Canadian National Railway: Severance Packages

Canadian National Railway Company, commonly referred to as CN Rail, is one of Canada’s largest and oldest railway companies. It provides a wide range of transportation services, including the transportation of bulk commodities (such as grain, coal, and minerals), intermodal shipping (combining rail and truck transport), automotive transportation, and the movement of goods for industries like forestry, manufacturing, and energy. It operates an extensive rail network that spans across Canada and reaches into the United States, connecting major cities and ports.

CN Rail’s headquarters is located in Montreal, and it maintains numerous offices, rail yards, and facilities across Canada. The company has approximately 22,000 employees working in a wide range of roles, including train conductors and engineers, maintenance and repair technicians, operations and dispatch staff, sales and marketing professionals, supply chain and logistics specialists, IT and administrative roles, and management and leadership positions.

CN Rail’s history dates back to the late 19th century when it was founded on June 6, 1919. It was established as a crown corporation, meaning it was government-owned at the time. The government merged several struggling railroads to create a more efficient and competitive national rail system. In the 1990s, CN Rail underwent privatization and became a publicly traded company.

On August 22, 2024, more than 9,000 CN and CPKC rail workers were locked out after negotiations between the companies and The Teamsters representing unionized employees fell apart.

Recent layoffs at CN Rail

• February 2020: CN Rail is placing 450 of its employees on a temporary layoff in response to the opposition to the British Columbia LNG pipeline project.
• November 2019: CN Rail announced that it will cut 1,600 management and union jobs in response to an economic slowdown.

Severance Pay for Canadian National Rail Employees

In Canada, non-unionized employees at CN Rail may get up to 24 months of severance pay when they are fired or laid off from their job. This applies to individuals working in any capacity—full-time, part-time, or hourly—in Ontario, Alberta, and British Columbia. Contractors may also be entitled to severance pay due to employee misclassification.

Severance is the compensation provided to non-unionized workers in Canada by their employer when they are terminated without cause.

Even if an employee is fired for cause, they may still be eligible for full severance pay. This is due to the high standards required to legally justify for-cause dismissal.

LEARN MORE
• Severance for provincially regulated employees
• Severance packages in mass layoffs
• How severance pay works by company
• Severance for federally regulated employees

The right to severance pay is consistent regardless of economic conditions, company downsizing, business closures, or significant public health events, such as the COVID-19 pandemic.

WATCH: Employment lawyer Lior Samfiru explains everything you need to know about severance pay on an episode of the Employment Law Show.

The employment lawyers at Samfiru Tumarkin LLP have represented tens of thousands of employees over the years in severance package negotiations.

We have successfully secured much larger amounts for individuals employed across a variety of positions, from entry level jobs to executives.

How to properly calculate severance pay

There is a general belief that severance is one week’s pay, two weeks’ pay, or a week for every year of service an employee has with a company.

The reality is that severance for non-unionized employees in Canada is calculated using a variety of factors, including age, length of service, position, bonuses, benefits, and your ability to find new work.

ADDITIONAL RESOURCES
• Severance Pay in Ontario
• Alberta severance packages
• Understanding severance in B.C.
• Layoffs in Canada

Before accepting a severance offer, double-check the amount using our firm’s free Severance Pay Calculator. It has helped millions of Canadians determine their entitlements.

If your employer’s offer falls short of what our Severance Pay Calculator says you are owed, it’s very likely that you have been wrongfully dismissed and should contact an experienced employment lawyer at Samfiru Tumarkin LLP.

Don’t sign on the dotted line!

Do not accept any severance offer, termination papers, or exit agreement that you receive. Once you sign back these documents, you eliminate your ability to negotiate additional severance pay.

Non-unionized employees in Canada have up to two years from the date of their dismissal to pursue proper severance pay. An employer’s deadline to sign back a severance offer is not legally enforceable or binding.

Generally speaking, if an employee does not receive the proper amount of severance pay when they lose their job, they may be considered to have been wrongfully dismissed. An employment lawyer at Samfiru Tumarkin LLP can analyze your situation and explain how much compensation you may be owed.

Talk to an employment lawyer

The experienced employment law team at Samfiru Tumarkin LLP has helped tens of thousands of non-unionized individuals across the country. In addition to severance package negotiations, our team has experience securing solutions for the following employment matters:

Our lawyers in Ontario, Alberta, and B.C. stand ready to help you solve your workplace issues.

If you are a non-unionized employee who needs help with an employment issue, contact us or call 1-855-821-5900 to get the advice you need, and the compensation you deserve.

Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is not specific to any one company and should not be read as suggesting any improper conduct on the part of any specific employer, or a relationship between Samfiru Tumarkin LLP and a specific employer.