Study: Canadian tech workers paid 46% less than U.S. counterparts

A new study has revealed a staggering wage gap between Canadian tech workers and their American counterparts.

Researchers from The Dais public policy institute at Toronto Metropolitan University (TMU) found that the typical tech sector employee in Canada makes $83,700 annually compared to $122,600 for U.S. workers — approximately 46 per cent less.

When examining only full-time and full-year staff in both countries, the overall wage gap shrank by 10 per cent.

“Although the large gap in tech workers’ compensation between the U.S. and Canada is a glaring issue, achieving a competitive tech labour market involves much more than just equating compensation levels,” the report reads.

“[In order to] build a thriving and competitive tech industry in Canada, it is important to do so responsibly, which includes ensuring that the relatively larger disparity in racial and gender wage outcomes that exists in the U.S. tech industry is not replicated in Canada.”

To address this issue, the authors of the TMU study recommend:

• Boosting growth in the tech ecosystem
• Developing fair, equitable, and competitive distribution

The report also found that non-wage compensation for U.S. tech workers, such as equity holdings, were valued at twice that of their Canadian counterparts in some cases.

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Can I ask my boss for a raise?

Non-unionized workers in Canada, including those in the tech sector, can ask their employer for a raise.

However, in provinces such as Ontario, companies aren’t required to increase an employee’s salary on an annual basis. The decision to raise an individual’s wages is up to the employer.

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Can my boss make major changes to my job if I ask for a raise?

The short answer is no. Your employer can’t make significant adjustments to the terms of your employment if you ask for a raise.

Major modifications, such as a demotion, workload increase, or pay cut, are illegal in Canada.

WATCH: Employment lawyer Lior Samfiru explains what non-unionized workers need to know about changes to their job on an episode of the Employment Law Show.

If unwanted changes are made to your job after asking for a raise, or for any reason, there is a very good chance that you can treat it as a constructive dismissal.

In this situation, the law allows you to resign and pursue full severance pay.

However, you shouldn’t quit your job before speaking with an experienced employment lawyer at Samfiru Tumarkin LLP.

We can confirm that you have been constructively dismissed, assess your legal options, and help you secure the compensation you are owed.

ADDITIONAL RESOURCES
• Changes to your job in Ontario: Employee rights
• What Albertans need to know about changes to their job
• Changes to your employment in B.C.: Your rights

How is severance pay calculated?

In Canada, severance for non-unionized employees 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:

• Age
• Length of service
• Position at the company
• Ability to find new work

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 company doesn’t provide you with the correct amount, you have been wrongfully dismissed and should contact Samfiru Tumarkin LLP immediately.

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

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• Severance pay for provincially regulated employees
• Rights to severance for federally regulated workers
• Severance packages in a recession

My boss is pressuring me to quit after asking for a raise, what should I do?

While your employer might be upset that you asked for a raise, the company can’t pressure or force you to resign.

If your boss is encouraging you to step down, document their attempts. Keep any letters, emails, or text messages that show how the company is pressuring you to quit your job.

Once you have gathered all of the relevant documents, don’t resign before contacting our firm. You might have grounds for a constructive dismissal claim.

Already resigned?

If you were forced to quit your job for any reason, connect with an experienced employment lawyer at Samfiru Tumarkin LLP as soon as possible.

In addition to severance pay, you could be owed compensation for any damages associated with the end of your employment.

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• Employment Law Show: Facts about forced resignations
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Can my boss fire me if I ask for a raise?

While many people consider it cruel and inappropriate, employers in Canada can fire non-unionized workers after they ask for a raise.

This is known as a termination without cause. You can be let go for any reason, as long as:

• You are provided full severance pay
• The reasons for your dismissal aren’t discriminatory

However, it’s very unlikely that your boss would be able to fire you for cause in this situation — meaning no severance package or access to Employment Insurance (EI) benefits.

Considered the harshest punishment in a company’s arsenal, this type of dismissal is reserved for the most serious workplace offences, such as blatant disobedience, fraud, or assault.

To justify firing you for cause, your employer must prove progressive disciplinary measures were applied and that a lesser penalty wouldn’t be acceptable, which is very hard 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 if I am fired?
• Employment Law Show: Facts about the termination process

Lost your job? Speak with an employment lawyer

If you are fired or let go after asking for a raise, or 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, enforce your rights, and ensure that you receive the compensation you are owed.