Severance Pay for Software Engineers

Software Engineers are an essential part of the Canadian technology industry, providing essential services to businesses and organizations. These technical workers design, develop, and maintain software systems, ensuring that applications function efficiently and effectively.

Key Responsibilities

• System Design: Create and plan software architecture to meet business requirements.
• Development: Write and test code, ensuring it aligns with the design specifications.
• Maintenance: Update and improve existing software to enhance performance and security.
• Collaboration: Work with cross-functional teams including product managers, designers, and other engineers to deliver high-quality software products.
• Documentation: Maintain detailed records of software design, development processes, and updates.
• Debugging: Identify and fix bugs or issues within the software to maintain optimal performance.
• Research and Development: Stay updated with the latest industry trends and technologies to innovate and improve software solutions.

The demand for software engineers in Canada varies by province and specialization. Generally, software engineers in fields such as artificial intelligence, cybersecurity, and data science tend to have higher demand and salaries. Related roles include web developers, programmers and IT technicians.

Salary

According to Glassdoor, the average salary of a software engineer is $100,000 per year in Canada. The average additional cash compensation for the role is $10,000. This amount varies based on factors such as experience, location, and the size of the firm they work for.

Fired or lost your job as a software engineer?

If you are fired or lose your job as a software engineer in Canada, you have employment rights, which includes the right to severance. This applies to non-unionized workers in either a provincially or federally regulated workplace.

Many companies anticipate that workers are largely unaware of their severance entitlements. In other cases, employers legitimately do not know what their obligations are to staff during the termination process.

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

READ MORE
• Layoffs in Canada
• Read reviews for our lawyers
• Severance packages by company

Severance pay for software engineers

In Canada, software engineers may be owed up to 24 months of severance pay when they are fired or laid off from their job. This applies to individuals working in any capacity—full-time, part-time, or hourly—in Ontario, Alberta, and British Columbia.

Severance is the compensation provided to non-unionized workers in Canada by their employer when they are terminated without cause.

Even if an employee is fired for cause, they may still be eligible for full severance pay. This is due to the high standards required to legally justify for-cause dismissal.

LEARN MORE
• Severance for provincially regulated employees
• Federally regulated employee severance packages
• Severance pay by job
• Severance packages in mass layoffs

Your employer has the option of setting your termination date in the future and having you work until that time (working notice) or providing you with compensation instead (severance).

These concepts apply during challenging economic conditions, downsizing, the closure of a business, or major public health events such as the COVID-19 pandemic.

WATCH: Employment lawyer Lior Samfiru explains everything you need to know about severance pay on an episode of the Employment Law Show.

The employment lawyers at Samfiru Tumarkin LLP have represented tens of thousands of employees over the years in severance package negotiations.

We have successfully secured much larger amounts for individuals employed across a variety of positions, from entry level jobs to executives.

How to properly calculate severance pay

There is a general belief that severance is one week’s pay, two weeks’ pay, or a week for every year of service an employee has with a company.

The reality is that severance for non-unionized employees in Canada is calculated using a variety of factors, including age, length of service, position, bonuses, benefits, and your ability to find new work.

ADDITIONAL RESOURCES
• Severance Pay in Ontario
• Alberta severance packages
• Understanding severance in B.C.
• Layoffs in Canada

Before accepting a severance offer, double-check the amount using our firm’s free Severance Pay Calculator. It has helped millions of Canadians determine their entitlements.

If your employer’s offer falls short of what our Severance Pay Calculator says you are owed, it’s very likely that you have been wrongfully dismissed and should contact an experienced employment lawyer at Samfiru Tumarkin LLP.

Don’t sign on the dotted line!

Do not accept any severance offer, termination papers, or exit agreement that you receive. Once you sign back these documents, you eliminate your ability to negotiate additional severance pay.

Non-unionized employees in Canada have up to two years from the date of their dismissal to pursue proper severance pay. An employer’s deadline to sign back a severance offer is not legally enforceable or binding.

Wrongfully dismissed?

If you lose your job as a software engineer, there is a chance that you have been wrongfully dismissed.

A wrongful dismissal in Canada happens when a non-unionized employee is fired or permanently laid off by their employer and are not given a proper severance package.

An employment lawyer at Samfiru Tumarkin LLP can analyze your situation and explain how much compensation you may be owed.

Changes to your job

If you are a software engineer in Canada, you don’t have to accept major changes to your job.

Large modifications such as a demotion, cut in pay, reduction in hours, or negative changes to commission are illegal.

When the terms of your employment are significantly changed, the law allows you to resign from your job and seek full severance pay through a constructive dismissal claim.

Temporary layoffs

Temporary layoffs occur when an employer significantly reduces or completely stops an employee’s employment.

There is usually a mutual understanding from both sides that the employee will be called back to work, to the same position, after a reasonable period of time.

It’s important for non-unionized software engineers in Canada to understand that temporary layoffs are considered illegal, unless you agree to the layoff or it’s addressed in your employment contract.

You have the option to wait to be called back, or can treat this as a termination through a constructive dismissal and pursue severance.

Harassment

In Canada, software engineers don’t have to tolerate any form of harassment in the workplace, from either coworkers or managers.

Employers must investigate and respond appropriately to allegations of harassment and abuse.

If your company is creating, or allows for the creation of, a hostile or toxic work environment, this could be grounds for a constructive dismissal.

Contact an employment lawyer at Samfiru Tumarkin to explore your rights.

Independent contractor? Think again

If you are a software engineer who was hired as an independent contractor, there is a significant chance that you should actually be considered an employee.

Employers in Canada may misclassify employees as contractors to avoid acknowledging certain employment rights like minimum wage, vacation and overtime pay, and severance when the individual is fired.

A company can’t avoid the issue by having an individual sign an employment contract, which indicates that they are a contractor rather than an employee.

Our legal system provides guidelines for determining whether someone is a contractor or employee.

Use Samfiru Tumarkin LLP’s Pocket Employment Lawyer to find out what you are right now.

Fired for medical reasons?

If your medical condition was in any way a factor in your employer’s decision to fire you while you are on leave, you may be able to file a human rights claim. Your employer can’t let you go due to medical issues or a disability.

If a non-unionized employee is terminated without cause for reasons unrelated to their medical leave or disability, this is legally permissible, as long as the company provides proper severance pay.

Your employer may also legally fire you while on medical leave if:

• You are dismissed for reasons which sufficiently establish just cause
• Your employment contract has been frustrated

Long-term disability denied? Don’t appeal

If you are a software engineer in Canada, and your long-term disability claim is denied by your insurance provider, you will likely receive a letter inviting you to appeal the decision.

While it might seem like a good idea to do so, in almost all cases, the appeals process will be handled by the same insurer that denied your claim.

Insurance companies make money by not paying claims. They often use the appeals process (sometimes leading claimants to request multiple appeals) to run out the clock on your ability to file a claim against them to get the money you are owed.

If your long-term disability claim is denied, cut off, or comes under “investigation”, contact Samfiru Tumarkin LLP immediately.

LEARN MORE
• Appealing a long-term disability claim denial
• Disability in the Workplace: Your Rights

Employment lawyers for software engineers

The experienced employment law team at Samfiru Tumarkin LLP has helped tens of thousands of non-unionized individuals across the country.

Our lawyers in Ontario, Alberta, and B.C. stand ready to help you solve your workplace issues.

If you are a software engineer who needs help with an employment issue, contact us or call 1-855-821-5900 to get the advice you need, and the compensation you deserve.