5 Questions about mass layoffs and employee rights | Employment Law Show TV – S9 E13

Episode Summary

QUESTIONS ABOUT MASS LAYOFFS AND EMPLOYEE RIGHTS, returning from maternity leave, non-compete clauses and more on Season 9 Episode 13 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 Alberta, Ontario, and British Columbia on Canada’s only employment law show on TV and radio.

Episode Notes

Justifying a termination for cause

I’ve been employed for over 6 years. Recently, I got into a verbal confrontation with a co-worker. After an investigation by HR, I was let go and told it was “with cause”. Can I challenge this?

• Terminations “for cause”: Employers often mistakenly terminate employees “for cause” due to simple errors or an isolated incident of bad behaviour. To justify a legitimate termination for cause, employers must prove that an employee has exhibited serious misconduct. Many employees who have been let go “with cause” can still pursue their severance entitlements.

Severance pay due in restructuring dismissal

My husband was just let go from his company after 3 years. He was told it was due to restructuring, given 3 weeks’ pay in lieu of notice, and another 3 weeks if he signed the severance agreement.

• Reason for termination: Employers are within their rights to terminate an employee without cause, provided legitimate severance pay is offered. Severance pay would be based on many factors, particularly an employee’s age, position and years of service.
  • Learn more about severance pay
    • Severance in Alberta
    • Severance packages in Ontario
    • Severance entitlements in B.C

New duties after returning from maternity leave

I was planning on returning to my job after maternity leave. My boss informed me that new responsibilities would be added to my role without a raise. Is there anything I can do to prevent this?

• Rights after maternity leave: Employees must be permitted to return to the same job they had before taking maternity or parental leave. Employees who return to a changed job can refuse the imposed changes. Employers who do not offer returning employees their positions could face human rights damages.

Non-compete clause hinders job prospects

I was recently let go from my job, and the termination release contains a non-compete clause. Unfortunately, I work in a specific type of position, and this could hurt my future employment prospects.

• Terms in an employment contract: Employees who have been terminated, regardless of the terms of their contract, should first seek legal advice regarding their severance packages. Employment agreements can often include terms which limit severance pay. Non-compete clauses are typically inappropriate, and employees should be wary of signing agreements which include these terms.

5 Questions about mass layoffs and employee rights

• Mass layoff vs. typical layoff: A mass layoff occurs when a large group of individuals are let go. A typical layoff occurs when a single individual is let go.
  
• Severance packages after a layoff: Severance entitlements are individual entitlements and cannot be impacted due to a mass layoff or an employer’s financial difficulties. In the event of a mass layoff, employees could be owed enhanced severance pay due to the difficulty of finding future employment.
• Employer obligations: Employer obligations do not change regardless of whether or not a mass layoff has been implemented. To avoid future financial difficulties, employers should ensure their employment contracts contain terms which protect their interests.
• Accepting a severance package immediately: Employees have up to two years after termination to pursue their severance entitlements. Employers often impose severance deadlines as a pressure tactic, but they are meaningless.
• Legal advice after the layoff: Employees can seek legal advice on an individual basis from an employment lawyer.

Calculating severance pay after a termination

I was told today that my job is being “terminated without cause”. I have worked as an operations manager for a large organization for 13 years. In initial conversations with HR, I will be offered a week per year of service. Should I get more?

• Factors influencing severance: Many employees and employers mistakenly assume that a specific calculation determines severance pay. Severance pay is not based only on an employee’s years of service, and must include all elements of compensation.

The company bought and offered a new contract

My company is being taken over, and everyone in my department has been offered new employment contracts. The contracts don’t recognize any of our previous work. If we don’t sign, are we owed any severance?

• Sale of a business and new ownership: Employees should be wary if the new ownership does not acknowledge previous years of service. A refusal to do so can lead to a major loss in entitlements. Employees should seek legal advice before signing a new employment contract.
  

Can an employee…?

• Placed on unpaid suspension: Employers do not have the right to place employees on an unpaid suspension. A paid suspension in some circumstances is permitted.
• Monitored in the workplace: Employees can expect to be monitored by their employers. Audio recordings cannot be conducted unless an employee is made aware of it.
• Denied vacation time: Employers can determine when an employee is permitted to take vacation time and can deny requests.
• Refusing unsafe work: Employees cannot be penalized for refusing unsafe work.
• Let go before the contract end date: Employees who are let go before the end of their contract would be owed the balance of the contract in severance pay.

PREVIOUS EPISODE: Employment Law Show S9 E12 – Social Media and Your Workplace: What You Should Know