Canada increasing working notice for federally regulated employees on Feb. 1

On Feb. 1, 2024, federally regulated employers will have to provide most employees with more working notice of termination or pay in lieu of notice (severance pay).

These amendments to the Canada Labour Code (CLC) were initially introduced five years ago in the Budget Implementation Act, 2018, No. 2.

Currently, federally regulated staff members who have completed three consecutive months of employment are owed at least two weeks of working notice or two weeks of severance pay.

In addition to more working notice, the CLC will require companies to provide dismissed staff with a written statement of benefits.

This document must outline the individual’s vacation benefits, wages, severance pay, and any other notable benefits. It can’t be provided after the date of termination.

WATCH: Employment lawyer Lior Samfiru breaks down everything you need to know about working notice on an episode of the Employment Law Show.

Does the working notice change apply to all federally regulated employees?

The short answer is no. The following federally regulated employees aren’t entitled to more working notice:

• Staff who haven’t completed three consecutive months of employment
• Employees who resigned or were terminated for cause
• Workers on a temporary layoff that doesn’t constitute a dismissal

If you are a federally regulated employee working on a fixed-term contract that provides a specific end date, it’s likely these CLC changes don’t apply to you.

SEE ALSO
• List of federally regulated companies in Canada
• Federally regulated industries and workplaces
• Federal minimum wage in Canada

Severance pay in Canada

In Canada, non-unionized employees are owed full severance pay when they are fired without cause or let go.

This includes individuals working full-time, part-time, or hourly in Ontario, Alberta, and B.C.

Severance can be as much as 24 months’ pay, depending on a variety of factors.

Terminated for cause?

If you were fired for cause, it’s possible that you are still entitled to full severance pay.

In many cases, non-unionized employees don’t meet the criteria necessary for this type of dismissal.

Regardless of a company’s grasp on employment law, they are legally required to provide proper compensation following a termination.

This concept applies during challenging economic conditions, downsizing, the closure of a business, or major public health events such as the COVID-19 pandemic.

LEARN MORE
• Severance pay for federally regulated employees
• Rights to severance for provincially regulated workers
• Severance packages during mass layoffs

Does working notice affect severance?

If a non-unionized employee in Canada receives working notice, it can affect how much severance pay they are owed when the working notice period ends.

• Example: You are entitled to 14 months of severance pay if you are fired or let go immediately. One day, your employer gives you seven months of working notice. When the working notice period ends, the company will owe you seven months of severance instead of 14 months.

Similar to calculating severance pay, the length of the working notice period is determined using various factors, including salary, position, how long you have worked for the company, and your ability to find similar employment.

If you believe that your employer didn’t provide you with the correct amount of working notice or severance, contact an experienced employment lawyer at Samfiru Tumarkin LLP.

We can determine if you have been wrongfully dismissed and help you secure the compensation you are owed.

SEE ALSO
• Severance Pay Calculator: Determine your entitlements
• Employment Law Show: Things to never do before seeking legal counsel
• Employment Law Show: Major mistakes employers make

Can my boss make major changes to my job after providing me with working notice?

Non-unionized workers in Canada don’t have to accept significant adjustments to the terms of their employment after receiving working notice.

Major modifications, such as demotion, pay cut, and workload increase, are illegal in the country.

If substantial changes are made to your job after receiving working notice, there is a very good chance that you can treat it as a constructive dismissal.

In this situation, the law allows you to resign and pursue full severance pay.

However, you shouldn’t quit your job until a member of our team confirms that you have been constructively dismissed.

ADDITIONAL RESOURCES
• Changes to your job in Ontario: What employees need to know
• What Albertans need to know about changes to their job
• Changes to your employment in B.C.: Employee rights

My boss is pressuring me to quit after providing working notice, what should I do?

Employers in Canada can’t pressure or force non-unionized employees to resign after providing working notice.

If your employer is encouraging you to step down, document their attempts. Keep any letters, emails, or text messages that show how the company is pressuring you to quit your job.

Once you have gathered all of the relevant documents, don’t resign before contacting an experienced employment lawyer at Samfiru Tumarkin LLP. You might have grounds for a constructive dismissal claim.

Already resigned?

If you were forced to quit your job after receiving working notice, or for any reason, reach out to our firm as soon as possible.

In addition to severance pay, you could be owed compensation for any damages associated with the end of your employment.

LEARN MORE
• Employment Law Show: Facts about forced resignations
• Employment Law Show: What your employer legally can’t do
• Employment Law Show: Situations that trigger legal disputes

Lost your job? Speak with an employment lawyer

The experienced employment law team at Samfiru Tumarkin LLP has helped tens of thousands of non-unionized individuals resolve their workplace issues.

Our lawyers in Ontario, Alberta, and B.C. can review your situation, enforce your rights, and ensure that you receive the compensation you are owed.