Federal pay in lieu of notice: 2 weeks after 3 months, rising to 8 weeks after 8 years
Estimates only, not financial advice. What you type stays on your device. Checked against sources on 16 Oct 2026.A federally regulated employer that ends a job must give written notice or wages in lieu of notice under section 230 of the Canada Labour Code: two weeks after three consecutive months, three weeks after three years, and one more week for each year up to eight weeks after eight years. On $65,000 a year, six years of service means six weeks, or $7,500 in lieu, before severance pay.
2026 · Rates and rules read from the sources listed on this page (the earliest on 16 Oct 2026); they may have changed since.
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The Canada Labour Code covers employees of federal works, undertakings and businesses, which section 2 lists as including shipping, interprovincial railways, air transport, radio broadcasting and banks. This calculator works out the two payments the Code requires when such an employer ends a job, following sections 229.1, 230 and 235 on the Justice Laws Website, current to 21 September 2026.
Notice or pay in lieu. Section 230 requires written notice, wages in lieu of notice at the regular rate for regular hours, or a mix that adds up to the same weeks. The minimum is two weeks after three consecutive months of continuous employment, three weeks after three years, four after four, and so on up to eight weeks after eight years.
Example. Six years on $65,000 a year: six weeks in lieu of notice is $7,500, and twelve days of severance is $3,000, $10,500 in total.
The rest of the article, and all 6 questions about Canada Federal Severance Pay Calculator, are on the Canada Federal Severance Pay Calculator page.
Section 235 requires severance pay once an employee has 12 consecutive months of continuous employment: the greater of 2 days' wages for each completed year of employment and 5 days' wages, at the regular rate for regular hours. Six years of service gives 12 days.
Section 230 sets the minimum at 2 weeks after 3 consecutive months of continuous employment, 3 weeks after 3 years, 4 after 4 years, and one more week each year up to 8 weeks after 8 years. The employer can pay wages in lieu instead of giving notice.
Pay in lieu of notice and severance pay are separate under the Canada Labour Code. Pay in lieu replaces the weeks of notice the employer did not give; severance pay is added on top once the employee has 12 months of service. Most dismissed federal employees with a year's service get both.
Neither notice nor severance pay under the Canada Labour Code applies to a dismissal for just cause. Section 229.1 excludes it from the notice rules and section 235 excludes it from severance pay. Vacation pay already earned is still owed, under the separate vacation rules.
Rates and rules change; check the source before you rely on a figure.
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