Terminated from Air Canada: Are you entitled to Severance?

Air Canada Layoffs in January 2021

On January 13, 2021, in a news release, Air Canada announced that it would be further reducing its operations by an additional 25%. As a result, approximately 1,700 employees, in addition to over 200 employees at its Express carriers, have been either officially or effectively terminated.

If you are among the employees who have lost your job as a result of Air Canada’s recent actions, and you are non-unionized, you may be entitled to a severance package.

Am I entitled to a severance package if I’ve been temporarily laid off by Air Canada?

Yes. You do not have to accept the layoff. You may treat the employment as constructively dismissed and pursue a severance package in the same manner described below as if you were terminated.

Am I entitled to a severance package if I am a contractor?

It depends. It is possible that you may actually be seen as an employee in the eyes of the law. If this is in fact the case, you would be eligible to pursue a severance package in the same manner described below.

What are my minimum entitlements?

The governing legislation states that your minimum entitlements upon termination are as follows:

• 2 weeks of advance notice of termination or, alternatively, 2 weeks’ pay in lieu of that notice, if you have been employed for at least 3 months continuously; and
• An additional 5 days of pay or 2 days of pay for each completed year of employment, whichever of these two amounts is greater.

Is it possible to obtain a much larger severance package from Air Canada?

It definitely is. If you have been terminated without cause, you have an ability to pursue a severance package beyond your minimum entitlements. The exact amount that you could be entitled to depends on, but is not limited to, the following:

• Your age;
• Your length of service;
• Your position with the company;
• Your salary; and
• Your ability to find new, comparable employment

Depending on where you fall within the above factors, your severance package can end up to be as much as 24 months’ pay. You can use this helpful Severance Pay Calculator to assist you in determining your severance pay range.

Will the pandemic affect my entitlements?

Yes, but only to your benefit. While Air Canada cannot rely on the pandemic as an excuse for withholding or denying you your severance pay, you can rely on the pandemic as a justification for your inability to find comparable employment.

What do I do now?

If your contract with Air Canada has been terminated or you have been temporarily laid off, we highly advise that you contact us immediately to explore all of your options to ensure that you make the best possible decision.

For more information, we also recommend you review our detailed breakdown on severance pay for Air Canada employees.

Our lawyers Toronto, Ottawa, Calgary and Vancouver, can review your situation and ensure that your workplace rights are properly enforced. As the most positively reviewed law firm in Canada, we have helped tens of thousands of individuals in Ontario, Alberta and B.C. get the compensation and justice they deserve.