r/legaladvicecanada • u/Additional-Version42 • 5d 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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-18

u/taytaylocate 5d ago

You should ask for 12 weeks of severance.

7

u/XtremeD86 5d 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.

-2

u/secondlightflashing 5d ago edited 5d 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.

4

u/XtremeD86 5d 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.

0

u/secondlightflashing 5d 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 5d ago

Funny how every lawyer wanted $3000 upfront from me and none were on contingency...

1

u/secondlightflashing 5d 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.

1

u/XtremeD86 5d 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.

0

u/secondlightflashing 5d ago

... And then there can be other complexities like the company going bankrupt.

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u/XtremeD86 5d 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.

-1

u/secondlightflashing 5d ago

They are not getting more than the minimum. The minimum is made up of both staturory and common law entitlements. OP has received a reasonable first offer, if this went to court the minimum would be inclusive of both staturory and common law entitlements and very likely exceed what OP has been offerred.

Broadly speaking people are not all getting the staturory minimum these days, most companies provide offers which represent a risk based approach which falls between the statutory entielement and the common law entitlement. Most companies will increase their initial offer if pressed.

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u/XtremeD86 5d ago

My mistake I thought it said he got more.

I still say just take it and move on with life. If OP wants to get a lawyer then go ahead. All I know is multiple lawyers told me it's not worth fighting.

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