Employment Law Show: Ontario – S11 E67
Episode Summary
Can independent contractors or consultants receive severance? Employment Lawyer Jon Pinkus, a Partner at Samfiru Tumarkin LLP, answers this question 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
- Inadequate severance due to label as a consultant: Severance pay is typically based on an employee’s age, position, and years of service. Employers often mistakenly misclassify individuals as consultants or independent contractors, despite performing as an employee. Misclassifications of employees can lead to a lack of vital employment rights, such as adequate severance pay.
- Non-disclosure agreements and severance: It is very common for employers to ask employees to sign a non-disclosure agreement once a severance package has been agreed upon. Employees that do not wish the agreement will have to go through with a hearing. It is a risk that employees might not be successful at a hearing with the Ministry of Labour. Ultimately, the Ministry of Labour is limited in terms of what they can award terminated employees.
- Defining constructive dismissal: A constructive dismissal occurs when an employer changes a major term of employment without the consent of an employee. The change has to be considered significant, such as a reduction in salary by fifteen percent, a demotion, etc. Employees can consider their employment to be terminated.
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