Severance pay considerations

Before changing jobs in Canada, you need to consider future severance possibilities.

While a severance package can be as much as 24 months’ pay, compensation for non-unionized employees, including those who work for Canada Royal Milk, is calculated using several factors, including:

• Age
• Position at the company
• Length of service
• Ability to find new work

If you quit your current job, you may not be owed severance

In most cases, non-unionized workers in Ontario don’t get a severance package if they resign from their position voluntarily to take up employment elsewhere. Severance is designed to provide employees with financial support while they look for new work after being fired without cause or let go.

However, if you are forced to leave because of unwanted changes to your job, it’s very likely that you could treat it as a constructive dismissal. In this situation, the law allows you to resign and pursue full severance pay.

If you believe that you have been constructively dismissed, don’t quit your job until you speak with an experienced Ontario employment lawyer at Samfiru Tumarkin LLP.

Your length of service affects your severance entitlements

If you are fired without cause or let go, a key factor in determining how much severance pay you are owed is your length of service.

• Example: If you worked at a company for 14 years and decide to take a new job elsewhere that you sought out on your own, you forfeit the severance entitlements you built up with your previous employer. As a result, if you are fired without cause or let go shortly after joining the new business, you could receive very little compensation.

However, there are situations where short-service employees are owed significantly more severance pay than they realize. If your employer fires you without cause, and you have only been with the company for three years or less, don’t accept your severance offer before contacting our firm.

As long as you didn’t sign the offer and send it back to your boss, you have two years from the date of your dismissal to pursue full severance pay. We can review the offer and help you secure the compensation that you are legally entitled to.

SEE ALSO 
• I already accepted a severance package, what should I do?
• Do I have to look for a new job after getting fired?
• Employment Law Show: Facts about the termination process

Recruited by another company?

In some cases, non-unionized workers in Canada leave their current job after being actively recruited by another company. If your new employer took documented steps to entice you to take up employment with them, this is known as inducement.

In the event that the company decides to terminate you shortly after pulling you away from your previous employer, the inducement should be taken into consideration when determining your severance entitlements.

• Example: Company X entices you to leave your current job to come work for them. If you are terminated shortly after making the switch, the company may be on the hook for enhanced severance pay because of the pressure it placed on you to leave your previous employer.

If this situation applies to you, don’t sign your severance offer until it’s been reviewed by a member of our team.

We can confirm that the inducement has been properly factored into your severance package and help you secure the compensation you deserve if it isn’t.

Starting a new job? Speak to an employment lawyer

Before signing a new employment contract, have the experienced employment law team at Samfiru Tumarkin LLP review the agreement to make sure your workplace rights are protected.

Our lawyers in Ontario, Alberta, and B.C. have successfully represented tens of thousands of non-unionized individuals. We can help you better understand the terms of the contract and advise you on how best to navigate the situation.