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PE · 2026

Prince Edward Island Severance Pay Calculator

2 weeks after 6 months, stepping up to 8 weeks at 15+ years of service.

Employment Standards Act, s. 29

Employee details

Employment Standards Act, s. 29

$

Weekly equivalent: $1,250.00 (annual ÷ 52)

Service

3.0 years

36 complete months · $1,250.00/week

Pay in Lieu of Notice

$2,500.00

2 weeks minimum

Statutory Minimum Total

$2,500.00

Per Employment Standards Act, s. 29

How termination pay works in Prince Edward Island

Under Employment Standards Act, s. 29, an employee in Prince Edward Island who is terminated without cause is entitled to a statutory minimum amount of notice — or pay equivalent to that notice period if the employer chooses not to have the employee work it out.

The schedule below shows the statutory minimum in weeks at several common tenure points. To convert to dollars, multiply the weeks figure by the employee's regular weekly wage (use the calculator above for a live calculation).

Length of serviceStatutory notice
3 monthsNone
6 months2 weeks
1 year2 weeks
2 years2 weeks
3 years2 weeks
5 years4 weeks
7 years4 weeks
10 years6 weeks
15 years8 weeks
20 years8 weeks

Special rules & edge cases

  • PEI requires 6 months of continuous employment before any notice entitlement begins — one of the highest eligibility thresholds in Canada.
  • No statutory severance. s.29 is the full statutory entitlement.

Common-law reasonable notice

The figures above are the statutory floor. Common-law reasonable notice under the Bardal factors — age, length of service, character of employment, and availability of similar employment — is usually longer. A 15-year senior manager in Prince Edward Island may be entitled to 18–24 months of reasonable notice where the statutory cap is 8 weeks. Unless the employment contract contains a clear and lawful termination clause limiting the entitlement to the statutory minimum, the employee keeps their common-law rights. Always consult employment counsel before finalizing a package.

Run Prince Edward Island offboarding end-to-end.

Hibiscus HR turns this calculation into an audited offboarding workflow — ROE filing on Service Canada V2.0, termination letter, final pay, equipment checklist, and the audit trail to prove every step happened.