Employment lawyer talks employee rights during a recession

Interview Summary

Discussions surrounding a possible recession have arisen across the province with raising interest rates and continuing layoffs. What are an employee’s rights if their employer is experiencing financial difficulties? What can employees do to protect their rights if a recession occurs?

Alex Lucifero, an Ottawa employment lawyer and Managing Partner at Samfiru Tumarkin LLP joins CTV News Matt Skube to discuss employee rights in the event of a recession.

Interview Notes

• Job changes as a result of a recession: Employers seem to be restructuring and preparing for a recession. Employers require an employee’s consent to make significant changes to the terms of employment and employees are within their rights to refuse. A major change, such as a reduction in pay can lead to constructive dismissal.
• Economic downturn as the reason for termination: An employer can let an employee go as a result of financial difficulties. Employers can terminate employees for any reason as long as it is not discriminatory and adequate severance pay is offered.
• Severance pay influenced by the recession: Employers have the same obligations in regard to severance despite a recession or financial difficulties. Severance pay is based on an employee’s position, age, and length of service. In the event an employer has declared bankruptcy, an employee might not be able to pursue their severance entitlements.