Ford Canada: Severance Packages
![ford-canada-severance-package A blue car is parked in front of a reflective glass facade, with a setting sun in the background. Ford Canada employees are entitled to full severance when they lose their job.](https://stlawyers.ca/wp-content/uploads/2022/08/ford-canada-severance-package-1200x625.jpg)
Ford Motor Co. is a U.S.-based multinational automaker that develops trucks, sport utility vehicles, commercial vans, cars, as well as connected services. Founded in 1903, the company employs a global workforce of approximately 182,000 people.
Headquartered in Dearborn, Michigan, Ford has operations across North America and in more than 125 countries around the world.
According to the company’s website, it continues to produce millions of vehicles each year. Ford remans one of the largest publicly-traded American automotive companies (by market capitalization).
Latest layoffs at Ford
- April 2024: Ford is delaying EV production at its Oakville plant and extending layoffs for 2,700 workers to 2027.
- June 2023: Ford is eliminating engineering jobs in Canada and the U.S. as part of its Ford+ restructuring plan.
- August 2022: Ford is laying off approximately 3,000 non-unionized workers in a bid to lower costs as it shifts its focus to electric vehicles.
- September 2020: Ford is looking to cut 1,400 jobs in North America. The decision comes as the automaker attempts to reduce its losses and get an $11 billion restructuring program on track.
- May 2019: Ford is laying off 10 per cent of its global salaried workforce, approximately 7,000 workers, as part of a restructuring plan designed to save the company $600 million annually.
Severance pay for Ford employees
In Canada, non-unionized employees at Ford can get up to 24 months of severance pay when they are fired or laid off from their job. This applies to individuals working in any capacity—full-time, part-time, or hourly—in Ontario, Alberta, and British Columbia.
Severance is the compensation provided to non-unionized workers in Canada by their employer when they are terminated without cause.
Even if an employee is fired for cause, they may still be eligible for full severance pay. This is due to the high standards required to legally justify for-cause dismissal.
LEARN MORE
• Severance for provincially regulated employees
• Severance pay by company
• Federally regulated employees and severance pay
• Severance packages in mass layoffs
The right to severance pay is consistent regardless of economic conditions, company downsizing, business closures, or significant 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 tens of thousands of employees over the years in severance package negotiations.
We have successfully secured much larger amounts for countless individuals employed across a variety of positions, from entry level jobs to executives.
How to properly calculate severance pay
There is a general belief that severance is one week’s pay, two weeks’ pay, or a week for every year of service an employee has with a company.
The reality is that severance for non-unionized employees in Canada is calculated using a variety of factors, including age, length of service, position, bonuses, benefits, and your ability to find new work.
To figure out how much compensation you may be entitled to, use our firm’s Pocket Employment Lawyer.
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 you receive. Once you sign back these documents, you eliminate your ability to negotiate additional severance pay.
Generally speaking, if an employee does not receive the proper amount of severance pay when they lose their job, they may be considered to have been wrongfully dismissed. An employment lawyer at Samfiru Tumarkin LLP can analyze your situation and explain how much compensation you may be owed.
Talk to an employment lawyer
The experienced employment law team at Samfiru Tumarkin LLP has helped tens of thousands of non-unionized individuals across the country. In addition to severance package negotiations, our team has experience securing solutions for the following employment matters:
Our lawyers in Ontario, Alberta, and B.C. stand ready to help you solve your workplace issues.
If you are a non-unionized employee 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.
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.