Capcom Vancouver Closure: Employee Rights

Capcom Game Studio Vancouver announced on Sept. 18 that it’s closing its doors and laying off its 158 employees.

A spokesperson said it appreciates the contributions of all the staff — adding that terminated employees will be receiving severance packages.

Capcom Vancouver expects to record losses of about $52 million in the next six months from the cancellation of development projects.

A small team will remain in place until January to fully close down operations in Burnaby.

We’re sad to announce that effective today, Capcom Vancouver has suspended operations. We want to express our deepest thanks to our team and our fans for all your support.

— Capcom Vancouver (@CapcomVancouver) September 18, 2018

Capcom Vancouver Severance: Key Facts

Terminated Capcom Vancouver employees should keep in mind these very important facts where their severance is concerned:

You are likely owed more severance

Around 90 per cent of non-unionized employees are wrongfully dismissed when they are terminated from their job.

In other words, most people who are let go are not offered the severance that they are rightfully owed. Instead, they are offered terrible severance packages that often provide their minimum severance entitlements provided by the Employment Standards Act.

Often times, employers count on the fact that their employees may not know what their full severance entitlements are.

Employees are offered inadequate severance, with a (meaningless) deadline that exists only to pressure the employee into signing away their opportunity to have the offer reviewed.

Common law severance pay is based on several factors, including age, years of service, and position.

Based on those and other factors, severance entitlements can amount to as much as 24 months’ pay.

• The Truth About Severance Pay Deadlines

Working notice

Employers operating in B.C. who wish to terminate an employee “without cause” must provide either notice (working notice) or pay in lieu of notice, or severance pay/termination pay.

Working notice requires an employer to notify the employee that in a specific amount of time (days, weeks or even months) their employment will be terminated.

The employee is expected to continue working during this notice period, during which time they will continue to be paid the same amount pre-notice period.

Often times, employers will provide an employee with inadequate working notice. The amount of time provided does not take into account their full entitlements, as determined by age, position, length of service, and other factors as indicated by common law.

It is therefore extremely important to consult with an employment lawyer at Samfiru Tumarkin LLP to determine if the working notice is adequate.

If it isn’t, your employer may be required to provide severance in addition to notice, in order to meet your full severance entitlements under common law.

You can’t change your mind after signing

Once you accept a severance package from Capcom and sign off on a document indicating that you have agreed to the notice and/or severance pay provided, you cannot change your mind.

Keep in mind that you will also forfeit your right to seek legal assistance with your severance package from an experienced lawyer at Samfiru Tumarkin LLP.

BEFORE YOU SIGN ANYTHING, use the Severance Pay Calculator to get an idea of what you might be owed.

Our Vancouver employment lawyers can provide you with the advice you need, and the compensation you deserve.

Disclaimer: The materials above are provided as general information about the rights of 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.