If an employee has nine years and three months of service and earns $950 per week, what is their ESA severance entitlement?

If an employee has nine years and three months of service and earns $950 per week, what is their ESA severance entitlement?

• A. $8,287.50
• B. $8,787.50
• C. $9,487.50
• D. $9,987.50

Answer: (D)

Under the Employment Standards Act, severance pay for employees with at least five years of service equals one week of wages for each year of service, up to a maximum of 26 weeks. Partial years are prorated in weeks of service. Here, the employee has 9 years and 3 months of service, which is 9.25 years. That translates to 9.25 weeks of severance pay. With a weekly wage of $950, the severance entitlement is 9.25 × 950 = $8,787.50. This amount is well within the 26-week cap, so no rounding up is applied beyond the pro-rated calculation.

Under the Employment Standards Act, severance pay for employees with at least five years of service equals one week of wages for each year of service, up to a maximum of 26 weeks. Partial years are prorated in weeks of service.

Here, the employee has 9 years and 3 months of service, which is 9.25 years. That translates to 9.25 weeks of severance pay. With a weekly wage of $950, the severance entitlement is 9.25 × 950 = $8,787.50. This amount is well within the 26-week cap, so no rounding up is applied beyond the pro-rated calculation.