Working past age 65 in Ontario? Here are five things you need to know about severance pay

1. There is no age limit on severance pay

Ontario abolished mandatory retirement years ago, which means employees can continue working past 65. That same principle extends to severance – there are no age-based restrictions that prevent you from receiving severance pay if you’re 65 or older. Whether you’re terminated at 67, 70, or beyond, your right to severance is the same as any other employee.

“A lot of people over 65 assume they’ve aged out of their rights,” says Samfiru. “They haven’t. The law doesn’t put an expiry date on what you’re owed.”

2. Voluntary retirement and employer termination are legally different

This distinction matters more than most people realize. If you choose to retire, you are not entitled to severance pay because the decision to end the employment relationship comes from the employee.

But if your employer terminates your job, you are legally entitled to severance pay regardless of your age. The key question is always who made the decision.

3. Severance entitlement typically increases with age

When determining severance in Ontario, the law considers multiple factors including age, length of service, character of employment, and availability of similar work. Older workers are almost always entitled to higher severance pay, as courts recognize that older workers typically face greater difficulty finding comparable employment, which is factored directly into how much is owed.

Severance pay in Ontario can be as much as one month of pay for every year worked, up to two years in total compensation. Long service combined with older age often results in higher severance pay. To see what you might be entitled to, try the Severance Pay Calculator for an estimate, and contact Samfiru Tumarkin LLP to understand your options.

“Employees are owed as much as 24 months’ pay, but companies routinely offer less than that,” Samfiru notes. “For older employees especially, the first offer is almost never the right one. Don’t sign anything until you talk to a lawyer.”

4. ‘Pressure to retire’ may actually be considered termination

If you feel pressured into retiring, it may be a termination disguised as retirement, which could entitle you to full severance pay and possibly a human rights claim. Employers sometimes frame a termination as a mutual decision or a natural transition into retirement to avoid paying out what’s owed.

“I’ve seen this quite often,” says Samfiru. “An employer tells a long-serving employee it’s ‘time to think about the next chapter.’ The employee walks away thinking that’s just how it goes. In reality, if the decision wasn’t genuinely theirs, they may be owed months of severance they never collected.”

5. Terminating someone because of their age is illegal

In Ontario, an employer can legally let go of an older employee, but only when specific conditions are met. They must provide proper notice or severance pay, and they can’t terminate because of age. Age discrimination is prohibited under Ontario’s Human Rights Code, and even casual remarks about a person’s age during their termination can be used as evidence of discrimination.

“Just because your employer says it’s time to move on doesn’t mean they handled (the termination) legally,” says Samfiru. “If age played any role in the decision, that could lead to a wrongful dismissal claim and a human rights complaint on top of it."

If you’re 65 or older and have been let go, speak to an employment lawyer before accepting any offer. You may be entitled to significantly more than you think.

Recognized as Canada’s leading employment law firm, Samfiru Tumarkin LLP represents non-unionized employees in Ontario, Alberta and B.C., and handles denied long-term disability benefits in all provinces (excluding Quebec).

Discover your rights by watching Lior Samfiru on Ask a Lawyer every Monday and Wednesday at 9 p.m. ET on CP24.