Employment lawyer on tech layoffs and what to look for in a severance package

Interview Summary

Major technology corporations seem to be announcing mass layoffs with growing frequency as the demand for products decreases. What can employees in the tech sector expect in the coming weeks? Are employers obligated to offer severance pay if implementing a mass layoff?

TECH SECTOR LAYOFFS
• Microsoft cutting 10,000 jobs
• Toronto employment lawyer with Global News on layoffs
• Alphabet cuts 12K jobs

Alex Lucifero, an Ottawa employment lawyer and Managing Partner at Samfiru Tumarkin LLP spoke with Patricia Boal on Newstalk 580 CFRA to answer these questions and offer insight for employees.

Interview Notes

• Next steps for employees in a mass layoff: Employees that have been part of a mass layoff by their employer should not agree to sign an initial offer of severance pay. Employees often mistakenly assume that the first offer of severance pay from their employer is adequate. Employees should seek legal advice from an employment lawyer before agreeing to a severance package.
• Employer obligations to severance in a mass layoff: Courts in Ontario have stated that employees that have been let go and are facing a downturn in the economy, could arguably be owed more severance due to the circumstances. Typically severance pay is based on the age of an employee, their position and years of service.
• Future job market prospects: Severance is offered in order to aid employees financially as they search for new employment. Employees involved in a mass layoff and facing a competitive job market would need additional severance pay as future employment could be more difficult to find.