Alex Lucifero on employee rights in the event of a layoff

Interview Summary

Shopify has recently announced another mass layoff and reportedly offered approximately 16 weeks of severance pay to employees. What should employees expect from their former employers? Can those on an IDEL layoff pursue severance once the leave expires?

Alex Lucifero, an Ottawa employment lawyer and Managing Partner at Samfiru Tumarkin LLP joins Matt Harris on Newstalk 580 CFRA to answer this question and more.

Interview Notes

• Concerns for former Shopify employees: Across all industries, not exclusively Shopify, cracks in the business lead to layoffs and terminations for employees. It seems Shopify is applying an across-the-board formula for severance for all employees. Severance is typically different for every employee based on their age, years of service and position.
• Earlier Shopify layoffs offered less severance: There have been reports of Shopify employees who were let go prior to the mass layoff being offered less severance. It is important to review employment contracts, particularly for new employees as there could be language that affects severance entitlements.
• Important steps when terminated or laid off: It is often an emotional and stressful time for those who are laid off and what comes next is vital in determining an employee’s entitlements. It is considered a traumatic experience for many and this can lead to rash decisions. Employees should not sign anything on the spot presented to them by their employers.
• IDEL expiring for employees on a layoff due to COVID-19: The Infectious Disease Emergency Leave is finally set to expire on July 30th, 2022. This leave allowed for employers to place employees on a layoff if it was related to the pandemic. The important thing to remember for those placed on an IDEL layoff was that the layoff could not be forced and an employee had to consent to the layoff.
• Employees are not recalled after IDEL expires: Employees who are not called back to work by their employers once IDEL expires have been effectively terminated and can pursue their rights to severance pay.