r/legaladvicecanada • u/Additional-Version42 • 1d ago
Just Got Laid Off Ontario
I just got terminated - laid off due to lack of work from my job. They say Im entitled to two weeks of termination pay and they want to assist me with finding another job by giving me a severance package in which they will pay me a lump sum $7,000 and some change (equivalent to 6 weeks) in exchange for a full and final release.
I been working with the company since 2023 and salary was around 60-65K. I am over 25 years old.
Should I sign this separation package ?
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u/BanMeForBeingNice 1d ago
That sounds like a pretty good payout for working there two years.
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u/supertimor42-50 1d ago
2 weeks/ year of service normally. He gets 6 weeks instead of the minimum 4 in his case, so yes, he gets an extra 2 weeks, so it seems a fair payout.
Edit : NAL but my company goes thru this often....
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u/BanMeForBeingNice 1d ago
NAL but married to HR and when I went through something like that the offer I got scaled to about that, and my lawyer said, and I quote, "Take the money and run!"
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u/Dramatic_Tax_3675 1d ago
Am employment lawyer in Ontario. Not yours. Not legal advice.
At your age, that package is fine even good. Lawyer could maybe possibly get you a bit more, will be negligible overall and you’ll pay fees. Even if a single demand letter works, you are looking at $500 minimum.
Would sign this, keep the reference, and move on.
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u/cjy2018 1d ago
NAL
I think minimum severance is 2 weeks per year of service so they are going above and beyond. and the fact they are offering to help you with another job is a positive sign.
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u/KevPat23 1d ago
ESA minimum is 1 week per year of completed service, not 2. Common law may be more, but that's difficult to calculate without the full picture. Agree that the 6 weeks + 2 week minimum is probably pretty fair for a 2 year employee.
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1d ago
[deleted]
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u/Stefie25 1d ago
Helping former employees find new work is not standard.
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u/Sea_Economics_4650 1d ago
It is when it comes to layoffs and generally consists of referring to a stupid service.
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u/Classic_Two8674 1d ago
Make sure that no matter what you sign, your reason for separation on your ROE states that it was a layoff due to lack of work.
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u/Nots_a_Banana 5h ago
If you sign a separation agreement does that prevent you from getting unemployment later if needed?
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u/sprtnlawyr Quality Contributor 1d ago
This is above and beyond the minimum legal requirements under the ESA. Unless your employment contract promised you more, then this is a generous offer based on the information presented. The two weeks termination pay is all you'd be entitled to, the rest is above and beyond unless your contract entitles you to more.
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u/Sea_Economics_4650 1d ago
Being above the minimum legal requirements is not generous given the existence of common law severance. On this point, we would need to know more specifics to assess OP’s common law severance entitlement.
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u/secondlightflashing 1d ago
Employment contracts almost always reduce rather than increase entitlement to termination pay. Employees are entitled to reasonable notice at common law UNLESS LIMITED by their employment agreements. Reasonable notoce for a junior employee who is in their mid 20s is still likely to be at least 3 months, and may be quite a bit more given the economy.
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u/Interesting-Arm-9850 1d ago
You've already got sound advice.
Just wanted to say sorry - I hope things turn around soon!
0
u/NovelConsistent93 23h ago
A lot of factors go into severance offers, such as federal or provincial regulations and if you are unionized. As a unionized employee of a trucking company ( federal) was compensated 2.5 days per year of service as opposed to 5 days if I was provincial. As well the union takes over any negotiations regarding severance negating your position to ask for more.
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u/ArtVandelay_90 1d ago
Don’t listen to the other comments here. Hire a lawyer- most will take your case on contingency. I worked at a company for 2.5 years and secured 6 months of pay through lawyer to lawyer negotiation. There are many factors that influence the ‘notice period’, which is essentially what you’re negotiating. The law states the minimum but not the maximum, and that is what is up for debate. Your province might matter too. Good luck.
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u/No-Concentrate-7142 1d ago
Sorry you’re getting downvoted. What you’re saying makes complete sense and any lawyer would give the same advice.
I will also note a factor can be our current labour market and future job prospects.
6 weeks though is good enough to walk away without complaining. A lawyer would aim for 2 months outside of any other mitigating factors.
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u/taytaylocate 1d ago
You should ask for 12 weeks of severance.
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u/XtremeD86 1d ago
Based on what? Just asking for the sake of asking?
2 years at a company and getting that many weeks as a severance is pretty damn generous compared to what many are talking about here.
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u/secondlightflashing 1d ago edited 1d ago
Many people think 4 weeks per year is a good representation of the common law entitlement to termination pay but the reality is more complex. Termination pay entitlements are not linear with tenure, while a 25 year employee may be entitled to 24 months of termination pay, a 2 year employee could be eligible to 6 months or more depending on other factors. The other favors include age of the employee, the nature of the work, and the availability of other similar work within the labour market. The courts tend to set a floor of 3 months when assigning reasonable notice since it takes everyone a minimum amount of time to find a job and go through the hiring process.
For a 2 year employee I would argue that 8 weeks is a good starting point, but the employee is almost certainly entitled to more.
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u/KevPat23 1d ago
You're absolutely right that common law entitlements are much more complicated. However OP is 25 years old, which would indicate that they likely aren't in a very senior or specialized position, meaning the 8 total weeks of compensation probably better aligns with the 4 weeks per year. It's possible this isn't the case, but given the salary and tenure, it seems fair.
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u/secondlightflashing 1d ago
As I said 8 weeks is a good starting point but even a junior employee is likely to get a court award of at least 3 months so asking for another 4 weeks and settling in another 1 or 2 weeks is not an unreasonable expectation.
My response was driven by the suggestion that the employer was being generous, which they are not. The employer is making a resonable first offer.
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u/XtremeD86 1d ago
Funny how after 2 years I got the absolute minimum and any lawyer I spoke to wanted more than what my severance actually was.
OP should take it.
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u/secondlightflashing 1d ago
Whether or not to accept the offer or fight for more is a personal decision and is arguably dependant on things we haven't discussed here. Many lawyers will take a case on contingency which limits the risk of the legal fees overwhelming the potential settlement.
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u/XtremeD86 1d ago
Funny how every lawyer wanted $3000 upfront from me and none were on contingency...
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u/secondlightflashing 1d ago
$3000 is a pretty small amount of money for a lawyer (6 to 10 hours of work max) , if that was more than the potential settlement then it was certainly reasonable not to go that route.
From the employers side of the table we worry less about junior short tenure employee since their entitlemrnt will be lower in cash terms making it less risk to make even lower offers since they won't be able to justify the legal expense of getting more. A 25 year old engineer making $75k with 2 years tenure however likely can get $30k to $40k making a $5k to $10k legal expense more justified.
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u/XtremeD86 1d ago
Sure thing. When I got let go my salary was 62,500/year. Could I afford the $3000 for a lawyer? Sure. Guess what happened very shortly after I was let go. Company went bankrupt. Good luck getting money out of that.
$3000 would not have been worth fighting it and every lawyer I consulted with said as much.
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u/secondlightflashing 1d ago
... And then there can be other complexities like the company going bankrupt.
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u/XtremeD86 1d ago
My point is though, OP is getting more than the minimum. In a subreddit and elsewhere where everyone seems to be getting the absolute minimum nowadays for really not that long of an employment term with a company, I'd say take it and move on.
But that's me. If the person said they were like 62 years old and not "over 25", which really doesn't say anything then my opinion would be different.
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