Severance for federally regulated employees

What is a federally regulated employee in Canada?

A federally regulated employee is a worker who is employed by a federally regulated company. Their labour and workplace rights are governed by the Canada Labour Code (CLC).

The CLC establishes basic rights and responsibilities for employees and employers, including wages, health and safety rules, statutory holidays, and severance pay.

Despite a variety of federally regulated industries in both the private and public sector, these employees only make up approximately six per cent of the country’s workforce.

SEE ALSO
• Federally regulated companies in Canada
• Severance pay for provincially regulated workers

WATCH: Employment lawyer Lior Samfiru explains what rights federally regulated employees have on an episode of the Employment Law Show.

Can federally regulated employees get severance pay?

Yes, federally regulated employees are entitled to full severance pay when they lose their job, much like provincially regulated workers in Canada.

A proper severance package also applies if a non-unionized employee is wrongly fired for cause or constructively dismissed.

How much severance pay can federally regulated employees receive?

A full severance package for federally regulated employees can be as much as 24 months’ pay.

This includes non-unionized individuals working full-time, part-time, or hourly in Ontario, Alberta, and B.C.

Severance is calculated using a variety of factors, including age, position at the company, length of service, and your ability to find new work.

LEARN MORE
• Canada increasing working notice for federally regulated employees on Feb. 1
• Working Notice: Ultimate guide for employees
• Canada minimum wage

Don’t sign on the dotted line!

Do not accept any severance offer, termination papers or exit agreement that your employer may provide you with.

Once you sign these documents, you forfeit your ability to negotiate your severance package.

An experienced employment lawyer at Samfiru Tumarkin LLP can review your offer and ensure that you receive the compensation you deserve.

SEE ALSO
• I already accepted my severance offer, what should I do?
• Should I negotiate my own severance package in Ontario?
• What Albertans need to know about negotiating severance packages
• Negotiating severance in B.C.: What employees need to know

Instead of severance, can I get my job back as a federally regulated employee?

In some cases, yes. Unlike provincially regulated workers, you can take legal action to be reinstated rather than pursue severance pay.

If you are a non-unionized, federally regulated employee who was fired for cause and believe that your termination was unjust or arbitrary, you can file an unjust dismissal claim.

Once you have been notified of your termination, you have 90 days to pursue an unjust dismissal.

The following criteria must be met:

• You work in a federally regulated industry
• You are NOT a manager
• Your job was NOT eliminated during an honest corporate restructuring

Many federally regulated employees in Canada aren’t aware that they can fight to get their jobs back.

If you believe you have been unjustly dismissed, reach out to our firm. We can review your situation and advise you of potential next steps.

Wrongfully dismissed?

If you are a federally regulated employee who has lost your job, there is a chance that you have been wrongfully dismissed.

A wrongful dismissal in Canada happens when you are fired or permanently laid off by your employer, but not given a proper severance package.

What you should receive is based on many factors. An experienced employment lawyer at Samfiru Tumarkin LLP can analyze your situation and explain how much compensation you may be owed.

ADDITIONAL RESOURCES
• Wrongful Dismissal in Ontario
• Understanding Wrongful Dismissal in Alberta
• What you need to know about Wrongful Dismissal in B.C.

Changes to your job

Federally regulated employees do not have to accept major changes to their job. Large modifications such as a demotion, cut in pay, reduction in hours, or negative change to commission are illegal.

When the terms of your employment are significantly changed, the law allows you to resign from your job and seek full severance pay through a constructive dismissal claim.

Temporary layoffs

Temporary layoffs occur when an employer significantly reduces or completely stops an employee’s employment.

There is usually a mutual understanding from both sides that the employee will be called back to work, to the same position, after a reasonable period of time.

It is important for federally regulated employees to understand that temporary layoffs are considered illegal — unless you agree to the layoff or it is addressed in your employment contract.

You have the option to wait to be called back, or can treat this as a termination through a constructive dismissal and pursue severance.

Harassment

Federally regulated employees do not have to tolerate harassment or discrimination in the workplace — either from coworkers or managers.

Companies have a duty to investigate and respond appropriately to allegations of harassment and abuse.

If your employer is creating, or allows for the creation of, a hostile or toxic work environment, this can be grounds for a constructive dismissal.

Contact a knowledgeable employment lawyer at Samfiru Tumarkin LLP today to explore your rights.

Independent contractor? Think again

If you were hired by a federally regulated company as an independent contractor, there is a significant chance that you should actually be considered an employee.

Employers may misclassify employees as contractors to avoid acknowledging certain employment rights, like minimum wage, vacation and overtime pay, and severance when the individual is fired.

An employer cannot avoid the issue by having their worker sign an employment contract which indicates that they are a contractor rather than an employee.

Our legal system provides guidelines for determining whether someone is a contractor or employee.

Use Samfiru Tumarkin LLP’s Pocket Employment Lawyer to find out what you are right now.

Fired for medical reasons

If your medical condition was in any way a factor in your employer’s decision to fire you while you are on leave, you may be able to file a human rights claim. Your employer can’t let you go due to medical issues or a disability.

If an employee is terminated without cause for reasons unrelated to their medical leave or disability, this is legally permissible, as long as the employer provides them with proper severance pay.

An employer may also legally terminate their employee while on medical leave if the worker is:

• Terminated for reasons which sufficiently establish just cause
• The employee’s employment contract has been frustrated

Employment lawyers for federally regulated staff

If you are fired or let go for any reason, contact the experienced employment law team at Samfiru Tumarkin LLP.

Our lawyers in Ontario, Alberta, and B.C. have helped tens of thousands of non-unionized individuals resolve their workplace issues.

We can review your situation, enforce your rights, and ensure that you receive the compensation you are owed.