Canada Revenue Agency fires 330 employees following CERB review

What’s going on at the CRA?

The Canada Revenue Agency (CRA) has fired 330 employees for inappropriately claiming the Canada Emergency Response Benefit (CERB) during the COVID-19 pandemic.

According to The Canadian Press, this is the CRA’s “final update” after launching its internal CERB review back in June 2023.

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• 65 CRA workers axed in December for ‘inappropriately’ claiming CERB
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In addition to the terminations, the agency said 40 individuals faced disciplinary action, such as suspension.

All CRA employees who inappropriately claimed CERB are required to pay back the benefits that they received.

No shortage of major layoffs

The workforce reduction at the CRA comes amid a flurry of job cuts in 2024.

Big names, including Boeing, Deloitte, Loblaw, Ricoh, ApplyBoard, Qualcomm, Flexport, Atlantic Music Group, and IBM, have pulled out the axe as they continue to navigate challenging economic conditions.

SEE ALSO
• Amazon Layoffs: Nearly 14,000 managers could be axed to cut costs
• Air Transat considering job cuts amid financial turbulence 
• Where are layoffs happening in Canada?

While it remains unclear if the CRA has terminated both unionized and non-unionized workers, it’s important for non-unionized employees to understand their rights when they are fired or let go.

Employee rights during a termination

In Canada, non-unionized employees can be fired for any reason, as long as they are provided full severance pay and the reasons for their dismissal aren’t discriminatory. This is known as a termination without cause.

WATCH: Employment lawyer Lior Samfiru explains what rights employees have if they are being fired or let go on an episode of the Employment Law Show.

However, there are some situations where companies have grounds to fire staff for cause–meaning no severance package or access to Employment Insurance (EI) benefits.

Considered the “capital punishment” of employment law, this type of dismissal is reserved for the worst kinds of workplace offences such as:

• Serious insubordination
• Theft
• Assault

To justify terminating you for cause, your boss would have to prove progressive disciplinary measures were applied and that a lesser penalty wouldn’t be acceptable, which is very difficult to do.

In our experience, most non-unionized employees don’t meet the conditions necessary for this type of dismissal and are entitled to severance pay.

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• Do I have to look for a new job after getting fired?
• Can I get my job back after I am fired?
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How is severance pay calculated?

Severance for non-unionized employees in Canada can be as much as 24 months’ pay.

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

The amount of compensation you are entitled to is calculated using several factors, including:

To figure out how much you could be owed, use our firm’s free Severance Pay Calculator. It has helped millions of Canadians determine their severance 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.

We regularly resolve wrongful dismissal claims and can help you secure proper severance.

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

Lost your job? Speak with an employment lawyer

If you are fired or let go for any reason, contact the experienced employment law team at Samfiru Tumarkin LLP.

Our lawyers in Ontario, Alberta, and B.C. have helped tens of thousands of non-unionized individuals resolve their workplace issues.

We can review your situation, assess your legal options, and help you secure the compensation you deserve.

Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is not specific to any one company and should not be read as suggesting any improper conduct on the part of any specific employer, or a relationship between Samfiru Tumarkin LLP and a specific employer.