In Canada, there are different federal and provincial laws that are applicable depending on the areas in which companies operate. For employees that work for a federally-regulated employer, such as a bank or telecommunications company, federal labor law found in the Canada Labour Code outlines what an employer is required to do for its employees Canadian employment law. However, this only includes an employer’s minimum standards requirements, including minimum wage, minimum hours of work, minimum vacation, minimum notice of termination and severance pay.
Notice of Termination (Wrongful Dismissal)
While federally-regulated employees do not have to give their employer notice if they choose to quit (unless they have an employment contract that contains a requirement to provide notice of resignation), an employer must provide them with either of the following when they decide to terminate an employee’s job:
- provide the employee with at least 2 weeks’ written notice of their intention to terminate employment; or
- in lieu of written notice of termination, 2 weeks’ regular wages
The employer’s requirement to provide written notice of termination or pay in lieu of notice does not apply to:
- an employee who has not completed 3 consecutive months of continuous employment
- an employee who terminates their own employment
- an employee who is dismissed for just cause
- an employee who is on a lay-off that does not constitute a termination of employment
- where the contract provides an end and that the work ends on that date
Severance Pay
Upon termination of employment, an employer must also provide an employee with 2 days’ regular pay for each full year of service (as long as they have completed at least 12 consecutive months of continuous employment before their layoff or termination of employment). The minimum severance pay is 5 days’ pay. When calculating an employee’s years of service, employers must include any period of temporary layoff or absences from work required by Canadian employment law, including sick leave and maternity leave. However, an employer may not be required to provide a terminated employee with severance pay if they have been terminated for just cause, quits their job, or if they have signed an employment contract that contains a fixed end date and the term ends.
Unjust Dismissal
For all non-unionized employees (except managers) who have completed at least 12 months of continuous employment with the same employer, Canadian employment provides a procedure for making complaints against a dismissal (termination of employment) that an employee considers to be unjust.
An unjust dismissal claim can include cases of constructive dismissal where the employer:
- has not directly fired an employee, but has failed to comply with the contract of employment in some major respect (e.g., demotion)
- has unilaterally and substantially changed the terms of employment
- has expressed an intention to do either of these
In such a case, the employee must clearly indicate (object) within a short period of time that he or she does not accept the new conditions of employment. Typically, an employee feels compelled to resign rather than accept the new conditions of employment (which they should never do unless consulting with an employment lawyer for help and advice on their options).
Unjust Dismissal Complaint
If a federally-regulated employee believes they have been unjustly fired, they can:
- request, in writing, a written statement from their employer giving the reasons for dismissal. The employer must reply within 15 days after the request is made; or
- file a complaint alleging unjust dismissal at any Labour Program office no later than 90 days from the date of the dismissal.
The complaint may be made by the dismissed person themselves or by an experienced employment lawyer. The unjust dismissal complaint must identify the employee, state that the employee was dismissed, the date of dismissal, and claim that the dismissal was unjust.
Examples of Unjust Dismissal
- employer’s reason for termination of lack of work/discontinuance of position was untrue and actually based on discrimination
- employee fired for unsatisfactory work performance but employer does not follow its own progressive discipline policy requiring verbal warnings, written warnings, suspension, an opportunity and training to improve before termination (resulting in an award of 6 months’ pay)
- employer’s reason for termination of violation of company rules was untrue, as employee improved conduct and performance after each form of discipline imposed
Call Employment Lawyer Toronto for Help
If you believe you were unjustly fired from your job with or without severance package, call today to discuss your options. As an employment law firm in Toronto, Bune Law has reviewed many severance packages and are skilled at negotiating improvements. You will review and get guidance on your severance package before you agree to sign any termination documents, and help ensure that your severance package is fair and reasonable.