Boomer exodus creating employee-favoured job market: Know your rights

Employers across the country are scrambling to fill job vacancies as scores of baby boomers exit the workforce.

According to recent data from Statistics Canada, the unemployment-to-job vacancy ratio, which compares Canadians looking for work to the number of available jobs, remains near historic lows in every province. A number of industries are having a tough time recruiting skilled workers including:

• Construction
• Manufacturing
• Food services/hospitality (hotels, restaurants, bars, etc.)

With individuals 55 and older steadily exiting the workforce, economists say there are not enough younger workers to replace them. They add that the data is pointing to the emergence of an “employees’ market”, which could help Canadians negotiate more favourable employment contracts since demand is high.

What you need to know about employment contracts

A new job means a new employment contract. This document lays out a variety of details including:

• Pay
• Responsibilities of the position
• Workplace policies

An employment agreement usually outlines the terms of the relationship between an employee and an employer, and what could happen if they are let go. It can also limit your future opportunities, severance entitlements, as well as whether you can start your own business when you leave the company.

READ MORE
• Starting a new job? Here’s how an employment contract could limit your rights

WATCH: Employment lawyer Lior Samfiru explains why workers are likely better off NOT signing an employment contract on an episode of the Employment Law Show.

Can my employer extend my probationary period?

At almost every job, employees have to go through a probationary period before their employment becomes permanent. Probation generally lasts three months, but workers should watch out for employment contracts that try to extend that period.

If your employer tries to extend your probation in your contract, they must explain how you will be evaluated during that extended period. If you are subject to an “extended” probationary period, you are owed severance pay if your company decides to let you go after three months.

Do I get severance pay if I retire?

Typically, employees do not get compensation if they quit, resign, or retire from their job voluntarily. When you decide to end or leave the employment relationship with your employer, it is a situation that is out of their control. As a result, they do not owe you any severance.

What an employer cannot do is tell or pressure you to retire from your job. You can be asked if you are planning to retire, but the company cannot push you out or tell you that you do not belong anymore. That becomes harassment and potentially a human rights violation.

READ MORE
• Age Discrimination: Retirement Rights for Older Employees
• What is workplace discrimination?
• How to Calculate Severance Pay

Can I be penalized for not retiring?

Your employer cannot punish you or make significant changes to your job because you do not want to retire yet. It is illegal to make major modifications to your employment and it can be treated as a termination of your relationship with the company. An employment lawyer at our firm can pursue a constructive dismissal claim to ensure you receive full severance pay.

Forced to resign or retire? Speak to an employment lawyer today

You do not need to resign or retire if your employer asks you to. There is no advantage to resigning over being let go. Before you agree to retire, you should connect with an employment lawyer first to discover your rights.

If you are asked to resign, and decide to do so, make sure you:

• Get in writing that you are being forced to resign
• Make it clear in your resignation letter that you are only resigning because your employer is forcing you to do so

If you are being forced to resign, contact the experienced employment law team at Samfiru Tumarkin LLP immediately. Our firm will review your legal options and ensure you receive the compensation you are owed.