PwC Layoffs & Severance Scrutiny: Employment Lawyer talks to The Globe and Mail

Major accounting firm PricewaterhouseCoopers (PwC) recently confirmed a significant reduction to their Canadian workforce.

This announcement has led to many former employees seeking legal advice as they believe they were not given adequate severance upon termination.

Fiona Martyn, a Toronto employment lawyer and Associate at Samfiru Tumarkin LLP, spoke with The Globe and Mail regarding the layoffs and discussed the concerns former PwC employees had.

“They have been told it is a restructuring and they have been offered not fantastic packages,” Martyn said. “They are not insultingly low offers, but they are also not incredibly reasonable or incredibly fair, especially when looking at some of the factors that the courts will look at.”

Martyn went on to explain that some severance offers were not in line with common employment law.

“That is what applies in cases where employees didn’t sign enforceable contracts or they didn’t sign a contract at all, and my understanding with the PwC situation is that has been the case where people did not sign off on enforceable termination clauses and so they are entitled to what is known as common law reasonable notice.”

Martyn reiterated the importance of considering future employment for terminated employees, as it factors into severance packages significantly.

“I think these packages underestimate, especially given these terminations are taking place close to the holidays, how long it will take for someone to find a comparable new job,” she stated.

“There is certainly some room for movement here.”