Employment Law Show: Ontario – S10 E85

Episode Summary

How is severance calculated? What should you know about termination? Employment Lawyer Lior Samfiru, co-managing Partner and national practice leader 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, Mondays to Thursdays, on 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

• Called back from a temporary layoff, but unable to work: For the ‘Case of the Day’ segment, Lior discusses a situation where an employee was put on a temporary layoff due to COVID, and then moved out of Province. Did you know that temporary layoffs are illegal and can be treated as a termination, in which the employee is owed severance? Tune in to find out more about this employee’s rights when they are unable to return to work.
• How is severance pay calculated?: Lior discusses the common misconceptions when it comes to calculating severance pay. The proper way to calculate an employee’s severance pay entitlements considers their age, position, length of service, and ability to find new comparable employment.
• Employer changing the cause of termination: An employee was initially let go without cause, and then the employer changed the basis of termination to for cause. Although this is legal, find out why this might not work out in favour of the employer.
• Termination clause: The only legal way for an employer to limit an employee’s severance pay entitlements is through a termination clause in their employment agreement. Lior emphasizes the importance of having employment contracts reviewed by an experienced lawyer.
• Fixed term contract: A fixed term contract allows an employee to work until a pre-determined end date. This date could be three months from the start of employment, or 5 years. There is no time restraint on how long a fixed-term contract can be.
• Overtime pay must be considered for severance: Overtime pay, along with car allowances, bonuses, and commission should all be considered when calculating an employees full severance entitlements.
• Do not go to the Labour Board for a termination: When it comes to severance pay, the Labour Board can only fight for your minimum entitlements. Always consult with an employment lawyer, as they can win your rightfully owed maximum entitlements according to common law. This could be up to 24 months pay.
• Annual pay raises: There is no law in Ontario requiring an employer to give an employee a raise in pay or wages, on an annual basis. The decision to bump up a worker’s salary is solely up to the employer’s discretion. The only exceptions are when (A) the government increases minimum wage, or (B) if there is a clause in an employment contract regarding annual pay raises.

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 episodes of our popular TV show.