Client Win: 7-year Ontario contractor secures substantial severance package

Lefor v. Canada Suites Ltd., et al

Samfiru Tumarkin LLP secured more than $25,000 in damages for our client, Mark Lefor, in the case of Lefor v. Canada Suites Ltd., et al, a matter that was heard at the Ontario Small Claims Court.

Associate Teilen Celentano, assisted by Partner Stan Fainzilberg and Articling Student Melanie Vincent, successfully argued that Lefor was a dependent contractor when he was terminated after rejecting a pay cut — entitling him to severance pay.

LEARN MORE
• Independent contractors in Ontario: What you need to know
• Changes to your job in Ontario: Employee rights
• Employment Law Show: Facts about the termination process

WATCH: Employment lawyer Lior Samfiru discusses employee misclassification on an episode of the Employment Law Show.

What you need to know

• In August 2013, Lefor begins working for Canada Suites — classified as an independent contractor.
• Throughout his seven years with Canada Suites, Lefor was directed to submit semi-monthly invoices for approval and payment.
• Over the years, Lefor was promoted to the position of General Manager.
• In the spring of 2020, Canada Suites attempted to reduce Lefor’s compensation. When he refused, the company terminated him without severance pay — citing his classification as an independent contractor.
• Confident that he had been wrongfully dismissed, Lefor contacted the experienced employment law team at Samfiru Tumarkin LLP.

The court’s decision

The Ontario Small Claims Court agreed with Samfiru Tumarkin LLP’s argument that Lefor had been wrongfully dismissed.

When calculating severance pay, the court took into consideration his age, tenure, and managerial position — determining that nine months of compensation was fair.

After accounting for Lefor’s mitigation earnings, Deputy Judge Anne McNeely concluded that he was entitled to $25,436.34, plus costs and interest.

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• Severance Pay Calculator: Determine your entitlements today
• Should I negotiate my own severance package in Ontario?
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Unique severance situation

The court rejected the “rule of thumb” that non-unionized employees in Ontario should only receive one month of severance pay for every year of service.

“The courts have been clear that such a ‘rule of thumb’ is not the yardstick for measuring notice periods,” Deputy Judge McNeely said in the ruling — adding that much of this rule has a “life of its own and continues to be argued by parties.”

CERB didn’t affect compensation

Due to a “lack of certainty” on matters involving the Canada Emergency Response Benefit (CERB), the court decided against deducting it from Lefor’s severance award.

Samfiru Tumarkin LLP was involved in the country’s first-ever appellate decision to address whether CERB should be subtracted from an employee’s severance package for wrongful dismissal.

SEE ALSO
• B.C. sales clerk awarded $30K, CERB not deducted
• Employment lawyer talks paying back CERB on 980 CKNW

Key takeaway for employees

• You don’t have to accept substantial changes to your job: Lefor’s victory serves as a reminder that companies in Canada can’t make major changes to the terms of an individual’s employment without their consent. If this happens to you, contact an experienced employment lawyer at Samfiru Tumarkin LLP. We can confirm that you’ve been constructively dismissed and help you secure the compensation you deserve.

Key takeaways for employers

• Contractors can be entitled to severance: Courts look beyond an individual’s “on paper” classification. Therefore, a worker may still be entitled severance pay — even if they’ve signed an employment contract designating them as independent contractor.
• Consult an employment lawyer before firing an individual: Employers in Ontario should always seek legal counsel before proceeding with a termination without cause or for cause. Since each employment matter is unique, a thorough review by our team will ensure that laws aren’t being broken and that the employee’s rights have been taken into account.

Other client wins to check out

• $157,000 for Ontario youth coordinator after contract cut short
• Full severance for Ontario dental receptionist despite termination clause
• Ontario ‘road boss’ constructively dismissed, awarded over $320K
• Office admin awarded nearly $85K in wrongful dismissal case
• Ontario welder sparks justice after 36 years of service snuffed out

Workplace issue? Contact us

Since 2007, the experienced employment law team at Samfiru Tumarkin LLP has helped tens of thousands of non-unionized individuals resolve their workplace issues.

Whether you’re in Ontario, Alberta, or B.C., our lawyers can review your situation, enforce your rights, and ensure that you receive the compensation you deserve.