Oct 23, 2026
Getting laid off is difficult enough. But if you’ve just relocated for the job, you could also be dealing with moving bills, a new lease or mortgage and the loss of a steady job you left behind.
Even if you’ve only been in the role a few months, you may be owed more than you think. According to a recent report from The Canadian Press, moving for work can factor into how much compensation you’re entitled to. That’s why it’s worth getting advice before signing a termination package.
What are you entitled to?
There isn’t a single rule or formula that applies to all termination payouts across Canada. Most employees fall under provincial or territorial employment standards, while federally regulated workplaces, including banks, airlines and telecommunications companies follow federal rules.
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In Ontario, if you’re covered by the Employment Standards Act and have worked for your employer for at least three months, you’re generally owed advance notice of your job ending, pay in lieu of notice, or a mix of both. If you’ve been there for less than a year, the minimum is usually one week. Your employer must also continue to make its required contributions to your benefits during that notice period, even if you’re paid out instead of working through it.
Ontario also requires a separate severance payment for some employees, but you generally need at least five years with the employer to qualify. That doesn’t mean someone who’s only worked a few months is limited to one week’s pay. The rules above are legal minimums, and you may be owed more under common law, which draws on court decisions rather than the minimums set out in legislation.
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If you work in a federally regulated industry, the rules are different. Eligible employees generally get at least two weeks’ notice or pay after three consecutive months on the job, with longer service requiring more notice. A separate severance payment generally becomes payable after 12 consecutive months.
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Relocating could mean you’re owed more
Workly Law founder Sunira Chaudhri told The Canadian Press that courts recognize relocating can make finding another job more difficult. Working in a specialized field with few comparable openings can also factor in.
That said, moving for a job doesn’t automatically entitle you to extra compensation. But how you were recruited, what your contract says, and how difficult it will be to find similar work could affect what you’re owed.
Employment lawyer Lior Samfiru told The Canadian Press that workers can negotiate these protections before moving. For example, you could ask for a larger payout if the job ends or help cover the cost of moving homes.
If you’ve already moved, collect any written promises your employer made and have a lawyer review your contract. Even if you signed terms that limit your compensation, those terms may not hold up under the law.
3 steps to take before you sign
1. Ask for your termination package in writing
When you’re notified of the layoff, ask your employer for a written breakdown of the payment offered, when your benefits will end and any conditions attached. If you’re given a deadline to accept, ask for enough time to get legal advice.
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Check whether the package includes a release. Signing one could prevent you from seeking more compensation later, so make sure you understand it before agreeing.
2. Have your contract and relocation documents reviewed
Bring your offer letter, contract, termination package and relocation agreement to an employment lawyer. Include recruitment emails, moving receipts and any promises about job security or repayment of moving costs.
Ask whether the termination package meets the applicable minimums and whether you’re owed more. Also flag any demand to repay relocation assistance. If you’re unionized, contact your union about the process under your collective agreement.
3. Confirm your benefits and apply for EI promptly
Get the end date for health and dental coverage in writing so you can plan for prescriptions, appointments and replacement coverage.
Apply for Employment Insurance right away rather than waiting for negotiations to finish or your Record of Employment to arrive. Service Canada says waiting more than four weeks after your last day of work could cost you benefits. You can submit required documents after you apply.
Losing a job after relocating can leave you feeling pressured to accept whatever your employer offers. Before you sign, get advice and understand what you’re owed. You could be entitled to more than the initial package, even if you’ve only been in the job a few months.
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Colin Graves is a Winnipeg-based financial writer and editor whose work has been featured in publications such as Time, MoneySense, MapleMoney, Retire Happy, The College Investor, and more. Before becoming a full-time writer, Colin was a bank manager for over 15 years.
