Item - 2026.GG30.24

The General Government Committee:  

1. Received the report (May 19, 2026) from the Interim Chief People Officer for information.

This report provides information on non-union employee separation costs for 2025. The City of Toronto (City) has statutory and legal obligations to provide separation pay when the City terminates an employment relationship and is not able to establish just cause. In 2014 the City of Toronto's Auditor General reviewed the City's non-union employee separation costs. The review affirmed that separation costs had been awarded in accordance with City policies, procedures, legislation and jurisprudence and recommended that these costs continue to be monitored and reported out regularly.

Separation costs in this report include unilateral decisions made by the employer to exit employees from the workplace where exit payments are higher than legislative minimums. The separation payment provided in each circumstance is determined on a case-by-case basis, informed by both provincial legislation and the application of multiple factors that are consistently considered by the courts, detailed below. There remain three outstanding matters from 2025 which may have additional financial implications.