Alex Lucifero on pandemic effect on severance pay

Interview Summary

Due to the ongoing pandemic and financial difficulties many workplaces have experienced, employers have struggled and had to restructure leading to a rise in terminations. Many employees and employers are wondering what they are entitled to offer and receive. Does COVID-19 ultimately affect what employees are owed if terminated?

Alex Lucifero, an Ottawa employment lawyer and Managing Partner at Samfiru Tumarkin LLP joins Matt Skube on CTV News Ottawa to answer this question and more on severance entitlements.

Interview Notes

What is severance pay and who is entitled to it?

Severance pay is compensation an employee is owed when they are terminated without cause. Severance pay can encompass various factors and is typically based on an employee’s age, length of employment and position. All non-unionized employees who are terminated without cause are owed severance entitlements.

Are employees still owed severance pay if they are terminated or laid off due to COVID-19?

Despite the pandemic, employees are still entitled to their full severance compensation. In many cases, due to the pandemic, employees could be owed potentially more severance as there are economic difficulties in finding future employment.

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• Severance Pay in Ontario

In what situations could employees not be entitled to severance?

Severance is calculated differently for unionized employees and is limited to the terms of their collective agreement. Employees who are non-unionized but terminated for cause would also not be entitled to severance however it is very difficult to prove termination with cause. Employees are often wrongfully terminated for causes due to minor errors and poor performance and should contact an employment lawyer as soon as possible.