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Petition e-7616 Open for signature

This petition calls on Parliament to raise the maximum severance pay period to six months and penalize employers who routinely underpay workers when they are fired.

This petition calls on Parliament to raise the maximum severance pay period to six months and penalize employers who routinely underpay workers when they are fired.

EconomicGovernance

Sponsored by Don Davies (Vancouver Kingsway) · New Democratic Party

What it means for you

If you lose your job, you could be entitled to more money from your employer, and companies that try to shortchange workers on severance could face legal penalties.

352 signatures +12 past week

Recent daily signatures

Sign by November 26, 2026
The full petition text

Employment termination remains a serious social and economic challenge, particularly for Canadians aged 15 to 60 years old;

Statistics Canada estimates that roughly 4,000 to 4,200 Canadians lose their jobs every day;

Employment lawyers and labour advocates report that most Canadian employers attempt to undercut former employees and underpay their severance, offering only basic statutory minimums while ignoring much higher common law entitlements;

The Canada Labour Code mandates severance pay equal to only two days' wages per year of service, with a minimum of five days’ wages;

The Canada Labour Code mandates pay in lieu of notice of termination equal to one week’s wages per year of service, with a minimum of two weeks’ wages and a maximum of eight weeks’ wages;

The maximum severance under common law is typically 24 months’ wages, which is substantially higher than the provincial and federal standards;

Many employers purposely rely on the fact that workers are unaware of their entitlement to common law severance and will offer only the statutory minimum, which is much lower;

Most Canadians do not have the resources to file a legal claim against an employer, including legal fees of up to $200,000; and

Many Canadians suffer from adverse mental health impacts resulting from litigation.

We, the undersigned,Citizens of Canada, call upon theHouse of Commons in Parliament assembledto:1. Increase the statutory maximum to six months for pay in lieu of notice of termination; and 1. Increase the statutory maximum to six months for pay in lieu of notice of termination; and 2. Introduce statutory penalties for companies that routinely underpay severance or use internal contracts with restrictive termination clauses that severely limit payouts.

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