Microsoft: Severance Packages
Microsoft Inc. is a wholly-owned subsidiary of Microsoft Corporation (Microsoft), which is an American multinational technology company that produces personal computers, software, and a variety of consumer electronics.
Founded in 1985, the Canadian division of the tech giant employs nearly 5,000 full-time workers across the country.
Headquartered in Mississauga, Ontario, Microsoft has regional offices in several major cities, including Toronto, Montreal, Quebec City, Calgary, Edmonton, and Vancouver.
According to the company’s website, it has provided in-demand technology skilling to more than one million Canadians since 2020.
Recent layoffs at Microsoft
- September 2024: Microsoft Gaming has announced that it will lay off approximately 650 employees, representing about 3% of its global workforce.
- July 2024: Microsoft is cutting product and program management roles as it aims to maintain profit margins.
- June 2024: Microsoft is reportedly reducing the size of its Azure cloud and mixed reality units.
- May 2024: Microsoft’s Xbox is reportedly closing several game studios — including Alpha Dog Games in Canada.
- January 2024: Microsoft is cutting approximately nine per cent of its gaming division — affecting 1,900 Activision Blizzard, Xbox, and ZeniMax employees.
- October 2023: LinkedIn, the social media platform owned by Microsoft, is eliminating approximately 668 roles across its engineering, product, talent, and finance teams.
- June 2023: Microsoft is cutting 276 jobs in its home state of Washington. However, several Canadian workers reached out to Samfiru Tumarkin LLP — claiming that they were also let go.
- May 2023: LinkedIn announced that it’s laying off 716 employees and closing InCareer — its local jobs app in China.
- January 2023: Microsoft is cutting 10,000 jobs by March in a bid to reduce costs.
- October 2022: Microsoft confirmed to multiple news outlets that it’s laying off nearly 1,000 employees as it grapples with slowing revenue.
- July 2022: Microsoft is cutting less than one per cent of its workforce as part of a “strategic realignment.”
- July 2017: Microsoft announced that it’s laying off nearly 10 per cent of its total sales force as part of a major reorganization.
- May 2016: Microsoft is eliminating 1,850 jobs, signalling the end of its Nokia experiment.
- July 2015: Microsoft announced that it’s laying off approximately 7,800 workers from the smartphone unit it bought from Nokia in 2014.
Severance pay for Microsoft employees
In Canada, non-unionized employees at Microsoft may 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. Contractors may also be entitled to severance pay due to employee misclassification.
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 packages in mass layoffs
• How severance pay works by company
• Severance for federally regulated employees
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 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.
ADDITIONAL RESOURCES
• Severance Pay in Ontario
• Alberta severance packages
• Understanding severance in B.C.
• Layoffs in Canada
Before accepting a severance offer, double-check the amount using our firm’s free Severance Pay Calculator. It has helped millions of Canadians determine their entitlements.
If your employer’s offer falls short of what our Severance Pay Calculator says you are owed, it’s very likely that you have been wrongfully dismissed and should contact an experienced employment lawyer at Samfiru Tumarkin LLP.
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.
Non-unionized employees in Canada have up to two years from the date of their dismissal to pursue proper severance pay. An employer’s deadline to sign back a severance offer is not legally enforceable or binding.
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 non-unionized 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, or a relationship between Samfiru Tumarkin LLP and a specific employer.