Termination, Severance, And Negotiation

Termination of employment is never an easy experience. If you are an employee who was laid off or whose employment was terminated, employers will try to give you less than you are entitled, and ask you to sign a ‘release’. Do not sign any documents before consulting an employment lawyer. As a firm that focuses on Employment Law, we help you protect your rights and collect higher awards from your employer.

When calculating what you are owed when your employment is terminated, the Supreme Court of Canada recognized a list of factors (known as the Bardal factors) to determine the length of your notice period or how much the employer owes you for payment in lieu of notice:

  • Your age;
  • Your position (or character of employment);
  • Years of service in that position; and
  • Availability of similar employment.

Note: this list is not exhaustive. This means a court will consider other factors when determining what the appropriate notice period is for your case.

Employment lawyers know how to negotiate with the opposite side and understand what to present to the court to get you a higher award for your employment termination.

In the event that you are dismissed, fired, laid off, or your employment is terminated, and you want to see how we can help, contact us today.

Severance

A severance pay is different than the termination notice or the pay in lieu of notice when termination occurs.

An employee is entitled to severance pay only when they have been employed by their employer for five years and above, and if the employer has a payroll of $2.5 million or if the employer terminated 50 employees and above in a six months period because of the business or part of it being permanently shut down.

Whether you qualify for severance pay or not, you may be entitled to termination notice or pay in lieu of, so even if you have been employed for less than five years or your employer is a small company with less than $2.5 million.

If you are an employer or an employee and have questions or want to see how we can help, contact us today by calling 1-800-771-7882, email [email protected], or fill out the form below.

FAQS

A reasonable severance package in Canada varies substantially based on the circumstances of the employee. While there are many factors which can contribute to the calculation of a reasonable package, there are common factors which are typically considered, known as the Bardal factors.

Employees can try to negotiate alone, but almost always, a lawyer can get them more. Seeking the advice of an experienced employment lawyer helps a dismissed employee understand whether the severance package they are offered is reasonable in comparison with what a judge will likely give them.

An employment lawyer is likely in the best position to assess the appropriate severance package of an employee who has been let go. A good lawyer will know how and when to negotiate, and when to initiate a Statement of Claim to get defendants to pay you through settlement or a court order.

Yes – having your employment terminated by your employer is the same as being fired or let go. A termination of employment is either with or without cause, which affects whether or not you are entitled to termination pay. Sometimes employers try to claim that a termination is for cause when it is not. Wrongful dismissal is when an employee is told they are in fact fired or dismissed.

As an employee, if your employment is terminated without cause – that is, through no fault of your own, you are entitled to termination pay, or common law reasonable notice or pay in lieu. If you are an employee and have been terminated, contact an experienced employment lawyer to help assess your case.

In Ontario, employers are able to dismiss an employee without reason – as long as the reason is not related to Human Rights. Employers have to provide the appropriate amount of notice or termination pay to the dismissed employee. The appropriate amount of notice will largely depend on the employment agreement if applicable, and if not, on common law reasonable notice.