Stellantis Layoffs and Severance Pay

Stellantis is a multinational automotive corporation formed in January 2021 through a merger between Fiat Chrysler Automobiles (FCA) and Groupe PSA. It is now one of the world’s leading automotive groups, with a diverse portfolio of iconic brands including Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS Automobiles, Fiat, Jeep, Lancia, Maserati, Opel, Peugeot, Ram, and Vauxhall.

Stellantis offers a wide range of automotive services, including the design, development, production, and sale of vehicles and related parts and accessories. The company operates in various segments, such as passenger cars, light commercial vehicles, and components.

In Canada, Stellantis has several offices and facilities across the country, including manufacturing plants in Windsor and Brampton where they produce vehicles under brands like Chrysler, Dodge, and Jeep. Stellantis also has dealerships and service centers across Canada to support its customers.

Stellantis provides a diverse range of job opportunities in Canada. The company offers positions in various fields, including engineering, manufacturing, design, sales, marketing, finance, human resources, information technology, research and development, and more. These roles encompass a wide range of skill sets and expertise, providing opportunities for professionals at different stages of their careers.

The company was officially formed on January 16, 2021, as a result of the merger between FCA and Groupe PSA.

In May 2023, Stellantis halted construction on its $5 billion electric vehicle battery plant in Windsor. The decision followed the federal government’s announcement that it was giving up to $13 billion in subsidies and a $700 million grant to Volkswagen to build an electric vehicle battery plant in St. Thomas.

Severance for Stellantis employees

In Canada, non-unionized employees at Stellantis 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 a non-unionized worker in Canada receives from their employer when they are fired without cause.

Even if you are fired for cause, it’s very likely that you are still entitled to full severance pay because employees often don’t meet the conditions necessary for this type of dismissal.

LEARN MORE
• 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.

This concept applies during challenging economic conditions, downsizing, the closure of a business, or major 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 numerous automotive 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 Stellantis, you are likely 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 Stellantis 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.