What am I entitled to if I am terminated as a result of downsizing?
Unfortunately, “tariff talk” has become an almost daily occurrence. This, along with other changes in the economy, has led us to see a number of layoffs in the last few weeks, and Canada’s unemployment rate has been reported to have risen to 6.7 per cent.
When employers are deciding whom to terminate as a result of downsizing, it is important for them to remember that although most employees in Ontario can be terminated “without cause,” those same employees are also typically entitled to compensation.
It is anticipated that more and more employees will be presented with “severance packages” over the next few months, and given the current state of the economy it is more important than ever to consider how those packages will see you through any period of unemployment.
The first thing to remember is that just because you have an employment offer or employment contract that seems to set out your “entitlements” at termination, you still may be entitled to something more. Often these offers or contracts are not binding under the law, and so to simply accept a first offer based on a contract could cause you to limit your entitlements.
Other recent developments, however, that could assist in putting you in a better position if you have been terminated are the temporary changes that have been announced to the Employment Insurance regime. These changes reduce, in many cases, the number of hours needed to qualify for Employment Insurance benefits and waive the one-week waiting period that typically has to be served before you can begin to collect EI benefits.
Importantly, the temporary measures also provide that earnings received from things like vacation pay and pay in lieu of reasonable notice (commonly called the severance package) are not deductible from Employment Insurance benefits during the duration of these temporary measures.
This article was originally published by The Hamilton Spectator.
