Having been let go from your job can take an emotional toll. You have to figure out how to make your ends meet until you find a new job. When you have been fired from your job, the company owes you something known as termination pay under the Employment Standards Act (ESA). This termination pay is dependent on several factors. Some employees are also entitled to severance pay along with termination pay under the ESA. This severance pay works as a stepping stone till you can find a new job and start again. It can be beneficial during this difficult time. Hiring a severance pay lawyer Ontario can help you to get the severance pay that you deserve.
Are you entitled to severance pay?
Not all employees are entitled to severance pay under the ESA. Those who have worked for the employer for five or more years are entitled. This also includes the time which has been spent by the employee in the employment with the employer, irrespective of continuous or not and active or not. Even all employers are not entitled to pay severance pay. The employer should have a payroll in Ontario of at least $ 2.5 million or severed 50 or more employees in six months because all or part of the business has permanently closed down. The severance pay package or severance package or a severance includes both termination pay and severance. The severance is related to how long you have worked for the company.
The maximum amount payable for termination pay is eight weeks’ notice. The severance pay maximum is 26 weeks, if applicable. The maximum amount for termination and severance pay combined is 34 weeks.
Common Law Reasonable Notice
If there is no legally enforceable termination clause limiting the employment law termination entitlement in the employment agreement to the ESA statutory minimum, the default position is to provide reasonable notice under Common Law.
The Bardal factors mentioned below are commonly utilized to establish what constitutes reasonable notice:
1) the kind and type of the work;
2) the duration of the job;
3) the employee’s age and the availability of comparable positions; and
4) the experience, education, and credentials of the employee.
Except under rare circumstances, the maximum duration of reasonable notice is around 24 months.
Can the severance package be negotiated?
The severance package can be negotiated. Before you negotiate, you must understand the options available and focus on what matters. It is best to reach out to a law firm like HTW Law who will help you in the negotiating process in such a situation. During the negotiation, you must consider how long you were working in the organization and the positions you had occupied. Also, point out how difficult it can be to obtain alternate employment and what your contributions have been to the organization.
Are You Entitled to Severance Pay if You Have Been Constructively Dismissed?
Has there been a fundamental change that has been made to your employment contract? If yes, you need to reach out to an employment lawyer as soon as possible, as you might have a Constructive Dismissal case. Knowledge is always valuable. Being aware of constructive dismissal, irrespective of whether you are a victim of it can help you take action right in time. We are here to tell you all that you need to know about constructive dismissal.
What is constructive dismissal?
Constructive dismissal occurs when the employer unilaterally makes a fundamental change to the material terms and conditions of the employment contract, either by conduct or by words. The employer can make substantial changes like changes in compensation which include salary, benefits or bonus, job responsibilities, reporting functions within the company hierarchy, working conditions, hours of work, the terms of employment, or the location of work. Even if such changes have not been made, a case of constructive dismissal can be filed even when there has been no breach of the employment term. Still, the employer’s conduct is indicative of intentions of not being bound by the contract. An example could be the conduct of the employer to make it impossible for the employee to work.
When a constructive dismissal occurs, an employee can resign and claim severance payment.
When can a case be filed?
A claim of constructive dismissal can be filed to Court under common law reasonable notice or to the ministry of labour under the Employment Standards Act (ESA). You can file a case for constructive dismissal if you have faced any of the following circumstances:
- You have been temporarily laid off, whereas the employer has no right to do so under the employment contract.
- The employer substantially alters the established job duties of the employee, and this is not allowed under the employment law.
- The employer substantially reduces the salary of the employee. Even reduction temporarily without the consent of the employee is prohibited by employment law.
How Can a Severance Pay Lawyer Who Is Familiar with Constructive Dismissal Help You?
Constructive Dismissal law cases can be highly complex. Reaching out to an employment lawyer well in time who is well versed in constructive dismissal and severance pay is crucial. If the employee fails to act timely, he or she might be deemed to have acquiesced to the changes. The employee won’t be able to move against the employer on the grounds of constructive dismissal.
It is always best to reach out to an experienced law firm like HTW Law with years of experience under their hat when dealing with constructive dismissal.
During your consultation, they will listen to you patiently and ask you questions. They will help you determine whether you have been a victim of constructive dismissal or not and how much severance payment you should be entitled to. If you have been a victim, they will work to build a strong case and help you fight for your right.
Undergoing constructive dismissal can take a severe toll on one’s mental health. Having experienced and empathetic lawyers by your side can help you to get through this journey with relative ease and to come out victorious. More importantly, a severance pay lawyer in Ontario can maximize your entitlements if you have been constructively dismissed.
