What legislation governs the payment of severance pay in Canada?

Severance pay in Canada is primarily governed by the employment standards legislation specific to each province and territory. This means that the rules and regulations concerning severance pay can vary across Canada, as each jurisdiction has its own set of employment standards that dictate the terms of pay upon termination of employment.

In provinces like Ontario, British Columbia, and Alberta, the legislation outlines eligibility criteria for severance, the calculation of severance pay, and the circumstances under which severance must be provided. It provides a framework that protects employees' rights when their employment ends and ensures they receive appropriate compensation based on their length of service and the conditions of their termination.

Other options, while related to employment, are not the primary governing legislation for severance pay. Federal employment laws apply to specific sectors and are more limited in scope. Union agreements might provide additional benefits or stipulations regarding severance but are not the overarching governing legislation. Taxation regulations, while relevant to the tax implications of severance pay, do not govern how much severance pay is owed or under what circumstances it is paid.