Severance Package Primer for Canadians | Employment Law Show TV – S6 E02

Episode Summary

SEVERANCE PACKAGE PRIMER FOR CANADIANS, contract renewals, sexual harassment complaints, and more on Season 6 Episode 02 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

Employer asking for regular COVID-19 testing

My employer has given me the option of either getting vaccinated or taking regular COVID-19 tests. I don’t want to take tests as I believe they’re invasive. Can they make me take regular tests?

• Questions regarding COVID at work: Employers are able to request regular COVID-19 testing from employees. It is important to note however that an employee who refuses to be tested and is let go is still entitled to severance as they cannot be terminated for cause. Employees who work in a sector that has a government mandate, however, would be terminated and not entitled to severance or employment insurance.

Severance pay for a temporary or contract worker

I worked for a temporary agency, where they designated me as an “elect to work” employee. Through the agency, I worked for over 3 years for the company before the contract ended. Do I get severance?

• Severance entitlements: Employees who have lost their job are entitled to severance despite the fact that they were hired through a temp agency. Employees who were hired through a temporary agency could be entitled to severance from the company they worked for as well as potentially the agency itself. Employees who are unsure of whether or not they are owed severance should contact an employment lawyer.
  • LEARN MORE
    Severance Entitlements in Ontario
    Severance Pay in Alberta
    Severance Pay B.C
    

Rights for an employee with a repeated contract renewal

I have been working for five years with the company, with my contract renewed every year. This time around, they decided not to renew because I failed to satisfy their difficult performance improvement plan. Am I owed severance?

• Repeated employment contracts: Employees who have signed repeated contracts, typically more than three, are considered to be indefinite employees by employment law. Employees in this situation would be owed severance after a loss of employment. It is also important to remember that performance improvement plans cannot affect whether or not an employee is entitled to severance as it rarely leads to a termination for cause. Employees who are on a fixed-term contract and are let go before the end of the contract, are owed the balance of the contract.

Severance Package Primer for Canadians

• You do not have to accept a severance package or offer on the spot: Employers often impose a deadline for employees to accept a severance offer as a pressure tactic. Employees do not have to accept and sign a severance offer until they are ready and have ideally looked over their options with an employment lawyer. Terminated employees have up to two years after the initial date of termination to pursue their entitlements.
• A severance package is calculated using many factors: Severance is based on a number of factors including the age of an employee, the position as well as the length of employment. Other factors also determine severance such as the state of the economy and possible future employment opportunities, whether or not an employee has been recruited, etc.
• Influenced by your employment contract: Employers often include terms in an employment contract that can limit an employee’s future severance entitlements. Before signing an employment agreement employees should look closely for termination clauses. In many cases, however, termination clauses are not enforceable but it is still important for employees to be proactive.
• Let go “for cause” or were a “contractor”: Employees can only be terminated for cause due to serious misconduct, simple mistakes and errors should not let to termination for cause. Employers have to be able to prove that there were no other alternatives other than termination, as well as an escalation in disciplinary measures in order to terminate an employee with cause. Employees who have been misclassified as contractors are also entitled to severance, despite what their employers impose.
• Changes are made to your job, harassed, or forced to resign: Employees are owed severance if factors are outside of their control, such as a change to the terms of their employment, are implemented. Changes to the terms of employment, or harassment at the workplace that is not resolved can lead to constructive dismissal. Employees who have been constructively dismissed are still owed severance as they had no choice but to leave their position, and cannot be considered to have resigned.
• You should talk to an employment lawyer: Employees often are unaware of their rights upon termination and are offered inadequate severance packages. Before accepting a severance offer, employees should contact an employment lawyer in order to determine their rights.

Employment standards severance for a one-year employee

How much severance does somebody get after working for less than one year? I thought Employment Standards set it at one month.

• Severance pay for short-term employees: Short-service employees often receive disproportionately more severance than long-service employees. In most cases, short-service employees receive approximately three months of severance. Employees who have worked for a short period of time could have a more difficult challenge in finding future employment.

Management fails to rectify sexual harassment complaints at work

My sister has experienced very serious sexual harassment at work. Management is offering her very cushy jobs in exchange for her being silent, instead of taking further action. She’s not sure what she should do.

• Harassed at work: Employees who are harassed in any manner at the workplace should first communicate and report their concerns to the appropriate department at their workplace. Employers are obligated to provide a healthy and safe work environment free of harassment for all employees. If an employer fails to resolve or properly investigate the reports of harassment, an employee is within their rights to file a complaint with the Ministry of Labour. Employees who have been harassed could also be owed potential human rights damages.

A senior employee asked to sign an employment contract

My 63-year-old uncle is being asked to sign an employment contract. He never signed one when he started with his employer 16 years ago. Three of his colleagues signed one a few months ago and were fired shortly after.  What are his rights?

• Employment contract terms: Employees should be wary of signing a new contract after their employment has already begun. New contracts often include new terms that can limit an employee’s rights to severance upon termination. Before agreeing to sign a contract, employees should contact an employment lawyer. In order for a new agreement to be binding, employees will have to be

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