Employee Termination Packages
In Ontario, employers have a legal right to terminate an employee’s job, but along with that right come various responsibilities. When a termination is not carried out properly, your company risks having to defend a wrongful dismissal claim or human rights complaint.
Preparing (or negotiating) a severance agreement as part of the termination process can be quite difficult for an employer. It is important to keep all emotions aside, and ensure the severance agreement is structured in a business-like fashion to minimize the trauma and maximize the benefits for both sides.
For an employer, the goal may be to reward a long-term employee, lessen the trauma of the termination and prevent a possible claim for wrongful dismissal as a result of the termination. For the employee, the goals are likely to maximize the amount of money obtained as part of the severance, obtain all of the benefits that she or he is entitled to and ensure that his or her subsequent job search is not hampered by having been terminated.
On both ends, the goal should be to reach a fair and equitable agreement that offers adequate protection for both sides, with a focus on the economics of the situation without regard to emotions and issues that led to the termination. Before you decide to terminate any employee’s job, contact us to discuss your rights and obligations as an employer, including by proactively minimizing the risk of wrongful dismissal by preparing appropriate employment contracts, termination letters and severance packages.
With our experiencing representing various types of Ontario, and have the expertise to assist you in making the decision to terminate employment effectively, and in line with the law. Most often, this includes structuring a termination properly and cost-effectively.