Employment Law Show: Ontario – S10 E103

Episode Summary

Are short-service employees owed severance? Are severance package deadlines enforceable? Employment Lawyer Alex Lucifero, a managing partner at Samfiru Tumarkin LLP, answers those questions and more on the Employment Law Show. 

LISTEN BELOW to Ontario’s premiere radio show about employment law and workplace rights featuring the province’s leading employment lawyers. You can hear the show live on Mondays to Thursdays at 640 Toronto and 980 CFPL in London at 6:30 p.m. ET, as the hosts take calls from listeners and provide vital answers to employees and employers. 

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Show Notes

• Short-service employee rights upon termination: It is a common misconception that short-service employees are not owed severance pay upon termination or very little compensation. In many cases, the severance pay owed to short-service employees is disproportionately more than that of a long-service employee. Severance pay is based on a number of factors including the age of an employee, and length of service but also must consider the likelihood of future comparable income.
• Structure of a severance offer and deadlines: Typically an employee is called into a meeting and told their employment has come to an end. A severance package will be offered along with a letter or document outlining the severance agreement. Employees are encouraged to sign the severance offer within a certain amount of time. Deadlines are usually a pressure tactic by an employer and employees should remember that they have up to 2 years to pursue severance after the initial date of termination.
• Limit severance entitlements: Employers that wish to limit an employee’s severance entitlements to the minimum amount according to the Employment Standards Act must ensure that the proper terminology is included in an employment agreement. Employers should speak to an employment lawyer to determine the necessary language needed.
• Schedule changing from full-time to part-time: Employees should bear in mind that a major change to the terms of their employment, such as a dramatic reduction in pay or hours can result in constructive dismissal. Employees who accept a major change from their employer are not only giving their employer permission to implement future changes but also potentially risking their severance entitlements.

Need an employment lawyer?

• Pocket Employment Lawyer: Before you call a lawyer, use the Pocket Employment Lawyer to find out if you might have a case. 
• Severance Pay Calculator: Discover how much severance pay you should get when you lose your job, used successfully by nearly 2 million Canadians. 
• Watch our TV Shows: Get further clarity on your rights by watching our popular TV show episodes.