Employee Rights and Obligations Upon Termination of Employment
Just like employers, employees have legal rights and responsibilities after they have departed from their job, regardless of whether they leave because of wrongful dismissal, resignation or frustration of employment.
There are many Ontario employment law blogs and articles that employee rights, especially when it comes to pursuing a wrongful dismissal claim, constructive dismissal claim, and reviewing a severance package. However, very few cover employee obligations after a termination of employment. In this article, we cover the most common issues both employers and employees should know when it comes rights and obligations after an employee leaves their job.
Employee Rights after a Termination of Employment
1. Employee Right to Negotiate a Severance Package
When an employer fires an employee and provides them with a termination letter containing an offer for severance pay in exchange for signing a legal release (or a “severance package”), very few are aware or comfortable contacting an Ontario employment lawyer to negotiate their severance pay entitlements. In fact, terminated employees sometimes mistakenly believe their employer’s offer is fair and reasonable, when it is typically a low-ball offer intended to dissuade an employee from negotiating their full severance package entitlements. That is why it is crucial for employees to contact an employment lawyer as soon as their employment is terminated to understand their legal rights and options, including pursuing a wrongful dismissal.
2. Employee Right to Receive Termination Pay and Severance Pay
As part of an employee’s severance package in a employment termination without cause, an employee is entitled to receive compensation (severance pay). This compensation includes minimum entitlements under the Employment Standards Act, 2000, including notice of termination (or termination pay), benefits continuance, and statutory severance pay. However, if an employee has not signed an employment contract with a legally enforceable termination clause restricting their termination entitlements to the minimums under employment standards legislation, they are actually entitled to their full severance package entitlements under common law.
Specifically, in an employment termination without cause, Ontario common law requires employers to provide employees with prior reasonable notice of termination (or pay in lieu of notice) based on the employee’s:
- age
- years of service
- nature and character of employment
- Likelihood of securing similar employment, considering the employee’s experience, training, and qualifications
3. Employee Right to be Treated Fairly in the Manner of Dismissal
Under common law, employers have a legal duty to act in good faith, honestly and fair dealing in the circumstances leading up to (and including) an employee’s termination process. This means, for example, not engaging in conduct that is unfair or made in bad faith, such as being untruthful, misleading or unduly insensitive. Similarly, the courts will award compensation to a wrongfully dismissed if they engage in callous or insensitive conduct in the manner of dismissal, which would be considered a breach of the duty of good faith.
Employee Obligations after a Termination of Employment
1. Employee Obligation to Comply with Employment Contract
If the employee has signed an enforceable employment contract, the employee is expected to comply with its terms and conditions, such as providing appropriate notice of resignation and returning all company property.
2. Employee Obligation to Comply with Non-Solicitation Agreement
If the employee has an employment contract with enforceable restrictive covenants, such as non-competition clause and non-solicitation clause, they may be prevented from competing against their former employer or soliciting their former employer’s clients, employees, contractors or agents.
3. Employee Obligation to Comply with Confidentiality Requirements
Following a termination of employment, the employee can never misuse or disclose confidential information belonging to their former employer, an obligation which is permanent. While a written confidentiality agreement is helpful, the common law imposes an implied duty of confidentiality both during and after employment.
Call an Ontario Employment Lawyer
If you are an employee in Ontario who believes you have a wrongful dismissal claim (or a constructive dismissal claim), please contact our Toronto wrongful dismissal claim lawyer to arrange a confidential consultation to review and better understand your employee rights and options, including pursuing a human rights claim while you negotiate your severance package. We are here to protect your employee rights and best interests. With our detailed employment contract review with an Ontario employment lawyer, you can invest in your future by protecting your rights if you are ever terminated from your employment, including to ensure you receive a fair severance package, deal with a wrongful dismissal claims or constructive dismissal claims.