Consult a trusted attorney before signing off on a severance package following your dismissal from employment.
Certain factors merit review when you’re handed your severance offer awaiting your signature. Union-employee termination is subject to the standards of the union’s collective bargaining agreement. On the other hand, non-union employees are also entitled under Ontario law to certain considerations before being terminated:
- Employees who’ve worked at least 3 months consecutively are entitled by law to a 1-week notice prior to termination or 1 full week’s pay.
- Employees having worked 12 months in a row are due at least 2 weeks’ notice or pay.
- Employees who have worked 3 consecutive years are owed an additional week’s notice or pay for every year worked (to a maximum 8 weeks) from the employer.
Under most circumstances, employers are allowed to combine notice and pay, as long as the combination is equivalent to the above standards – i.e., more pay with less notice or vice-versa. Note that this applies to employees falling outside certain standards for just standards such as:
- Drug or alcohol use on the job
- Ignoring workplace rules
- Intentional disobedience
- Consistently refusing to honor a chain of command
- Conflict of interest
Begin your job search immediately, but before you sign off on your package, call Mandeep S. Saggi and the Saggi Law Firm to guarantee that your severance package awards you all to which you’re entitled under the law.
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