Severance Packages: Key Things to Know | Employment Law Show TV – S4 E28

Episode Summary

SEVERANCE PACKAGES: Key Things to Know, termination after filing a complaint, re-negotiating severance, and more on Season 4 Episode 28 of the Employment Law Show with employment lawyer Lior Samfiru, Partner at Samfiru Tumarkin LLP.

Watch above to discover your workplace rights and learn everything you need to know about employment law in Ontario, British Columbia, and Alberta on the only employment law show on both TV and radio in Canada.

Episode Notes

Harassment at work

I was being bullied and harassed by a coworker. This situation impacted my health and finally, I spoke to my employer about the circumstance. Nothing, however, was done to rectify the situation.

If you’ve spoken with your employer about the harassment within the workplace, that you’re experiencing and nothing is done about it, contact an employment lawyer to pursue termination and compensation.

Segment starts at 1:55

When to pursue a severance package

I have been temporarily laid off due to COVID-19. I’ve been working for the company for 20 years. Can I choose to take my severance package now? What happens if I accept the layoff, get recalled back to work, and then put on another layoff?

A temporary layoff in most situations is illegal. It gives the employee the right to treat it as a termination now and get their severance. If you choose to accept the layoff and are recalled to work at some point, you will be giving the company the right to do it again and again in the future. You only have one opportunity to treat this as a termination.

Segment starts at 4:30

Severance Pay Calculation

I lost my regional sales job after 6 years with a mid-sized company. My base salary was $30,000, though I usually made $60,000 after commission. My employer gave me 10 weeks’ pay as severance, but calculated using my base pay only! This doesn’t seem right.

When calculating severance, your full compensation needs to be considered, such as commission, bonuses, car allowance, or any other perks or benefits you receive, and it is not just based on your salary. But you would not just be owed 10 weeks. Go to Pocket Employment Lawyer to find out how much you’re owed.

Segment starts a 7:55

Severance Packages: Key Things to Know

1️⃣  Is there a difference between severance pay and termination pay?

There is no significant difference between the two definitions. When we are talking about severance, we are talking about the amount of compensation you are owed if you lose your job.

Segment starts at 11:02

2️⃣  How big should somebody’s severance package be if they lose their job?

Your severance is based on a variety of factors including your position, years of employment, and age.

Segment starts at 12:20

3️⃣  How does an employment agreement impact a severance package?

An employer may try to limit severance in an agreement however there are reasons it might not be enforcible.

Segment starts at 13:45

4️⃣  Can an employer force an employee to accept a severance package by a certain deadline?

Every severance letter has a deadline however this is a pressure tactic used by employers. Every employee actually has 2 years to file a claim for severance.

Segment starts at 15:02

5️⃣  Should somebody contact the Ministry of Labour or Employment Standards Branch if they think they are owed more severance?

The Ministry of Labour or Employment Standards Branch can only help you get minimum entitlements.

Segment starts at 16:25

6️⃣  An employer doesn’t owe any severance if the employee was let go for a good reason, right?

An employer can let you go without severance unless there is termination for cause.

Segment starts at 17:40

Targeted after filing a complaint

My husband has been singled out and targeted by his employer ever since he filed a complaint against his district manager. He was just put on a temporary layoff after 10 years with the company. What are his rights?

Your husband’s temporary layoff can be treated as a termination. There could also be additional consequences because of the employer’s behaviour. An employer cannot punish an employee for standing up for their rights. That is a reprisal.

Segment starts at 19:11

Re-negotiating a termination

I was laid off shortly after my employer was bought by an American company. They’re moving all of the jobs to the U.S. I’ve been given a month’s working notice. Can I renegotiate my termination due to COVID-19, even though I signed the papers?

Unfortunately, if you have agreed and accepted the initial severance offer, you cannot go back and re-negotiate.

Segment starts at 22:55

Termination without severance pay

My employer just laid off half our staff and has given their duties to those of us who remain. This has doubled my workload. I am already beginning to crack under the pressure, but my boss is threatening to fire me without two weeks’ severance pay if I can’t keep up.

If your pay has stayed the same but your workload has doubled, you can still treat this as a constructive dismissal as your job has changed.

Segment starts at 25:45

Next Episode: Employment Law Show S4 E29 – COVID-19: Terminated After Temporary Layoff

Previous Episode: Employment Law Show S4 E27 – Answering Your Common Employment Law Questions