payment in place of the working notice period. Typically calculated as the employee's regular wages, plus benefits and accrued vacation, that would have been earned during the notice period.

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