Nov 7, 2026
The online design platform Canva is offering recently laid off employees at least six months’ salary, career support and the option to keep their work laptops following a major restructuring. But most Canadian workers shouldn’t expect the same package if they lose their jobs.
The Australian design platform announced on November 4 that 1,271 employees, or 22% of its workforce, would be affected by organizational changes.
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Those leaving will receive at least six months’ salary, inclusive of statutory entitlements, along with 12 months of continued health coverage where available, career coaching and a year of LinkedIn Premium. Departing employees can also apply for US$10,000 grants to start a business or community project.
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In Canada, what you’re entitled to when you’re laid off depends on where you work, how long you’ve been employed and the terms of your employment contract. The legal minimum may also be considerably less than what you could receive under common law.
Termination pay and severance pay aren’t the same
Employment standards legislation generally requires employers to provide eligible employees with advance notice of termination or pay in lieu of notice. This is commonly called termination pay.
In Ontario, employees with at least three months of continuous service are entitled to between one and eight weeks of notice or termination pay, depending on their length of service, according to the provincial government’s employment standards guide.
In B.C., employees receive one week’s compensation after three consecutive months of employment, two weeks after 12 months, and an additional week for each completed year after three years, up to a maximum of eight weeks.
Federally regulated employees have different protections under the Canada Labour Code. They are generally entitled to at least two weeks’ notice or pay after three consecutive months, rising by one week for each completed year after three years, up to eight weeks.
Some employees also qualify for separate statutory severance pay. In Ontario, this generally requires at least five years of employment and an employer with a global payroll of at least $2.5 million, or a qualifying permanent business closure affecting at least 50 employees. Eligible employees can receive one week’s regular pay for each year of service, up to 26 weeks, under the province’sseverance pay rules.
Federally regulated employees with at least 12 consecutive months of service are entitled to severance pay calculated as two days’ wages for each full year of service, or five days’ wages, whichever is greater.
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You could be entitled to more than the legal minimum
Statutory minimums aren’t necessarily the full amount an employee can claim when dismissed without cause.
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Some non-unionized employees may also be entitled to common-law reasonable notice, which can be worth considerably more. Ontario’s employment standards guide explains that some employees have common-law rights beyond the statutory minimums.
Courts also consider factors such as age, length of service, position and the availability of comparable employment. There is no universal formula, and an employment contract may contain a termination clause that limits compensation if it is legally enforceable.
What to check before accepting a severance offer
Before signing a termination package, review the offer carefully and check whether it accounts for:
- Termination and severance pay: Does the offer include only statutory minimums, or is there additional compensation?
- Benefits: How long will health, dental and other insurance coverage continue?
- Bonuses and commissions: Are outstanding or prorated amounts included?
- Vacation pay: Has all accrued, unused vacation been accounted for?
- Stock and other compensation: What happens to unvested shares, options and other incentives?
- Deadlines and conditions: Are you being asked to sign a release or meet a deadline to receive the payment?
Employers may offer additional compensation in exchange for signing a release that gives up an employee’s right to pursue further claims. It’s worth getting independent legal advice before signing anything or agreeing to any terms, particularly if you’re unsure whether the package reflects your full entitlements.
A 2025 B.C. wrongful-dismissal case illustrates the distinction between statutory entitlements and additional compensation. An employer made an employee’s statutory termination pay conditional on signing a release, but the court found it couldn’t withhold those minimum entitlements when the employee refused to sign.
As employment lawyer Glen Stratton told Canadian HR Reporter: “You can’t contract out of statutory minimum obligations under employment standards.”
Canva’s package is unusually generous, not a Canadian standard. If you’re laid off, check your provincial or federal entitlements, review your employment contract and consider whether you may be owed more than your employer initially offers.
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Steven Brennan is a freelance finance writer based in Vancouver, BC. He holds a BA and an MA from Maynooth University, Ireland. His work regularly appears at Canadian Mortgage Trends, Lowest Rates, Loans Canada and other Canadian and U.S. brands.
