Cathay Pacific Layoffs and Severance Pay

Cathay Pacific is an international airline based in Hong Kong. It is one of the largest airlines in Asia and operates flights to over 190 destinations worldwide. The company provides passenger and cargo services, aiming to offer a premium travel experience to its customers.

Cathay Pacific has more than 21,000 employees globally, with hundreds employed in Canada. The airline offers a wide range of job opportunities across various departments and functions. Some common job types at the company include pilots, cabin crew, engineers, customer service representatives, operations staff, sales and marketing professionals, finance and accounting personnel, and IT specialists.

The history of Cathay Pacific dates back to 1946 when it was founded by American Roy C. Farrell and Australian Sydney H. de Kantzow. Initially, the airline focused on providing air transport services within Asia. Over the years, Cathay Pacific expanded its network and became a significant player in the global aviation industry. In 1997, Cathay Pacific acquired Dragonair, a regional airline, which further strengthened its presence in Asia.

Recent layoffs at Cathay Pacific

• October 2020: The Hong Kong carrier is laying off 6,000 workers and killing off its Cathay Dragon sister airline in response to the COVID-19 pandemic.

Severance for Cathay Pacific employees

In Canada, non-unionized employees at Cathay Pacific can get up to 24 months of severance pay when they are fired or laid off from their job. This includes individuals working full-time, part-time, and hourly in Ontario, Alberta, or B.C. In a recent case, a former Cathay Pacific employee was awarded $170K for being fired after working for the airline for 35 years.

Severance is the compensation a non-unionized worker in Canada receives from their employer when they are fired without cause.

Even if you are fired for cause, it’s very likely that you are still entitled to full severance pay because employees often don’t meet the conditions necessary for this type of dismissal.

LEARN MORE
• Severance for provincially regulated employees
• Severance packages in mass layoffs

Many companies anticipate that their employees are largely unaware of their right to severance. In other cases, employers are legitimately unaware of their obligations to workers during the termination process.

Regardless of a company’s grasp on employment law, they are legally required to provide proper compensation following a termination.

This concept applies during challenging economic conditions, downsizing, the closure of a business, or major public health events such as the COVID-19 pandemic.

WATCH: Employment lawyer Lior Samfiru explains everything you need to know about severance pay on an episode of the Employment Law Show.

The employment lawyers at Samfiru Tumarkin LLP have represented numerous airline industry employees over the years in severance package negotiations.

We have successfully secured much larger amounts for individuals employed across a variety of positions, from entry level jobs to executives.

How to properly calculate severance pay

Employers often incorrectly calculate severance pay. There is a belief that severance pay is one week’s pay, two weeks’ pay, or a week for every year of service an employee has with the company.

For non-unionized employees, the main factors of termination or severance pay include age, length of service, position, bonuses, benefits, and the ability to find new work.

If you work at Cathay Pacific, you are likely a federally regulated employee. That means your severance package must consider:

• Your minimum severance as a federally regulated employee, as set out by the Canada Labour Code.
• Your full severance pay according to our legal system (common law) which can be as much as 24 months’ pay.

To figure out how much compensation you may be entitled to, use our firm’s Severance Pay Calculator.

ADDITIONAL RESOURCES
• Severance Pay in Ontario
• Alberta severance packages
• Understanding severance in B.C.
• Layoffs in Canada

Don’t sign on the dotted line!

Do not accept any severance offer, termination papers, or exit agreement that Cathay Pacific may provide you with.

Once you sign back these documents, you eliminate your ability to negotiate a fair and proper severance package.

Wrongfully dismissed from Cathay Pacific?

If you have lost your job at Cathay Pacific, there is a chance that you have been wrongfully dismissed.

A wrongful dismissal in Canada happens when you are fired or permanently laid off by your employer, but aren’t given a proper severance package.

What you should receive is based on many factors. An employment lawyer at Samfiru Tumarkin LLP can analyze your situation and explain how much compensation you may be owed.

Fired “for cause” by Cathay Pacific?

In Canada, termination for cause is reserved for the worst kinds of workplace offences, such as theft, misconduct, and assault.

If you are a non-unionized employee at Cathay Pacific who was fired for cause, the airline doesn’t have to provide you with a severance package and you can’t access Employment Insurance (EI) benefits.

However, to justify this type of dismissal, Cathay Pacific would have to prove:

• Progressive disciplinary measures were applied
• A less severe punishment would be inappropriate

Since it’s very difficult for companies to prove cause, non-unionized employees are often owed full severance pay.

If you are fired for cause for any reason, contact an experienced employment lawyer at Samfiru Tumarkin LLP immediately.

We can review your situation, enforce your rights, and help you secure the compensation you deserve.

Fired after a performance review?

If you are a non-unionized employee at Cathay Pacific who was fired after being put on a Performance Improvement Plan (PIP), you could still be entitled to severance pay.

Companies use PIPs to justify letting you go, sometimes without full severance, if you don’t complete it successfully.

However, employers in Canada don’t automatically have the right to fire you, especially for cause, if you fail to meet the requirements outlined in the PIP.

Companies often set unrealistic goals that are extremely difficult to achieve, or don’t give you the proper support to improve your work.

If you were fired following a “bad” performance review, or for failing a PIP, our firm can help you determine how much compensation you may be owed.

Changes to your job

Non-unionized employees at Cathay Pacific don’t have to accept major changes to their job.

Large modifications such as a demotion, cut in pay, reduction in hours, or negative change to commission are illegal.

When the terms of your employment are significantly changed, the law allows you to resign from your job and seek full severance pay through a constructive dismissal claim.

ADDITIONAL RESOURCES
• Changes to your employment in Ontario
• B.C. employees and changes to your job
• Can your employer change your job in Alberta

Temporary layoffs

Temporary layoffs occur when an employer significantly reduces or completely stops an employee’s employment.

There is usually a mutual understanding from both sides that the employee will be called back to work, to the same position, after a reasonable period of time.

It’s important for non-unionized employees at Cathay Pacific to understand that temporary layoffs are considered illegal, unless you agree to the layoff or it’s addressed in your employment contract.

You have the option to wait to be called back, or can treat this as a termination through a constructive dismissal and pursue severance.

Harassment

Non-unionized employees at Cathay Pacific don’t have to tolerate harassment in the workplace, either from coworkers or managers.

The airline, like any employer, has a duty to investigate and respond appropriately to allegations of harassment and abuse.

If your company is creating, or allows for the creation of, a hostile or toxic work environment, this can be grounds for a constructive dismissal.

Contact an employment lawyer at Samfiru Tumarkin today to explore your rights.

Independent contractor? Think again

If you were hired by Cathay Pacific as an independent contractor, there is a significant chance that you should actually be considered an employee.

Employers may misclassify employees as contractors to avoid acknowledging certain employment rights, like minimum wage, vacation and overtime pay, and severance when the individual is fired.

An employer can’t avoid the issue by having their worker sign an employment contract, which indicates that they are a contractor rather than an employee.

Our legal system provides guidelines for determining whether someone is a contractor or employee.

Use Samfiru Tumarkin LLP’s Pocket Employment Lawyer to find out what you are right now.

Fired for medical reasons

If your medical condition was in any way a factor in your employer’s decision to fire you while you are on leave, you may be able to file a human rights claim. Your employer can’t let you go due to medical issues or a disability.

If an employee is terminated without cause for reasons unrelated to their medical leave or disability, this is legally permissible, as long as the employer provides them with proper severance pay.

An employer may also legally terminate their worker while on medical leave if the employee is:

• Terminated for reasons which sufficiently establish just cause
• The employee’s employment contract has been frustrated

Long-term disability denied? Don’t appeal

If you are a Cathay Pacific employee, and your long-term disability claim is denied by your insurance provider, you will likely receive a letter inviting you to appeal the decision.

While it might seem like a good idea to do so, in almost all cases, the appeals process will be handled by the same insurer that denied your claim.

Insurance companies make money by not paying claims. They often use the appeals process (sometimes leading claimants to request multiple appeals) to run out the clock on your ability to file a claim against them to get the money you are owed.

If your long-term disability claim is denied, cut off, or comes under “investigation”, contact Samfiru Tumarkin LLP immediately.

LEARN MORE
• Appealing a long-term disability claim denial
• Disability in the Workplace: Your Rights

Employment lawyers for Cathay Pacific employees

The experienced employment law team at Samfiru Tumarkin LLP has helped tens of thousands of non-unionized individuals across the country.

Our lawyers in Ontario, Alberta, and B.C. stand ready to help you solve your workplace issues.

If you are a non-unionized employee at Cathay Pacific who needs help with an employment issue, contact us or call 1-855-821-5900 to get the advice you need, and the compensation you deserve.