5 Facts about Temporary Layoffs | Employment Law Show TV – S6 E07

Episode Summary

5 FACTS ABOUT TEMPORARY LAYOFFS, small business severance obligations, new ownership, and more on Season 6 Episode 07 of the Employment Law Show with employment lawyer Lior Samfiru, Partner at Samfiru Tumarkin LLP.

Watch above to discover your workplace rights and learn everything you need to know about employment law in Ontario, British Columbia, and Alberta, on the only employment law show on both TV and radio in Canada.

Episode Notes

Refusing to get vaccinated is seen as a resignation

My employer gave me the ultimatum that if I’m not vaccinated I won’t be employed. I was informed that by refusing to get vaccinated I had effectively resigned. Is this right?

• Job abandonment: Employers do not have the right to impose vaccine policies without government support. Employees who have been told they are no longer employed due to their vaccination status have been terminated and cannot be considered to have resigned. It is important to remember this distinction as employees who have been terminated are owed severance entitlements,

Working for a Canadian branch of a US company with new job requirements

I work in sales for the Canadian arm of an American software company, earning a base salary and commission. They are doubling my quota, meaning I will have to work twice as much to make the same amount of pay.

• Rights for employees in Canada: Employers cannot make significant changes to the terms of employment as it can lead to constructive dismissal. A major change can be a fundamental change to the payment structure of an employee’s compensation. Employees do not have to accept significant changes and should remember that changes that are accepted can be repeated by their employer in the future. Accepting changes gives employers the right to impose changes again.

New owner buying company questioning seniority

Another company is buying my current employer. What happens to my years of seniority built with the original owner?

• Rights after a business is sold: If an employee’s company is bought out and they continue working for the new buyer, their seniority typically carries over. In some circumstances, new owners can offer employees an employment contract that can negate previous years of service. It is important for employees to contact an employment lawyer before signing a new agreement as it can limit their future severance entitlements.
  • LEARN MORE
    • Selling an Ontario business: Who pays severance?
    • Severance when an Alberta company sells
    • B.C. severance packages when a company is sold
    

5 Facts About Temporary Layoffs

• Temporary layoffs are illegal – even during a pandemic: Despite the pandemic, employers do not have the right to impose temporary layoffs. Temporary layoffs must be accepted by an employee and a refusal is considered a termination of employment.
• You can refuse the layoff and treat it as a termination: Employees can decide whether or not they wish to accept the layoff or pursue their severance pay. Employees do not have to wait a certain length of time in order to refuse the layoff but can do so immediately.
• Severance pay for a temporary layoff: Severance pay is based on a number of factors including the age of an employee, the length of employment as well as the position of the employee. For some long-service employees, severance can be up to almost two years of compensation.
  • LEARN MORE
    Severance Pay in Ontario
    Severance Entitlements Alberta
    British Columbia Employee Severance
• Accepting a temporary layoff: Employees should remember that an initial acceptance of a layoff implies an employer is able to do so again in the future. Employees should be wary of accepting a layoff as it can become an implied term of employment.
• Back from a temporary layoff to different duties or lower pay: Employers cannot implement significant changes to an employee’s position after they recall an employee to their position. Fundamental changes to the terms of employment can result in a constructive dismissal. Employees do not have to accept a change simply due to the pandemic.

Small business severance obligations

Do all companies have to pay severance, including small businesses? Are pension and benefits considered in a severance package?

• Size of a company and obligations: The size of the company, such as the payroll and number of employees. do not affect whether or not an employer has to pay severance entitlements. Full severance entitlements remain the same and do not depend on whether or not the employer is a large company. Severance encompasses all forms of compensation, such as bonuses, memberships, benefits, etc.

Employee fired due to a side job

My employer fired me after finding out about my “side hustle”. The extra work never interfered with my full-time work and wasn’t related to the same industry. Can they fire me for that reason?

• Fired “for cause”: Employees who are not working in a sector or job that conflicts with their employer’s interest or stealing time, are able to have as many positions as they desire. Employees should not be spending time doing another job during their regular work hours. Employers are permitted to terminate an employee for any reason, but in a situation such as this would have to be a termination without cause.

Severance changes due to the pandemic

The company just cut my job after 17 years because of the pandemic. My severance offer is for 26 weeks. Should I accept it or check with the government first to see if I’m owed more? I’m 48 and had a $64,000 salary.

• Severance despite financial difficulties: Before accepting a severance offer, employees should not contact the Ministry of Labour as the government can only instruct employees about their minimum severance entitlements. Employees should contact an employment lawyer before signing or accepting a severance offer as what is offered is often inadequate. Severance pay is based on the age of an employee, the length of employment, as well as the position and can, be up to 24 months of pay.

NEXT EPISODE: Employment Law Show S6 E08 – 5 common questions about probation periods

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