Microsoft Canada: Severance Packages
Microsoft Canada 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 Canada 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 for Microsoft Canada employees
Employees at Microsoft Canada can get up to 24 months of severance pay when they are fired or laid off from their job. This includes individuals working full-time, part-time, and hourly in Ontario, Alberta, or B.C.
Severance is the compensation non-unionized workers in Canada receive from their employer when they are fired without cause. If you are fired for cause, you are likely still entitled to full severance.
LEARN MORE
• Severance for technology industry employees
• Severance for provincially regulated employees
• Severance packages in mass layoffs
Regardless of a company’s grasp on employment law, they are legally required to provide proper compensation following a termination.
WATCH: Employment lawyer Lior Samfiru explains everything you need to know about severance pay on an episode of the Employment Law Show.
All non-unionized employees at Microsoft Canada are entitled to severance pay during the COVID-19 pandemic if they are terminated or let go from their job.
A company doesn’t have the option of “suspending” their legal obligations due to the coronavirus outbreak.
ADDITIONAL RESOURCES
• Severance Pay in Ontario
• Alberta severance packages
• Understanding severance in B.C.
The employment lawyers at Samfiru Tumarkin LLP have represented numerous tech sector 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
Employers often incorrectly calculate severance pay. There is a belief that severance pay is one week’s pay, two weeks’ pay, or a week for every year of service an employee has with the company.
For non-unionized employees, the main factors of termination or severance pay include age, length of service, position, bonuses, benefits, and the ability to find new work.
If you work at Microsoft Canada, you are likely a provincially regulated employee. That means your severance package must consider:
- Your minimum severance pay as a provincially regulated employee, which is determined by each individual province.
- Your full severance pay according to our legal system (common law) which can be as much as 24 months’ pay.
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 Microsoft Canada may provide you with.
Once you sign back these documents, you eliminate your ability to negotiate a fair and proper severance package.
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.