Lior Samfiru on employees switching jobs and the impact of a potential recession

Rising interest rates and a fear of a recession looming have many experts cautioning employees looking to change jobs despite the fact that the labour market appears to favour employees.

Discussing the options available to employees who have recently begun new employment, Lior Samfiru, an employment lawyer and national co-managing partner at Samfiru Tumarkin LLP tells the Globe and Mail of the importance of employee seniority in certain situations.

“The longer you work [at that company], the older you are, and the more senior a position you have, generally the greater severance you’re owed,” Lior states. “Employees that have been with the company for a long time will have substantial severance entitlements – as much as two-year’s pay.”

Samfiru goes on to explain that some employees are more expensive to let go of than others.

“If I have two decent employees and I need to let one of them go, it often comes down to who is going to be more expensive, and that has to do with seniority,” says Samfiru. “It is definitely something employees have to consider; if you’re a newer employee and therefore cheaper to let go, you may be the first on the chopping block.”

Samfiru warns employees that when beginning a new position they should always take into account future severance possibilities.

“It would be a very bad situation for someone to leave a job where they’re senior and would be owed a significant amount if they lose their job to take one where they’re essentially going to be owed almost nothing if they lose their job,” Samfiru explains. “That’s risky.”

Ultimately Samfiru warns employees that employers are beginning to include increasingly restrictive terminology in their employment contracts and that employees should always be wary before signing any documentation.