Vale Layoffs: Severance Pay for Employees
Vale S.A. (Vale) is a Brazilian multinational corporation and one of the largest global producers of iron ore and nickel.
Established in 1942 and headquartered in Rio de Janeiro, Brazil, it operates extensively in Canada through Vale Canada Limited, formerly Inco Limited, which it acquired in 2006.
Vale Canada, based in Toronto, focuses on nickel, copper, cobalt, and platinum group metals, employing nearly 7,000 people across the country (a majority of them working in Sudbury), and an additional 2,000 contractors.
Globally, Vale has over 230,000 employees, including contractors, with operations spanning mining, engineering, and logistics.
Vale layoffs: Severance pay facts
Employees at Vale are entitled to up to 24 months of severance pay when laid off or terminated without cause, whether full-time, part-time, or hourly.
Some independent contractors may also qualify for severance.
Key facts
- Severance pay: Can reach up to 24 months’ pay. Severance is calculated using a variety of factors, such as age, position, length of service, and ability to find similar work. Explore detailed information about severance pay in Ontario, Alberta, and B.C.
- What’s included: Severance packages should include salary, bonuses, commissions, and other compensation earned during employment.
- Deadlines: Employees generally have up to two years from the date of their termination to pursue severance. Deadlines set by employers for accepting severance offers aren’t legally enforceable.
Note: Samfiru Tumarkin LLP has assisted tens of thousands of individuals in a variety of roles, from entry-level to executive positions, in obtaining enhanced severance packages.
How is severance pay calculated for Vale employees?
Severance packages are designed to provide financial support during a career transition.
Key factors include:
- Length of service: Employees with longer tenure may be entitled to more compensation.
- Age: Older employees may receive additional severance, reflecting potential challenges in finding similar work.
- Position: Specialized roles or senior positions can lead to higher compensation.
- Availability of comparable roles: Severance may account for the ease or difficulty of finding equivalent employment.
- Employment contracts: While some employment agreements attempt to limit severance, not all limitations are legally enforceable.
Many believe employees are only entitled to the minimum severance outlined in employment standards legislation.
However, under common law, individuals may qualify for much more—up to 24 months’ pay. Use our Severance Pay Calculator to quickly estimate what you may be owed.
Failure to provide proper severance pay constitutes wrongful dismissal. Our firm has extensive experience securing fair and full severance packages for thousands of clients.
To learn more about how severance works in Canada, watch this quick primer featuring employment lawyer Lior Samfiru:
What to expect during a layoff at Vale
Navigating a layoff can feel overwhelming, but understanding the process can help you take the right steps:
- Communication: You’ll likely be informed of the layoff through a meeting or written notice. During this meeting, you may receive documents such as a termination letter, details about severance, and information on benefits.
- Review documents carefully: Avoid signing any paperwork immediately. Take the time to understand the terms and seek legal advice before agreeing to anything.
- Support options: Your employer may offer resources (i.e. career transition services) to assist you during this period.
- Severance offers: Employers might set deadlines for accepting severance packages. Those deadlines aren’t legally binding—you have up to two years from the termination date to pursue your full entitlements.
Remember: You have the right to take your time and make informed decisions. Consulting an employment lawyer at Samfiru Tumarkin LLP can help you navigate this process confidently.
Resources for Vale staff
Vale layoffs: Timeline & analysis
- December 2024: Vale is laying off staff across all corporate functions in an effort to remain competitive.
Laid off at Vale? Steps to take
- Don’t sign a severance offer immediately: You don’t have to accept it on the spot or a few days after receiving it.
- Research your entitlements: Our firm’s Severance Pay Calculator can help you determine the amount of compensation you’re owed.
- Seek legal counsel: Have an experienced employment lawyer at Samfiru Tumarkin LLP conduct a thorough review of your severance offer.
- Document everything: Keep records of termination notices, severance offers, and communication with Human Resources (HR).
NOTE: If you’ve already accepted a severance offer, don’t panic. Connect with a legal professional as soon as possible.
Why Samfiru Tumarkin LLP?
Unlike employment law firms that rely heavily on courtroom victories, our proven strategy focuses on maximizing severance packages early in the claim process—helping clients avoid the time, cost, and stress of litigation.
With extensive courtroom experience to fall back when necessary, we excel at securing generous outcomes quickly and efficiently for our clients.
In addition to severance package negotiations, our lawyers in Ontario, Alberta, and B.C. can help with a variety of employment matters, including:
If you’re a non-unionized employee who needs help with a workplace issue, contact us or call 1-855-821-5900.
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.
About the Author
Lior Samfiru
Lior Samfiru is a Founding Partner at Samfiru Tumarkin LLP and the Practice Leader of the firm’s Labour & Employment Law Group. Known for his advocacy and success representing both employees and employers, Lior exclusively serves clients in Ontario, where his extensive experience has made him one of Canada’s most sought-after employment lawyers.
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